December 02, 2019
The Problem With Bubba's Burgers
Let's do a little thought experiment.
You've been driving all morning on a two-lane highway and you're getting hungry. You come to the small town of Nowheresville and at the intersection there are two hamburger joints. One is McDonald's, the other is Bubba's Burgers.
It is highly likely that Bubba makes a better burger than McDonald's. But it is also highly likely that you will choose McDonald's. Why? I think the answer goes something like this.
While you might like to have the better burger, it's more important that you have a burger that isn't risky. While you might like to stop at a place that is comfortable and relaxing, it's more important that you stop at a place that isn't icky.
McDonald's may not make a great burger, and it may not be the most lovely environment, but you have a high level of expectation that the burger won't make you sick and the place won't be icky.
In other words, Bubba's may very well make a better burger, but McDonald's is good enough and relatively risk free. The aversion to unknown risks trumps the likelihood of superiority.
So the question is, why do you believe McDonald's is good enough and safer? I think the answer is simple. McDonald's is famous. Fame creates many advantages.
In all the jabbering about marketing, and all the strategic gymnastics that marketers put themselves through, the simplest and most obvious objective of marketing should be to create fame. Brands that are famous have an enormous advantage over brands that aren't famous.
The world's largest, most successful brands -- the Apples, Nikes, Cokes, Pepsis, Toyotas, McDonald's, Tides, Budweisers, Doves, et al -- all have one thing in common -- they're famous. Does that mean that fame guarantees success? Absolutely not. But it makes the likelihood of success massively greater.
Those of you looking for holes in this argument will say it's circular. It's not the fame that's causing success, it's success that's causing fame. That argument is good for about 30 seconds until you realize that each of these brands spend billions every year to stay famous.
There are several ways for brands to achieve fame. Some get lucky. The press falls in love with them, follows them everywhere, and provides them with zillions of dollars of free exposure -- Google, Uber, Amazon, Tesla -- are examples. With very little marketing activity these brands became enormously famous. Others become famous through imaginative PR initiatives, clever stunts, or the charismatic personalities of their leaders. Or a combination of these things. There are many ways to achieve fame.
Sadly, the likelihood of the press falling in love with you is one tick above zero. Imaginative PR is wonderful to have but very rare to come by. And charismatic leaders are one in a thousand.
The most expensive way to become famous is through advertising. It is the most expensive, but also the most reliable. It is the only avenue to fame that you can buy your way into.
Those of you who know me probably know where I'm going next. Online advertising has not been very impressive at creating widespread fame. While there are certainly some brands who have achieved a level of fame through online advertising, after 25 years there are no Apples, Nikes, Cokes, Pepsis, Toyotas, or McDonald's.
The philosophy behind online advertising is deeply flawed. "Experts" tell us that highly personalized, precision targeted, one-to-one advertising is far more capable of performing successfully because it reaches “the right person, at the right place, at the right time.” This may be true if you have the least ambitious marketing goal -- to generate a click. However, if you have the highest marketing goal -- to build a successful brand -- I have seen no evidence that this is true. In fact, I have seen considerable evidence to the contrary.
Mass-media advertising is demonstrably more effective at brand building than precision targeted, highly individualized advertising. Personally targeted direct response advertising certainly has its uses. But the number of exceptionally famous brands created by direct response advertising is somewhere between zero and nothing. The number of exceptionally famous brands created by mass media is enormous.
Highly individualized advertising makes advertising a private, rather than public, experience. Online, we all live in our own little personalized, precision-targeted digi-world. This is not an environment that is conducive to growing a brand.
To a substantial degree, mass media advertising is public advertising and online media advertising is private advertising. It's hard to become famous in private.
November 27, 2019
No App For Gratitude
Today I am repeating my annual Thanksgiving post which I have run for many years. And, yes, that crack about Trump was there years before anyone could have imagined...
Thanksgiving is my kind of holiday.
It doesn't require gods or miracles or tragedies or victories or angels or kings or winners or losers or flags or gifts.
All you need is some pumpkin pie, a big-ass flat screen, and a comfortable sofa to drool on.
Oh, and a little gratitude.
Gratitude, by the way, is a commodity in very short supply. Regrettably, we seem to have mountains of expectation but not much in the way of appreciation. It's a socially transmitted disease.
So this Thanksgiving let's put aside harsh judgments for a day or two. Thank a fireman. Give a bum a buck. Kiss an in-law.
I don't like Puritans of any stripe, but I like the idea of them having the Indians over for dinner. I know the detente didn't last too long, but any day you're eating sweet potatoes instead of shooting off muskets is a good day.
Be grateful that you have shoes. Be thankful that your cat is healthy. Compliment someone's posture.
If you can't do any of that stuff, then at least give thanks that you won't be dining with Whoopi Goldberg or Donald Trump. That alone should be enough.
Finally, do yourself a favor -- quit whining. That's my job.
And have a Happy Thanksgiving.
November 25, 2019
The Six Stages Of Digital Delusion
This week an old piece of mine from one of my books got some attention on Twitter when someone posted it. I decided to update it and repost it today.
One of our axioms here at The Ad Contrarian Worldwide Headquarters is that in today's world of marketing, delusional thinking is not just acceptable, it's mandatory.
Digital media have been the primary cause and the primary beneficiary of delusional thinking. The fascinating thing is that the cycle of delusion has been going on for almost 20 years and we still don't recognize it.
