Advertising 2020: Insights from the Wharton Future of Advertising Program - Council for Research Excellence
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Advertising 2020:
Prof. Yoram (Jerry) Wind Insights from the Wharton
The Lauder Professor Emeritus
and Professor of Marketing
Future of Advertising Program
Director, SEI Center for Advanced
Studies in Management
Academic Director, Wharton
Future of Advertising Program The Council for Research Excellence
Future Webinars
windj@wharton.upenn.edu October 26, 2017
@whartonfoa
1
Objective
Explore the implications of the
changing advertising scene as
reflected in the findings of
Wharton’s Future of Advertising
Program.
2
Our Agenda
1. Describe the Wharton Future of
Advertising program
2. Briefly outline the Beyond
Advertising Roadmap
3. Discuss key insights and explore
their implications for the audience
4. Conclude with a call for
experimenting with some of our
insights
3
Wharton Future of
Advertising
Program
4
Wharton Future of
Advertising
Program
5
Wharton FoA Agencies Brands Academics
Innovation
Creatives Analytics Researchers
Network
Tech Designers Neuroscientists
Social Mobile Local
Multi-Disciplinary
Traditional Media Emerging Media
Multi-Generational
Behavioral Economics Cultural Anthropology
Cross-Sector
B2B B2C P2P
6
Wharton FoA
Advertising 2020
1. What could/should “advertising”
Idealized Design: The Best
We Can Imagine
look like in 2020?
200+ Thought Leaders 2. What should we do now for that
22 Countries; All Regions future?
7
Wharton FoA
Advertising 2020
wfoa.wharton.upenn.edu
8
The Network Orchestration Model
Wharton Future of Advertising Program’s Beyond Advertising
ALIGN
COMPELLING
OBJECTIVES ALL TOUCHPOINT EXPERIMENTATION
BRAND
Brand
Steward PURPOSE 3 ORCHESTRATION
Network
Culture,
People Society, &
the World
1
2
-Analytic brilliance
-Creative brilliance CHALLENGE
-Design brilliance YOUR MENTAL 4
-Operational brilliance MODELS
CONTENT
RAVES
5
CONTEXT
MADEs
9
Un-Ignorable
Forces of Change
Unabated
+ Speed
Challenges
+ Breadth
+ Complexity
to the status quo
+ Relevance
+ C-Suite Worthy
101. Science & Tech Unprecedented
2. Media Upside Potential
3. Consumers
4. World Issues for the future
5. Business Models
11Exponential Neuroscience & Bioscience
Advances in Emotions rule
Science & Tech
Mobile
Real time customization and personalization
IOT & AI & Cognitive Computing & VR/AR
Understand and Serve
Connectivity & Cloud
Richer, Faster, Cheaper
12Exponential Deeper
Advances in Real Time
Understanding
Science & Tech
OU T S IZ E D
R E S P ON S IB IL IT Y
F OR WH AT WE D O
W IT H T H AT
K N OWLE D GE
13Empowered & Customerization and
Personalization:
Skeptical Make it mine
“Consumers”
Choice Communities
Give me tools to Let me be
make a part of it
better decisions
Competitive Channels
Value I want to call, click and
Give me more for my visit
money
Source: Wind and Mahajan, Convergence Marketing, Financial Times/Prentice Hall, 2001
14Empowered & Indi vi duals w i th
Skeptical l i ves, aspi rati ons,
chal l enges, fami l y,
People communi ti es
Exponential
Advances in BE WORTHY OF
Science & RESPECT
Technology AND
EARN TRUST
15Un-Ignorable
Media Disruption On e-way Two -way
Forces of Change u n d e r s t a n d i n g
& Redefinition
S tatic a p p r e c iDaynt amic
ion
a bniary
S tatio l i t y t o Mo
d beile
liver
Meaningfully
P assive S e n s in g
Media Disruption On e-D imen sio n Immersive
& Redefinition
Visu al Mu ltisen so ry
16Media Disruption Unprecedented Platform
& Redefinition Design Capabilities
Exponential
Advances in
E X C E P T ION A L
Science & C ON T E X U A L IZ E D
Technology E X P E R IE N C ES
17Culture, Health Divide
Society & Our Income Divide
World
Digital Divide
Education Divide
Equality &
Tolerance
Climate &
Sustainability
181. The
Inspiring, customer
2. The co-
3. The
open 4. Network
driven/
Measurable holistic creation model innovation
model
orchestration
model
model
Business Models
8. The
5. The 7.
emerging
competitive 4. Revenue Transformation
market
value models to full service
innovation
model provider
engine
10. The shift
…
9. B- to digital and
Corporations network
business
modelsImplications?
