The Future of Advertising: Defining the New Rules of Consumer Engagement

TheFutureofAdver.sing:DefiningtheNewRulesofConsumerEngagement

PIERSFAWKES,FounderandPresident,PSFK

SCOTTLACHUT,President,ResearchandStrategy,PSFK

LABS

@PSFK

#FutureofAdvertising

Future of Advertising 2017

The New Rules Of Digital Engagement

psfk.com/future-of-advertising

About PSFK

BUSINESS INTELLIGENCE

Since 2004, PSFK has helped global corporations concept better products, services, communications and experiences. Our researchers, analysts and designers leverage a unique research process with unparalleled access to experts to identify and develop new business opportunities for brands through:

PSFK.com Innovation Portal

• Daily Content

• Trends Report

Events

• Immersion Workshops & Tours

• Expert PanelsI

• Conferences

Consulting

• Trends-Led Strategy

• Product And Service Concepting

• Future Customer Journeys

• Prototyping

• Brand Development

PSFK: Advertising Forecast

LABS

@PSFK


Diminished Attention Spans

The human attention span

shortened from 12 seconds in

2000 to 8 seconds in 2013. Attention Spans: Consumer Insight, Microsoft, 2015

New Interfaces : Chat And Voice

Millennials spend equal or more time in messaging apps than on social networks. Brand Engagement Report, Frank N. Magid Associates, 2015

Ad Blocking

Spending on digital video

advertising increased almost 60% in 2014, while the number of ad

blockers rose from 54 million to 121 million. Ad Blocking Goes Mainstream, PageFair, 2015

Artificial Intelligence

59% of online traffic stems

not from humans, but from

query-focused bots. Distill Networks, 2015

The AudienceIs Changing

LABS

@PSFK


The PSFK Advertising Survey 2016 polled over 150 professionals from brands, agencies, media outlets across 14 countries to understand how advertising professionals view the future of their industry.

The Industry Is Changing

50% of brands think that

advertising is more

important than ever.

Advertising Is Still Important

56% of the industry says

advertising agencies are less important.

But Agencies Are Less So

44% agree that media outlets

are less important as well.

49% of agencies worry that the

agency is less important

than before.

Agencies Are Struggling To Find Their Role

80% of media outlets think the

agency is less important

than before.

Media Outlets Are Encroaching On Agency Responsibilities

Media Outlets Are Fading Too

The New Rules Of Consumer Engagement

CONTENT

Brands that share advice, experiences or compelling narratives invite consumers to seek out their content rather than forcing exposure.

LABS

@PSFK


Owned entertainment channels give brands the full creative control to produce high-quality content that audiences actively seek out during leisure time.

Owned media is now trusted as a source of general news and information by

46% of the population. It is now more trusted than social media.

Edelman Trust Barometer, 2016

01

Story Selling

LABS

@PSFK


Lifetime & Wayfair Viewers Can Buy Everything They See on The Way Home TV Series

@Wayfair

Producer

A+E Lifetime

LABS

01

Story Selling

LABS

@PSFK


Virtual reality, interactive video, and immersive content create activations that introduce users to different perspectives, refreshing routine brand experiences and amplifying emotional appeals.

“I don’t want to take you to a place you can already go. It’s about taking you to a place you can’t go or can’t experience in

the physical world.”

Dan FergusonDirector of Digital Interactive, ReelFX

02

Diversified Perspectives

LABS

@PSFK


02

Diversified Perspectives

Google Small World Pop-up Translation Restaurant Unifies Cultures Through Food

#EverybodySpeaksFood

Agency

m ss ng p eces

LABS

LABS

@PSFK


R&D initiatives and industry expertise inform educational messaging that helps customers optimize product use and improve their routines.

“When branded education is used in the correct way, it doesn’t feel like you’re

being advertised to. You are being useful to someone who is loyal anyway.”

Nicole Yershon Dir. for Innovation Solutions, Ogilvy & Mather UK

03

Brand-LedEducation

LABS

@PSFK


03

Brand-Led Education

Quaker Oats Amazon Echo’s Spoken Instructions Guide Users Through Oats Recipe

@Quaker

Producer

Quaker Oats

LABS

LABS

@PSFK


Mixed media, action-triggered sensors and mobile applications transform products into messaging tools, relaying anything from product information to exclusive content.

“Partner with product to align on a joint vision. Product and marketing need to find

common language to succeed together.”

Brian Irving Global Marketing Director, Airbnb

04

ProductAs Media

LABS

@PSFK


04

Product As Media

Coca-Cola Wish In A Bottle Triggers Shooting Stars

@CokeIsrael

Agency

Gefen Team, Israel

LABS

LABS

@PSFK


CONTEXT

Targeted messaging is evolving from general situational awareness, to create activations that provide relevant assistance to consumers at their micro-moments of intent.

LABS

@PSFK


Split-second moments of consumer attention provide the perfect context for concise, targeted engagements that peak interest and encourage viewers to come back for more.

05

Micro-MomentMedia

“You have to figure how to formulate a message in five seconds. There is a lot more science

required to make five seconds matter.”