Here are the 6 stages of digital delusion:
1. The Miracle Is Acknowledged: It may be podcasting or virtual reality, blockchain or the Ice Bucket Challenge, Pokémon Go, QR Codes, or "content." Whatever it is, it is going to "change everything." It will be the focus of hysterical attention in the trade press and will often find its way into the business section of the newspaper.
2. The Big Success: A company somewhere has a big success. This is where the danger starts. The success is plastered all over every trade magazine and analyzed at every conference. It is "proof" that the miracle is real.
3. Experts Are Hatched: Clever "experts" gather up a Powerpointful of bullshit and march it around from conference to conference. They write articles, and even books, on how not to be left behind.
4. The Bandwagon Rolls: Everyone who knows nothing is suddenly asking the marketing department, "what is our (latest miracle) strategy?" Fearing that she will be thought insufficiently trendy, every CMO is suddenly looking for an agency that is expert at (latest miracle.)This cycle has repeated itself so many times that it's comical.
5. Reality Rears Its Ugly Head: The numbers dribble in. Oops...people are ignoring our miracle by the billions. The miracle seems to be working for everyone but us!
6. The Back-Pedaling Begins: "Well, it's just part of an integrated program..." say the former zealots. The experts start blaming the victims, "Hey, we never promised...We told you you had to... Just wait, you'll see..."
Meet the new boss. Same as the old boss.
November 14, 2019
Greg Stern Needs To Apologize
Greg Stern is Chair of the 4As. Unfortunately for Stern, his chairmanship has coincided with the
most unsettling, corrupt, and damaging era in the history of the ad industry.
In recent years, we have assiduously cataloged the problems the ad industry is facing (here's a good place to start.)
Earlier this week, Stern wrote a piece for Campaign in which he tried to frame the confused and weakened state of the agency business as a hopeful jumping-off point for "positive change." That remains to be seen.
In the course of doing so, Stern took some ill-advised and unnecessary cheap shots at people who have done nothing but radiate credit on our industry.
Stern's article is framed as his reaction to presentations and comments he has heard recently at industry conferences. He starts out by saying that the "overriding messages have spanned from hopeful to dire." Fair enough. I attend lots of conferences, too, and I hear the same baloney.
Next he gives us his "real talk" outlook: Yeah, it's tough out there but this is no time for negativity. OK, if we were in his shoes we'd do the same.
Then we get the obligatory parade of clichés about "transformation," "disruption," and "collaboration." Once again, fair enough. In his position, I'd throw a coin in the jargon jukebox, too.
But then things go very wrong. Instead of honestly asserting that there are reasons to be concerned about the direction of the agency business -- which is shocking news to absolutely no one -- he looks for scapegoats.
He starts by planting the seed that conference organizers sometimes have unwholesome ulterior motives...
"a conference sponsor’s agenda will often come through, whether implicitly or overtly."He follows it up one paragraph later with...
"I recently attended a small, private conference in San Francisco, where the tone wasn’t even cautiously optimistic."This is patently false. I spoke at that conference. It included some of the most upbeat and inspirational speakers you could hope for. It including Margaret Johnson, Chief Creative Office and Partner at Goodby, Silverstein & Partners, Sarah Mehler, CEO of Left Field Labs, and Mark Figliulo, founder of FIG.
These are three amazing, talented, and cheerful people who made me, and I'm sure everyone else in the room, proud to be in the ad business. I don't know what presentations Stern was watching, but the assertions that the nature of these presentations "wasn't even cautiously optimistic" is beyond explanation.
The conference in question is nothing short of excellent. It has been so for 10 years in which time it has displayed the type of integrity that some of our advertising "leaders" could learn from. The implication that it was influenced by some treacherous "sponsor's agenda" is, there's no other way to say this, simply truth challenged.
Another of Stern's cheap shots made me sick. Stern characterized one of the talks as follows... "one industry big thinker phoned in a presentation (literally)"
I'm not going to abuse anyone's privacy by naming names, but the speaker in question is a very brilliant person who's had a stellar career in advertising. He made a phenomenal presentation despite terrible hardships. He could not come to the conference because of a heartbreaking illness to one of his children. Instead he did his presentation over the phone from London. I just hope for Stern's sake that he never has to "phone in" a presentation for a similar reason.
Stern owes an apology to the organizers of the conference for implying that there was some kind of sinister "sponsor's agenda" lurking in the background. There most certainly was not.
He also owes an apology to the speakers mentioned above for the nasty and condescending characterizations of their excellent and inspiring talks as "not being even cautiously optimistic."
***
But of course, since I was on the agenda, it wasn't all lollipops and roses. Stern says...
"The Ad Contrarian delivered his usual rant, only somewhat paraphrased as 'no one in digital advertising has any idea what the hell they’re doing.'While I will gladly stipulate that no one in digital advertising knows what the hell they’re doing, this is a grossly inaccurate characterization of my talk.
In fact the lead organizer of the event, one of the most highly respected advertising lawyers in the industry, wrote to me after the event to say...
"Several of my colleagues who dropped in....told me you were the best, most entertaining, and important speaker we’ve had at the firm in anyone’s memory."But, as we all know, you can never trust a lawyer. So judge for yourself. I am posting my entire talk here. Read it and see if the distinguished 4As Chair's characterization of my talk is fair.
Make no mistake, I was highly highly critical of the industry and I could see how it would make Stern squirm. But if he wanted to counter my argument he had a perfect platform to do so in his article in Campaign. Instead he opted for an ad hominem cheapshot.
It's hardly fair to lay all the troubles of the ad industry at Stern's feet. I have no idea what the chair of the 4As is supposed to do other than go around mumbling platitudes about transformation, disruption and collaboration. I understand why Stern wrote what he wrote. He's in the wrong place at the wrong time and he's had a tough go.