20Insight #1:
Traditional mindsets,
including those about
advertising and marketing,
must be challenged and
Our Insights potentially changed.
21Implications?
22“It has always
worked this way.”
Mental Models:
“We tried it and it
The Primary
didn’t work.”
Impediment to
Transformation
“We’re profitable;
why change?
23What Are
Mental Models
and Roger Bannister breaks the 4 Minute Mile
Why Do They on May 6, 1954
Matter?
What is your 4 minute mile?
24What is the best it could / should be?
Marketers and Agencies,
through Media, at Target WHO? Cross-Silo Collaborators
Demographics
Ads Orchestrated Value-Creation
WHAT?
Touchpoints
Challenge Our When Needed, Wanted,
Frequency
CURRENT
WHEN?
TOWARD
Mental Models of Appreciated
Advertising Reach WHERE?
Where Needed, Wanted,
Appreciated
Push and Persuade WHY? Multi-Win Outcomes
For Sales
Ad Campaign HOW?
Initiatives in Holistic,
Dynamic Ecosystem
25Start using a new
vocabulary.
26Even challenge the objective of the firm…
Challenge FROM TO
everything.
Leave no Align the objectives
Maximize long term of the brand, the
sacred cows.
shareholder value people (consumers…)
and society
27Questions and implications re Insight #1
Marketers and Agencies,
through Media, at Target WHO? Cross-Silo Collaborators
Demographics
Ads Orchestrated Value-Creation
WHAT?
Touchpoints
Frequency When Needed, Wanted,
CURRENT
WHEN?
TOWARD
Appreciated
Reach Where Needed, Wanted,
WHERE?
Appreciated
Push and Persuade WHY? Multi-Win Outcomes
For Sales
Ad Campaign HOW?
Initiatives in Holistic,
Dynamic Ecosystem
28Insight #2:
Shift your focus from
media mix to portfolios of
all touchpoint
orchestration.
29Website
Product
All Touchpoint &Design
Apps
Package
Orchestration Design
Customer
Service Store
Design
Website
& Apps Co- Do
Good
30Questions and implications re Insight #2
31Insight #3:
Deliver your
compelling Leverage the power of content
brand purpose by following the R.A.V.E.S.s
with the right criteria and the power of
content and context by following the
context
M.A.D.E.s criteria
32The Power of
Content: Relevant and Respectful
R.A.V.E.S.
• Know, understand…
• Protect & be trustworthy
• Allow for serendipity
33The Power of Actionable (frictionless)
Content:
R.A.V.E.S. • Opt in
• Learn more & compare
• Share
• Try on/out
• Own (beyond “buy”)
34The Power of
Content: Valuable & Value Generating
R.A.V.E.S.
• Emotional
• Social
• Cognitive
• Mutually Beneficial
35The Power of
Content: Exceptional Experience
R.A.V.E.S.
• Design Thinking
• As good as your last, best
experience
• Or better…
36The Power of
Content: Shareworthy Story
R.A.V.E.S. • Story telling
• Story doing
• Story co-creation
• The “Fame” Effect
37The Power of
Content:
R.A.V.E.S.
38The Power of Multisensory Aesthetic and Design
Context:
• Eyes - sight
M.A.D.E.s
• Ears - sound
• Nose - smell
• Mouth - taste
• Body – touch
• Heart - spirit
39The Power of Audience frame of mind
Context:
M.A.D.E.s
40The Power of
Context: Delivery Mechanism, Interface, &
M.A.D.E.s Platform/Medium
• Unique characteristics
• Distinctive personality
• Emotional bond with audience
• Trusted Curator & Collaborator
41The Power of
Context: Environment and Location
M.A.D.E.s Weather
•
• Geography
• Crowd
• Happenings/News
• What I need/want right now because of
where I am and what is happening
42C itib an k- C iti B ike
The Power of
Context:
M.A.D.E.s
Dick’s Sporting Goods 43The Power of
Context: synergy with Other Touchpoints
M.A.D.E.s
• Exponential Effect of Portfolios
vs. last point attribution/debate
• Really interesting collaborations
44Questions and Implications Re Insight #3
Maximized Substance Maximized Context
R.A.V.E.S. + M.A.D.E.S.
Keep the R elevant & Respectful M ultisensory
R.A.V.E.S. A ctionable A udience
and
V aluable & Value Generating D elivery Mechanism
M.A.D.E.S
Guidelines E xceptional Experience E nvironment
Handy S hareworthy Story S ynergy
45Insight #4:
Bridge the Deadly Silos
1) Objective Silos 7) Responsibility and Accountability
• Sales and Profit vs. Positive Social and Silos
Cultural Impact • Product/Service Sales Objectives vs.