Warren Zenna EVP and Managing Director, Mobext

LABS

@PSFK


05

Micro-Moment Media

Campari America

Lyft Ride Credits For Drinkers Who Check Into Bars on Kiip

@CampariAmerica

Producer

Kiip

LABS

LABS

@PSFK


Crowdsourcing accessible data from wearables, sensors and the Internet of Things, content can learn from its environment to anticipate consumer needs and customize output.

06

SituationalInteractions

“Data is collectible everywhere and at every step. Smart brands will know a

person inside and out and offer up only what is appropriate.”

Torsten Gross, CSO, Partners & Partners

LABS

@PSFK


06

Situational Interactions

Nike

Apparel Advertisements Tailored To The Weather

@Nike

Agency

Weiden+Kennedy Portland

LABS

LABS

@PSFK


Artificially intelligent systems, when supported and managed by dedicated human teams, can create targeted activations and respond to individual inquiries at a large scale.

55% of consumers strongly felt that personalization saved them from

browsing irrelevant content.

Going Deeper Survey, Yahoo and IPG Labs, 2016

07

Personalized Engagement

LABS

@PSFK


07

Personalized Engagement

IBM Watson

Cognitive Banner Ads Answer Consumer Questions

@IBMWatson

Producer

IBM / The Weather Channel

LABS

LABS

“Is Flonase safe for my

five-year-old son?”

COMMUNITY

By creating accessible experiences and relationship-building opportunities, companies build advocate networks that appreciate a brand for its products, as well as for its community.

LABS

@PSFK


By entering the consumer lexicon, effective branded emojis, hashtags, gifs, and videos encourage users to share their emotions and experiences while keeping the brand top-of-mind.

41.5 billion messages and 6 billion emoticons or stickers are sent around the world every day on

mobile messaging apps.

Swyft Media, 2015

08

Conversational Assets

LABS

@PSFK


08

Conversational Assets

Netflix

Pop-Up Gilmore Girls Snapcodes Unlock Photo Filters

@GilmoreGirls

Producer

Snapchat

LABS

LABS

@PSFK


Relationship-building initiatives connect audiences to a brand story and emphasize connections, rather than products, as the central focus of a brand experience.

09

Fan Pairing

“Advertising is more about providing a beacon for fans and 'locations' where they can gather

—like-minded people who then can discuss whatever they want.”

Scott DavisVP of Marketing Strategy & Innovation, Nickelodeon

LABS

@PSFK


09

Fan Pairing

KLM

Layover With A Local Connects Travelers And City Residents

@KLM

Agency

ACHTUNG! Amsterdam

LABS

LABS

@PSFK


Live streaming and real-time activations can amplify second screen behaviors to create participatory opportunities for remote fans. 44% of consumers check Facebook or

other social networks while watching TV.

GlobalWebIndex, 2015

10

Second Screen Participation

LABS

@PSFK


10

Second Screen Participation

NBA InPlay

Sports League Creates Fantasy Game That Fans Can Play During Live Broadcasts

@NBA

Agency

NBA Digital

LABS

COLLABORATION

Tapping into the ideas, initiatives and goals of consumers, brands can create cost-effective, collaborative campaigns that build deeper connections those affected.

LABS

@PSFK


Interactive platforms, which use responsive technologies and AI to adapt plotlines to user input, empower people to control the outcomes of their experience.

11

Content Controls

“People want to engage with brands in their own way. Brands can't control all of the

messaging. This is critical for future success.”

Evan OrenstenFounder, CoolHunting

LABS

@PSFK


11

Content Controls

Massive Attack x Fantom

Songs Remixed With Listeners’ Heartbeats, Location and Movement

@MassiveAttackUK

Agency

Fantom

LABS

LABS

@PSFK


Campaigns that celebrate consumers and encourage them to share their experiences create robust and inclusive messages that identify with every consumer.

12

Audience Showcase

44% of people are more likely to engage with brands online if they post real

pictures of their products being used.

Social Annex, 2016

LABS

@PSFK


Cover FX

Social Media Fans Tag Photos With #ShowUsYourShade To Become Makeup Models

@CoverFX

Producer

CoverFX

LABS

12

Audience Showcase

LABS

@PSFK


Whether providing resources, financial or educational support, businesses are learning they can reap rewards by investing in users—not only engendering loyalty, but also showcasing content that connects to their audience base.

13

Creative Patronage

“We are all selfish and want something that matters to us. Brands have to stop talking to

themselves so much and connect.”

Meagan KempenNew Product Marketing Manager, 3M

LABS

@PSFK


13

Creative Patronage

YouTube

Workshops And Creative Tools Support Female Storytellers

@YouTube

Producer

YouTube

LABS

@PSFK


The Future Of Advertising: Emerging Realities

Attention Is

Currency

Relevance Is Contextual

Perspective Is Impermanent

Media Talks Back

Learning Breeds Loyalty

Experimentation Is Welcome

@PSFK


Success Leans

Qualitative

The New Rules Of Consumer Engagement

LABS

@PSFK


Future of Advertising 2017

The New Rules Of Digital Engagement

psfk.com/future-of-advertising

The Future of Advertising: Defining the New Rules of Consumer Engagement

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