However, mean-spirited, self-serving commentary should remain the purview of blogweasels like me. It doesn't reflect well on the chair of the 4As.
November 11, 2019
Upgrading From Email To Fmail
Email was fun, but we can do better.
It's time for us to disrupt the entire personal communication ecosystem. We need to upgrade to fmail.
Email was good for two types of things:
1. Receiving annoying messages from people we know who want something from us, and
2. Receiving annoying messages from people we don't know who want something from us.
The time has come for us to bifurcate. I love to say bifurcate.
Email can remain the system of choice to connect with the people we know. It would be made up primarily of messages concerning...
- Meetings we don't want to go to
- Dinners we don't want to eat
- Parties we don't want to attend
- Weddings taking place on days we were planning to play golf
- People cancelling lunch plans
- Naughty jokes that aren't funny
- Political opinions that are hilariously funny
Then there's fmail.
First of all, let's not pretend we don't know what the f stands for. Fmail would constitute about 99% of what is currently called email. It would include...
- Notifications that we have to update Flash
- Invitations to attend the Double Secret Real-Time Programmatic Insider Summit
- Amazing deals on airline flights to places we don't want to go
- Amazing deals on hotel rooms we don't want to occupy
- It's someone on LinkedIn's birthday!
- How do rate our recent stay at St. Larry's Hospital?
There are other changes that need to be made to the messaging ecosystem. Just to get the ball rolling... If you're a male athlete, please don't text me pictures of your dick. Also, if you're a Russian female athlete, please don't text me pictures of your dick.
November 06, 2019
Making It Up On Volume
There's a very old business gag about losing money on every sale but making it up on volume.
While the premise of losing on every transaction but making up for it with lots of transactions may be ridiculous, in our confused world of marketing it has become a foundational principle.
Essentially what most brands are doing when they flood the web with idiotic social media posts and self-serving nonsense masquerading as "content" is hoping that their lack of ability to derive a cogent, commanding concept for their brand can be disguised and tarted up with a torrent of moronic bullshit.
They even teach this nonsense in marketing programs with concepts like "always-on" marketing, and denigrate the essence of marketing effectiveness by claiming that "the big idea" is dead.
Of course, when you don't have the talent to create something worthwhile the next best strategy is to declare it dead.
McDonald's former CMO claimed that in 2016 they would create 5,000 pieces of online content. That's one piece of
Nothing very useful, but making it up on volume.
November 04, 2019
Our Principal Problem Is Principles
In most fields of endeavor progress is achieved by the accretion of knowledge over time.
In medicine, for example, we learned of the germ theory of disease. Then we learned that there were not just bacteria causing diseases, but other agents like viruses. Then we learned that parasites and fungi could also cause disease. But it all started with the basic knowledge that diseases weren't caused by frogs or witch's spells, but by germs.
In aeronautics, the materials we use to make airplanes are completely different from the ones used 100 years ago. But we still use the fundamental design of a fuselage and a pair of wings. The principles of lift and acceleration are still basic to airplane design and function.
Copernicus taught us that the universe did not revolve around the Earth, but that the Earth revolved around the sun. Then we discovered that there were other bodies revolving around the sun, called planets. Then we discovered that that there were stars that didn't revolve around the sun. And then we found there were things that we thought were stars that turned out to be galaxies comprised of hundreds of billions of stars. One thing lead to another.
Advertising is different. We respect no history. We observe no principles. We have no connective tissue.
Every generation tosses out what was learned before and declares it dead. Marketing is dead. The Big Idea is dead. Positioning is dead. Brands are dead. Traditional media are dead.
Every generation invents its own clichés that mean nothing, but for a brief time pass for principles -- likeanomics, engagement, conversations, storytelling, empowerment.
The absence of principles is the dirty little secret behind why we engender so little respect in the business world. A field of endeavor without principles is not a discipline -- it's a free for all.
What are the principles that everyone in advertising agrees on? In most disciplines there are unifying principles. Some examples: Physics has the law of conservation of energy. Biology has natural selection. Medicine has the germ theory of disease. Economics has the law of supply and demand. These are fundamental to the nature of the field. In advertising, what are the proven unifying fundamental principles that we all accept? If there are any, I don’t know what they are.
We used to believe that creativity was the essence of successful advertising. No longer.
We used to believe that big ideas were the backbone of outstanding advertising. No more.
We used to believe that an agency's primary job was the delivery of outstanding ads to its clients. Not today.
What do we believe in now? Likeanomics, engagement, conversations, storytelling, and empowerment? These aren't principles. These are the tired clichés of a struggling industry.
October 15, 2019
Advertising's Decade Of Delusion
The ten years we have just experienced were expected to be some of the most fruitful and productive in the history of advertising. We had amazing new tools and stunning new media that we never had before. The whole thing was head-spinning and certain to engender all kinds of remarkable opportunities for advertisers.
Our ability to reach consumers one-to-one with web-based platforms was sure to make advertising more personalized, more relevant, and more timely.
Brands' abilities to listen to consumer conversations through social media and react quickly couldn’t help but connect us more closely with our customers.
Consumers themselves would be one of our biggest assets by engendering conversations about our brands and helping us understand and define what our brands should represent.
Further, the web would have a democratizing effect on society and particularly in the business sphere where new brands could flourish without spending lavishly on marketing.
And yet, the past decade has been the most disappointing and disheartening period that I’ve experienced in my long advertising career.