2) Solution Silos Responsibility and Accountability for
• “We need a mobile app” vs. “What Intended and Unintended Impact
problem can we solve?” 8) Intelligence Silos
3) Organizational Silos • People vs. Silos
• Us vs. Them 9) National Silos
4) Generational Silos • Global Efficiency vs. Local Sensitivity
• Extensive Experience vs. Fresh 10) Cultural Silos
Perspectives • What Makes Us Distinct vs. What
5) Operational Silos Brings Us Together
• Product Management vs. Sales vs. 11) Media/Channel/Touchpoint Silos
Customer Services vs. PR vs. • Attribution Winners and Losers vs.
Marketing and Advertising Portfolio and Synergy Effect
6) Expertise Silos 12) Hidden Silos
• The Creatives vs. the Analysts vs. the • The Boundaries we don’t yet see
Strategists vs….
46The Dozen Silos
1. Objective
A. Bridge the Expertise Silos
2.
3.
Solution
Organizational
• DATA science vs.
4. Generational methodologists
5. Operational
6. Expertise • Secondary DATA vs.
7. Responsibility &
Accountability experimentation
8. Intelligence
9. National
• The Creatives vs. Analysts
10. Cultural
11. Media/Channel/Touchpoint
vs. Strategists
12. Hidden
47The Dozen Silos B. Bridge the Generational Silos
1. Objective
2. Solution • Millennials vs. others
3.
4.
Organizational
Generational • Extensive experience vs.
5.
6.
Operational
Expertise
fresh perspectives
7. Responsibility &
Accountability
8. Intelligence
9. National
10. Cultural
11. Media/Channel/Touchpoint
12. Hidden
48The Dozen Silos C. Bridge the Intelligence Silos
1. Objective
2. Solution • People vs. computers
3.
4.
Organizational
Generational • People and computer
5.
6.
Operational
Expertise
(cognitive computing) vs.
7. Responsibility &
Accountability
robotics and AI
8. Intelligence
9. National
10. Cultural
11. Media/Channel/Touchpoint
12. Hidden
49The Dozen Silos Questions and implications Re Insight #4
1. Objective
2. Solution 1) Objective Silos 7) Responsibility and Accountability
3. Organizational
• Sales and Profit vs. Positive Social and Silos
Cultural Impact • Product/Service Sales Objectives vs.
4. Generational 2) Solution Silos Responsibility and Accountability for
5. Operational • “We need a mobile app” vs. “What Intended and Unintended Impact
6. Expertise problem can we solve?” 8) Intelligence Silos
7. Responsibility & 3) Organizational Silos • People vs. Silos
Accountability • Us vs. Them 9) National Silos
8. Intelligence 4) Generational Silos • Global Efficiency vs. Local Sensitivity
9. National
• Extensive Experience vs. Fresh 10) Cultural Silos
Perspectives • What Makes Us Distinct vs. What
10. Cultural 5) Operational Silos Brings Us Together
11. Media/Channel/Touchpoint • Product Management vs. Sales vs. 11) Media/Channel/Touchpoint Silos
12. Hidden Customer Services vs. PR vs. • Attribution Winners and Losers vs.
Marketing and Advertising Portfolio and Synergy Effect
6) Expertise Silos 12) Hidden Silos
• The Creatives vs. the Analysts vs. the • The Boundaries we don’t yet see
Strategists vs….
50Response
Insight #5
$
Response
x Adopt adaptive
--- ----- experimentation as your
X
X
X business philosophy
$
½x x 2x
51Insight #5
Benefits of Experimentation:
Experiment 1. Learning & Better Decisions
2. Forces Measurement
3. Enhances Innovation
4. Fosters an Innovative Culture
5. Attract and Retain Talent
6. Confuses the Competition
52Questions and implications for Insight #5
Insight #5
Experiment
53Reactions?
Amplifications?
Questions?
• Insight 1: Traditional mindsets, including• Insight 3: Leverage the power of
those about advertising and marketing, content by following the R.A.V.E.S.s
must be challenged and potentially criteria and the power of context by
Applications? changed. following the M.A.D.E.s criteria
• Insight 2: Shift your focus from media • Insight 4: Bridge the deadly silos
mix to portfolios of all touchpoint
orchestration. • Insight 5: Adopt adaptive
experimentation as your business
philosophy
54Reactions?
Action plans,
Amplifications?
including a
key experiment
Questions?
Applications?
55Think like
the best
UX designers,
and as a
disruptor.
5657
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