It is widely believed inside and outside the ad industry that on the whole the state of advertising has gotten worse, not better.
Consumer research shows that regard for our industry is at a new low. It's gotten so bad that we have half the trustworthiness of lawyers.
Marketers are disillusioned. They don’t trust us. Their trade organization, the ANA, has officially stated that they believe corruption in our industry is “pervasive.”
Brands are facing strong headwinds. A recent study by Nielsen reported that consumers say they are 46% more likely to change brands than they were just 5 years ago, and only 8% say they are strongly brand loyal.
Regulators and governments are after us with a passion. They want to know what we are doing with data and whether we are acting illegally in collecting, trading and selling personal private information about consumers.
By steadfastly defending the abusive and creepy surveillance practices of our adtech ecosystem, the "leaders" of our industry are clearly on the wrong side of history.
As for consumers, one study showed that of all forms of advertising, the eight types rated the lowest by consumers were all forms of online advertising. Ad blocking apps are reportedly present on somewhere between one and two billion devices.
Meanwhile tens of billions of dollars are being stolen annually from our clients by online ad fraud.
Marketers are taking their advertising duties in-house and hiring consulting firms to do what we used to do.
As for the democratizing effect, it has been just the opposite. The web has produced advertising and marketing monopolies (Google, Facebook, Amazon, YouTube, etc) that would never be tolerated on dry land. Our industry has been right in the middle of scandals that have undermined our confidence in free and fair elections.
To say that the last decade has not lived up to expectations is like saying the Titanic was a boating mishap.
Our industry is in trouble. I believe we've had a lost decade. We have allowed ourselves to be bamboozled by the suspect assertions of articulate people -- and more than a few clowns -- masquerading as experts. We have lost any healthy degree of skepticism. It has cost us dearly.
Our industry needs to take a good hard look at our assumptions and where those assumptions have led us. It's time for the pretending to end.
September 19, 2019
Everything I Know About Advertising I Learned From A Blues Song
I was wasting time on the web the other day and I came upon an article from Medium called "Let’s Talk About How to Build a Brand." There was nothing actually wrong the piece if you're the kind of person who likes to read instruction manuals. It was kind of the 30-minute version of Marketing 101.
But, like so much of marketing thinking today, it was all brains and no guts.
It reminded me of my Aha! advertising moment when I realized how the whole thing works -- when I realized that it's not about how marketing works, it's about how people work.
I was listening to an album by Ry Cooder called Paradise and Lunch, a monstrously great album. One of the tunes on the album is called Feelin' Good, which was written by a blues singer named J.B. Lenoir.
In two lines, Lenoir made me realize how simple the whole thing is and how stupid I'd been not to understand what was right in front of me. He tells us more about how marketing works than all the books in the worldwide marketing library...
"Feelin' good, feelin' goodAll the money in the world spent on feelin' good"
And after years of working in advertising I finally understood how the whole thing works. People buy what they believe will make them feel good.
Why do they buy an iPhone instead of a Samsung? Because they believe will make them feel good. A Ford instead of a Chevy? Because they believe it will make them feel good. A Bud versus a Coors? Because they believe it will make them feel good.
They don't buy to be part of a tribe, or to have a brand relationship, or to do any of the prodigiously analytical things our marketing prophets tell us. What our experts are seeing is what it looks like from the outside.
What people are actually doing is buy what they believe will make them feel good.
Next time you sit down to create or evaluate an ad, remember this..."All the money in the world spent on feelin' good."
September 08, 2019
A Conspiracy Of Silence
For several years the advertising industry has been engaged in a conspiracy to deceive its clients and the public about online advertising.
It is not the kind of conspiracy you get when bad people get together to plot a crime. It is the kind of conspiracy you get when greedy, frightened people individually decide it is safer to keep their mouths shut than tell the truth.
For the last few years we have been flooded with scandals and revelations about corruption, fraud, and lies in the online advertising ecosystem. Here is just a partial list in no particular order:
- Tens of billions of dollars in online ad fraud.
- Inflated and absurd “metrics” from Facebook
- Advertising dollars going to supporting terrorist, nazi, and pornography sites
- Advertisers unknowingly supporting pedophile rings on YouTube
- Billion dollar fraud in influencer followers
- Traffic fraud
- Criminal federal investigation of Facebook data sharing
- The UK’s Information Commissioner’s Office stating that adtech is “illegal” and “out of control”
- A report from the Association of National Advertisers claiming that corruption and kickbacks were “pervasive” in the advertising industry.
- Massive fraud in social media followers.
- Click farms going 24-hours a day
- Numerous scandals involving online publishers, search engines, and browsers spying on people without their knowledge or consent.
- Sharing of “secure” personal information among web entities
- FBI and Justice Department investigations of media practices.
- Google secretly sharing personal data with advertisers.
I believe they have been engaged in an unspoken conspiracy.
Not a single one of the scandals involving online media were brought to light by a media agency. Not one. Let's put this another way -- not one of the scandals about online media were exposed by the people whose job it is to scrutinize online media.
Agencies, particularly media agencies, are as close to the online media industry as you can get. They are analyzing online media 24 hours a day. They are responsible for seeing to it that hundreds of billions of online advertising dollars are spent properly every year. They work very closely with media. They have the facts at their fingertips. They are assessing online media opportunities on behalf of their clients every day.
How can it be that reporters, who are not trained in media, have not nearly the resources to scrutinize media, and have no expertise in analyzing media, were able to sniff out scandal after scandal while the "experts" were not able to do so? It is not possible. It doesn't even pass the giggle test. As one very highly regarded media analyst commented to me recently, "agency bigwigs are notoriously paranoid and fearful. There's a strong code of silence..."
If it were left to the leaders of the ad industry, we would know nothing about any of the appalling stories listed above. By concealing their knowledge of deceit and dishonesty in online media, the ad industry has failed at one of their most consequential responsibilities - being trustworthy stewards of their clients' money. Instead, they have been responsible for wasting billions of client dollars. Why?
- Because they're afraid to admit they've been played for fools by online media.
- Because they get fees or commissions on most of the wasted billions.
The ad industry has allowed itself to crawl into bed with the squids at Facebook and Google and the rest of the devious adtech weasels. It makes us look like fools. Every week there are alarming reports of fraud, corruption, privacy abuse, and security failures in online media and we shrug our shoulders and duck for cover.
The ad industry, controlled by misguided and incompetent leadership at trade associations and holding companies, had better get its act together. By being lapdogs to the corrupt and dangerous online media we are quickly squandering what's left of our credibility.
We are on the wrong side of history and will continue to stay there until the silent conspiracy to protect online media ends.
July 24, 2019
Three Reasons To Like Gary Vee
If you ever tell anyone I said this I'll deny it, but I kinda like Gary Vee. I know he's full of shit but I can't help liking the guy.
Here are three reasons I like him:
1. He gives hope to those suffering from DDD (Delusional Disrupter Disorder.) These meatballs think that Gary's "just a poor boy with a vision" hooey is a model for success. They don't understand probability. They have about as much likelihood of gaining success from Gary's homilies as I have of winning a hugging contest. Nonetheless, he gives them hope.
2. Our business has two kinds of bullshit - the cold bullshit of the data weasels and the hot bullshit of the Gary Vees. You can have your Powerpoint-addled jargon-spewing data-monkeys. I'll take Gary's hot bullshit any day.
3. He had to grow up in New Jersey with the name Vaynerchuk. You try it.
June 24, 2019
The Only Test Of Brand Purpose
The message from Cannes this year is very clear. Every brand in the world is now trying to woke-wash itself to appear more acceptable to socially conscious consumers. Much of it is cynical bullshit.
The key to understanding which companies are truly doing the right thing, and which ones are using token "brand purpose" as a PR gimmick is very easy. There is only one conclusive touchstone to knowing who is truly committed to social welfare and who is a cynical poseur...
To what lengths do they go to avoid paying taxes?
The most serious attempts to create a better society are substantially funded by tax dollars: education; affordable housing; civil and personal rights; job training; infrastructure; health care. Companies who take unusual and excessive measures to pay little or no taxes are depriving our citizens of the tools we need to improve our societies.
The hitching of a brand purpose initiative to a politically fashionable cause while behind the scenes going to great lengths to avoid paying a fair share of taxes is a deplorable and cynical manipulation of public perceptions.
The fact that these tax gimmicks may be technically legal does not impress me one bit. It is perfectly legal for me not to support charitable causes, but as a responsible citizen I choose to be better than the law requires.
As far as I'm concerned, corporations who use advertising and marketing dollars to pound their chests about their trendy brand purpose cause-du-jour, but employ legions of lawyers to avoid the true cost of improving society are nothing but scum.
June 19, 2019
Dying At Cannes
For the 100th consecutive year I did not go to Cannes. But the good thing is, I know exactly what happened and saved myself thousands of dollars. As a free service to you other losers who didn't attend, here's what you missed
- A very casually dressed ceo from a very big holding company said that the consumer is changing and we have to change to keep up with the changing consumer. He said we have to evolve or die.
- A very rich and famous creative person gave a very stirring speech about how creativity is the heart and soul of our industry and we have to get back to celebrating creativity. Agencies that don't prioritize creativity won't be around long.
- Another famous creative person with very expensive eye-wear said we need to be brave. Those that aren't brave won't last.
- A very earnest female executive gave a talk about how we have to value all people regardless of sex, sexual orientation, race, religion, absence of religion, age, ability, body type or gluten sensitivity. Marketers that don't value diversity will soon be dead.
- A very European planner gave a talk about how we have to stop thinking short-term and realize that brands are built by long-term strategy. Those who focus on the short-term will disappear in the long-term. (Then she hurried out to see how many tweets her talk got.)
- A panel discussion was held to discuss the future of marketing. It was agreed that more personalization was necessary to make marketing more relevant to consumers. Brands that don't have better insights into individual consumer behavior don't have long to live.
- A panel discussion was held to discuss the future of the agency business. It was agreed that the agency business must align its priorities to the evolving needs of our clients or we will fade away.
- A very famous celebrity from outside the advertising industry gave a talk on why he/she now pays as much attention to social media as he/she does to acting/singing/basketball. "You have to stay in touch to stay alive."
- A very famous billionaire sent a very mid-level executive to explain how their company is committed to protecting consumer privacy by developing an AI process to screen out everything and everyone that is bad. "If we don't do that, we have no future."
- A research expert said that in order to understand Gen Z we must forget everything we know about Millennials, who were digital natives, and start to understand Gen Z, who are "digital aboriginals." Ignoring the needs of Gen Z is a death sentence.
There is so much potential for death in the advertising business these days that there is only one responsible way to avoid marketing's grim reaper -- hang out on yachts and gulp putrid rosé.
- A panel of branding experts agreed that consumers now expect brands to be socially responsible and make the world a better place for all people regardless of sex, sexual orientation, race, religion, absence of religion, age, ability, body type or gluten sensitivity. Brands that don't do that will soon be extinct.
Thank goodness there are thousands of men and women from around the world who are willing to do this on our behalf.
Otherwise, we'd be dead.
June 11, 2019
My B2B Dream
I had a B2B dream last night. I heard somebody say...
We want to become your customer experience partner. We'll help you architect cutting-edge systems, both human and virtual, from high-quality product provision to unique problem resolution through customized resource management solutions.
We are laser-focused on re-imaging customer experience and future-proofing your business. In doing so, we also provide hands-on training to keep your employees engaged, more productive, and up to date on all aspects of your integrated solution suite.
Regardless of what industry you're in, we have the answers for your resource and system needs. Our data-driven, turn-key deliverables protect your most valuable assets - your customer relationships! We have the ability to work with many different industries, quickly responding to changing applications and environments, while staying focused on quality and best-in-class performance.
We analyze your historical and forecasted needs to ensure high execution while reducing costs.
Our experienced experts will visit your distributed work environments and evaluate your operating modalities to advise on enhancements that will improve your key measurables and create ongoing alignment with sales and engagement goals. They’ll deliver a detailed report and recommend solutions tailored to your toughest KPI challenges.
Here are some ways that our eBusiness solutions can benefit you:
• Dynamic integration
• Catalog extracts
• Process regeneration
I said, "Okay. But what the fuck do you DO?"We are committed to both innovation and speedy adoption of disruptive sales-side ecosystems.Our highly-trained associates take your operating blueprint and provide you with a finished global solution. The final resource set will be of the highest quality and will be validated and delivered with robust support structures. Additionally, we will source and integrate these structures into your assembly per your stated requirements.
In short, we are inverting the traditional systems architecture and abandoning outmoded team structures in favor of high-octane solutions that supercharge opportunities for growth.
We want to be your total resource solutions partner!
June 04, 2019
The Wrong Math
Daniel Kahneman, Nobel Prize winner, says people don't believe facts. They believe experts.
In some fields experts have credibility. Mostly it is in fields of hard science like medicine, physics, and chemistry where expert opinions can be tested.
In soft science, like economics and sociology, where enormous variables exist and controls are hard to establish, experts have far less credibility. There is also far less agreement within these disciplines. A quote attributed to George Bernard Shaw goes like this, "If all the economists were laid end to end, they would not reach a conclusion." Not because they are any less serious, but because their theories are difficult to prove or disprove.
Sadly in the field of advertising and marketing, experts are not usually hatched based on their record of producing reliable results, but on their ability to attract attention. Consequently we should be highly dubious of their "expertise." But we're not. Because as Kahneman also says, "a reliable way to make people believe in falsehoods is frequent repetition."
One of the most frequently repeated and, in my opinion, highly dubious tropes in our industry these days is the idea that the paragon of media strategy is "mass one-to-one" communication. In non-jargonista terms, this means reaching large numbers with individualized messages.
You would expect that this assertion would be met with skepticism. For one thing, there is no record of "mass one-to-one" communication achieving anything. You might argue that no one has yet been able to engineer "mass one-to-one" and that is why there is no record. Which is exactly my point. Shouldn't we exercise a little skepticism about a theory for which there are no examples?
All of our huge brands -- Apple, McDonald's, Coca-Cola, Toyota, Budweiser, Tide, Crest, Nike -- (I could go on here all day but you have work to do) have been created by the supposedly wasteful and sub-optimal mass media.
The power of the marketing feedback loop seems to have caused our industry to lose its ability to be sober or skeptical. Or as Kahneman might put it, facts don't matter. Experts do.
The reason we accept the fairy tale of "mass one-to-one" with absolutely no evidence is that a) experts are talking about it, and b) our math experts (in media and data) say it's true.
I don't believe the experts, but I do believe in math. I believe math can offer us insights into how advertising works and how consumers can be influenced. The only problem is, I think we're using the wrong math. If you'll pardon my cliché, we have the wrong algorithm.
I don't know what concept of math the data experts use to persuade marketers that "one-to-one" is the media model of choice, but I believe the math model we should be using to understand media effectiveness is probability. In other words, what media strategy is most likely to produce the desired result? For large consumer-facing brands, there is ample evidence that (the prudent use of) broad based media has the highest likelihood of achieving the desired result of building substantial brands, and almost no evidence of anything else doing so.
The mathematics-based rationale for the primacy of mass one-to-one advertising and its alter ego precision targeting seem to go something like this: a) you are not wasting money on people not interested in your product, and b) customized ads are more relevant and persuasive.
This may be true for certain types of B2B marketers and highly-specific brand categories, but I think both these rationales are wrong for mainstream brands. I think probability would tell us three reasons why they're wrong.
First, I believe brands are far more likely to achieve big success if they are well-known. Public media (broad based media) make you well-known. Private media (one-to-one) don't. Perhaps the best argument for this can be found outside the advertising industry. As many have noted, in their early stages Google, Facebook, and Amazon were brands that became successful without advertising. How did they become successful? One component was that news media fell in love with them and gave them zillions in free coverage. These companies became well-known without advertising, and being well-known helped them grow. The rules of probability don't just apply to advertising, they apply across the board.
Second, I believe people are more likely to accept the legitimacy of brands that advertise in public than brands that advertise in private
Third, except for sociopaths, we all (secretly) want to fit in. Understanding what products fit with our peer culture is part of fitting in. This is why goths wear black and golfers wear plaid. Consequently, we are more likely to buy a brand about which everyone in our group knows what the brand stands for. Public media provide the framework to believe that your group has the same understanding of what the brand is about as you do. Private media do not. When advertising is customized for individuals, we have no idea if others know what we know.
Byron Sharp tells us the key to growing a brand is acquiring new customers. I believe probability tells us that the more people we communicate with loudly and in public the more customers we are likely to acquire.
Another way to look at this...
The great Rory Sutherland says that "A flower is just a weed with an advertising budget." His point is that flowers expend a lot of resources to look and/or smell pretty. And about 125 million years of evolution have shown that the expenditure pays off.
If there was a superior way for a rose to attract bees by individually or precision targeting certain types of bees with certain types of attractiveness, one would assume it might have evolved by now. Instead, roses produce a lovely, fragrant flower and let probability do its work.
Only time will tell if "mass one-to-one" is the formula for building big brands. I'm betting the under.
May 28, 2019
The Stupidity Of Ignoring Older People
A few weeks ago I was invited to speak at the NextM conference in Copenhagen, hosted by Group M.
Here is a short excerpt from my talk. In this section I'm talking about the stupidity of marketers who are obsessed with millennials and ignore older people.
May 22, 2019
I Go To Conferenceland
One of the downsides of making your living as a loudmouth is that you have to do it in public. This means participating in conferences. As everyone knows, there's nothing in the world as dreary as a marketing conference, with the possible exception of a State of the Union address or lunch with a CMO.
It is my good fortune that when I speak at conferences I am usually billed as the keynote, which often means I get to speak first. Speaking first has one great advantage. After I speak I can wait until no one's looking then sneak out the back door and find a nice quiet bar.
I was at a conference a few months ago and I decided to be mature and hang around and listen to some speakers. I'll never make that mistake again. Here's what I learned:
I was at a conference a few months ago and I decided to be mature and hang around and listen to some speakers. I'll never make that mistake again. Here's what I learned:
- The future is going to be amazing. No one's going to have to do anything. Everything will be done for us by AI, or robots, or Jeff Bezos. We won't have to work, rotate our tires, or chew our food.
- Robots, by the way, will be stealing our jobs, our airline miles, and our children
- Women will also be amazing. When they run everything there will be no poverty, or inequality, or wait times at the Genius Bar. Except that one from Theranos.
- Advertising, on the other hand, is not amazing. In fact, it's dead. It's going to be replaced by Google glasses or flying cars or moving sidewalks or something.
- Better expect the unexpected because if you expect the expected than your expectations will be unexpectedly... I don't know...something very scary.
- China and India are going to have their own internets which will be better than ours because your password will be embedded in your brain or your kidneys and you won't have to update Flash every half hour.
- Data is not only the secret to marketing success, it also makes your car's engine run smoother and -- something you probably didn't know -- it makes a great Father's Day gift!
- Facebook is changing. No, really, they mean it this time! They're going to be double-extra careful with our data, our bank account numbers, and our drug bust records by taking all our files and putting them in Ziploc bags. And if anyone tries to break into them they will suspend them and not let them open another Facebook account for almost twenty minutes. Unless they use another name.
- Consumers love your brand and want a relationship with it and want to join the conversation about it and share it with their tribe... or, wait a minute... (DISSOLVE TO 30 MINUTES LATER)... brands mean nothing to consumers. The internet has disintermediated everything and the whole idea of brands is totally stupid... (CUT TO PANEL DISCUSSION)
- Gen Z is a whole new species of human that is even cooler than millennials. You have to get rid of all those clueless millennials you just hired because they are stupid dinosaurs. If you don't have a Gen Z strategy in place by tomorrow 9am you are already too late and you are dead. By the way, we are holding a 3-day Gen Z Insider Summit in Orlando next month...
- Consumers will love your brand of orthotic shoe inserts even more if your brand purpose aligns with their values and they know you are committed to world peace and colonic cleansing.
- And, by the way, everything is changing and if you don't change you will be left behind and die. It doesn't matter what you are, you have to change into something else. It doesn't matter what you change into as long as you stop doing whatever it is you are doing and start doing something else that requires AI, robots, or Jeff Bezos.
My advice is stay the hell away from marketing conferences unless, of course, I'm speaking. In which case, bring the whole family.
April 30, 2019
Marketing And Modesty
Human beings have an annoying habit of thinking we know things we don't really know.
In “The Cooling World," April 28, 1975 Newsweek informed us that meteorologists "are almost unanimous" that “catastrophic famines might result from…global cooling”
On Sept. 14, 1975 The New York Times told us that this global cooling "may mark the return to another ice age."
And on May 21, 1975 the Times said "a major cooling of the climate is widely considered inevitable" because it has been "well established" that the climate in the Northern Hemisphere "has been getting cooler since about 1950."
Seems they were wrong.
Up until a few years ago, we thought we knew what the universe was made of. There was matter, which was largely atoms composed of electrons, neutrons, and protons. And there were four forces - gravity, electromagnetism, and the strong and weak nuclear forces.
It turns out we have no idea what the universe is made of. Science now believes 94% of the universe is "dark matter" and "dark energy." Which is another way of saying, we have no fucking clue what it is.
My psychiatrist friends often tell me how unfathomable a lot of human behavior is. And yet 27-year-old account planners seem to understand behavior so thoroughly.
If the A students who study physics, math, climate and medicine are so often misguided, do we really believe the C students who study advertising and marketing know anything?
I’ve been around advertising and marketing a long time, and I’ve noticed something. I’ve noticed that we have a lot of unreliable opinions.
I had a long and pleasant career in the advertising business. I’ve had the opportunity to create multi-million dollar campaigns for brands like McDonald’s and Toyota, and Bank of America and Chevrolet.
I’ve been invited to speak in dozens of countries.
My opinions and comments have been sought by organizations like the NY Times, the BBC, the Wall Street Journal and other substantial media groups around the world.
And I’ve written 4 books about advertising that were Amazon #1 sellers.
I don’t say any of this to brag. I say it for the exact opposite reason — to make an important point. The point is this - I don’t know anything. I am faking it. I always have been. I have no idea why anybody buys anything. I have no idea why you buy Coke instead of Pepsi, or Nike instead of Adidas. As a matter of fact, I have no idea why I buy Coke.
As we used to say back in Brooklyn, I don’t know shit.
In my career I’ve worked with hundreds, if not thousands, of marketing and advertising people. And I mean no disrespect, but I don’t think they knew shit either. Mostly what we do is precision guessing.
I think we would be wise to keep open minds and admit that a great deal of our understanding of consumer behavior is incomplete at best, and wrong at worst.
We would do ourselves and our industry a whole lot of good to exercise a little modesty and discretion when we claim to know things we don’t really know.
April 16, 2019
AI And BS
AI is now in the same fantasy phase that online advertising was in 20 years ago. We are being bombarded with horseshit about how AI has made everything so wonderful -- and in the future is going to make everything even wonderfuller.
Here are a couple of spots from AT&T and IBM going all goofy about AI.
And this...
As always with new technology, the benefits are easy to foresee and the dangers are either invisible or willfully ignored. Twenty years ago, when the ad world started to go all gaga over "interactive advertising," who could have foreseen...
- Billions in ad fraud
- "Pervasive" corruption
- FBI investigations
- Federal grand juries
- Bot pollution
- Widespread ad blocking
- Privacy nightmares
- Security breeches
- Election tampering
- Secret files about each of us in the hands of people we don't even know exist
- Degradation of journalism
- Fake news
- and the distrust of governments and the public
Stephen Hawking said, “Whereas the short-term impact of AI depends on who controls it, the long-term impact depends on whether it can be controlled at all.” Hawking went on to say that ignoring the dangers of AI “would be a mistake, and potentially our worst mistake ever." AI could "spell the end of the human race".
Bill Gates, another famous Luddite dinosaur, says, "I agree with Elon Musk and some others on this and don't understand why some people are not concerned."
Of course, the simple-minded marketing industry - armed with its usual obsessions and delusions - can't see anything in AI but 1) another miracle to promote, 2) a topic for dreadful gee-whiz "content", and 3) a great new jargon term to insert into every sentence.
This time around, can we please be a little more mature and thoughtful?
Us? Only kidding.
February 21, 2019
More Elephant Advertising
There is a cute little research trick that semi-clever operators use to con gullible rubes. I will give you a small, silly example of it which I hope will make it more understandable on a large, global scale. It goes like this.
Let's say you want to open a strip club in a residential neighborhood. Obviously, no one in the community in their right mind wants a strip club in their neighborhood. But as the potential owner of the strip club you have to make a case to the city council to try to get your permit.
You do a survey in your community. What you don't ask is a clear, direct question, "Do you want a strip club in your community?" because you'll get a resounding no and a few solid blows to the golden globes.
Instead, you ask a question that sounds kinda like a suitable question: "Do you think the residents of Smallville would benefit from more recreational and entertainment opportunities?" This question has a lot of benefits.
- Who is going to say no to the vague notion of "more recreational and entertainment opportunities?"
- The so-called "recreational and entertainment opportunities" are not defined
- The social ramifications (cost/benefit relationship) of the so-called "recreational and entertainment opportunities" are not described
- 88% of people in our community are in favor of "more recreational and entertainment opportunities." That's what we provide!
- If approved, revenue from our company will contribute over $1 million annually to the tax base in the community.
- We understand that not everyone will be in favor of our business, but enjoying our shows is entirely voluntary and no one is forced to patronize our establishment.
I would submit to you that this is exactly the type of specious rationale that underpins the entire online ad industry. The con goes like this: the reason that tracking and spyware are necessary is that consumers want "more relevant advertising." This claim is put forth virtually every time the spy masters are asked to justify their practices.
To quote a semi-clever operator named Zuckerberg, “People consistently tell us that if they’re going to see ads, they want them to be relevant.”
Yeah, right. People are out in the streets marching for more relevant advertising.
A recent New York Times piece by a communications professor and a law professor exposed this bullshit for what it is. They reported on two large studies they did. Here are some of the results...
"Sixty-one percent of respondents said no, they did not want tailored ads for products and services, 56 percent said no to tailored news, 86 percent said no to tailored political ads, and 46 percent said no to tailored discounts. But when we added in the results of the second set of questions about tracking people (emphasis mine - BH) on that firm’s website, other websites and offline, the percentage that in the end decided they didn’t want tailoring ranged from 89 percent to 93 percent with political ads, 68 percent to 84 percent for commercial ads, 53 percent to 77 percent for discounts, and 64 percent to 83 percent for news."By posing questions in manipulative ways that don't actually describe the issues in question, it is possible to use research to distort the truth. If you ask someone "do you prefer ads that are relevant?" of course they're going to say yes. Just like if you ask if they want more entertainment opportunities.
But if you're asking the appropriate question -- "Are you willing to trade private, personal information about yourself and your family, and have your movements tracked and catalogued both online and offline, and have your emails and texts read and archived, and have files about you sold to anyone who wants to buy them, in order to get more relevant advertising?"-- I don't think you need to be a Harvard-billionaire-semi-clever-operator to know that you better be wearing a cup.
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