1. http://www.creativeadawards.com/original/wrecking-ball/11338
EVERYTHING IS BROKEN
THE END OF MARKETING AS USUAL
twitter @johnbatistich

2. “we think that everything is broken & we
throw our computing power at it to fix it”
patrick pichete global cfo google

3. “nearly all of the tools, processes &
philosophies around marketing were
developed more than 50 years ago”

4. 26 May 2010
“we want a one to one relationship with
7 billion customers” bob mcdonald ceo p&g

5. what we learnt is being disrupted

6. time to think different. think big!

7. what’s changing?
3 shifts

8. source: richard watson. picture: john homer
increasing life-spans
declining fertility
skills shortage
cotton wool kids
rise of the screenager
rise in sinks & dinks
increased immigration. higher ethnicity
urban-rural polarisation
smaller households
environmental change
resource shortages rising costs
resource nationalism
carbon economy
increased regulation
peak oil
water labeling
packaging/waste taxes
eco-cynicism
1 billion new mouths
market expansion
product sourcing into aus/nz
services outsourcing
asian values & aesthetics
resource competition
inbound tourism numbers
protectionist backlash?
demographic
power returns east
sustainability

9. 1 accelerator of change

10. 1. ubiquitous mobile connectivity
2. democratisation of production tools
3. access to higher data speed/more storage
technology enabled connectivity
1 billion pcs & 4 billion mobiles
location-based services
mobile & social payments
intelligent vending
3d screens
rising transparency & amplification
increasing collaboration
personalisation
acceleration of everything
hunger for real shared experiences
source: richard watson

11. 26 May 2010
1. technology
2. behavioural change
3. business models
change coming in 3 waves

12. “WE ARE LOSING SHARE OF RETAIL”
“soon…you won’t forget anything, you’ll
never be lost, never lonely, never bored &
never out of ideas” eric schmidt google

13. 1.SHOPPER BEHAVIOUR
accelerated change in shopper behaviour challenging old norms

14. old ways
command & clicks
text & 2d
single task
desk/laptop search & email
ecommerce
store trading hours
national
appointment to view
entertainment & retail
seasonal sales
quality relationships
private
knowledge
new behaviours
touch, voice & gesture
video & 3d
multi-task
social & mobile search
mcommerce & social commerce
shop anytime anywhere
context. service finds you
time shifting
merged in a closed loop
pricing transparency
quantity relationships
public with utility
resourcefulness

15. source: psfk
2.THE LINEAR PATH
TO PURCHASE
the old linear model is being replaced by a network to advocacy

16. See an Ad
Receive
Catalogue
Mail or eDM
Visit
Store
Consult
Sales
Person
Buy
Sign Up
for
Loyalty
card
Contact
Customer
Service
old linear path to purchase
Awareness Consideration Trial Purchase Repeat

17. Acquiring
Using
How does a customer
become aware with your
products or service?
How does a customer gain knowledge about
our products and those of your competitors?
Where do they go to learn and compare to get
the best solution?
How does a customer
transact with your
company? What are the
dynamics of the
purchase process?
How does a customer
take delivery of our
product or service?
What are logistics of
getting it?
How does a customer use our product in daily life?
What do they have to do to take advantage of its
benefits? What are the components of the user
experience?
How does a customer
interact with our company
post purchase? What are the
interactions that promote
loyalty and advocacy rather
than frustration?
Buying
Search
a customer experience chain
Discovery
Relationship

18. 3. INFLUENCE VS PURCHASE
channels of influence are as important as purchase channels

19. where the purchase is influenced matters
50%
$255B
offline
influence
purchase
44%
1%
5%
influence
online
purchase
offline
Influence
offline
purchase
online
online
influence
purchase
total
retail
sales

20. 4. TRADITIONAL STORE
we crave social, physical and instant experiences. online experiences are changing store expectations

21. the store is being re-invented. more
experiential, service, social & integrated

22. seamless experience across
any channel at anytime

23. “WE ARE LOSING SHARE OF RETAIL”
Context is everything
http://www.theage.com.au/technology/technology-news/virtual-shop-perfect-for-the-young-and-upwardly-mobile-20120215-1t6qa.html#ixzz1mZuBOUuz
''retailers need to understand
that online shopping isn't
something we just do at our
desktops any more. we now
do it out in the real world, out
on the streets and often while
we're in-store.‘’ sportsgirl

24. 5. DIFFERENTIATION DELUSION
being different & better only matters if your customer believes & values it

25. your brand is not as
different as you think it is!
80%
8%
ceo customer
source: contagious
Is your brand different?
% Agree

26. 6. DISCOUNT DEVOTION
we are increasingly dependent upon deep discounts training our customers to wait for specials

27. the amount of purchases at discount
is at a all time high & many can’t stop

28. http://arts.brighton.ac.uk/__data/assets/image/0016/6253/Problem-Based-Learning1a.jpg
7. LACK OF TESTING
the world is forever in beta test

29. amazon conducts 200
tests a day to improve
the user experience

30. learn fast, cheap, well & first. place lots of
little bets and scale up the ones that pay off

31. 8. STRONG BRANDS
GET DELETED
brands under threat from shelf space rationalisation

32. “WE ARE LOSING SHARE OF RETAIL”
nielsen estimates private labels
will represent 40 per cent of
packaged goods sales by 2015
http://www.smh.com.au/business/its-war-but-how-low-can-they-go-20111125-1nz6h.html#ixzz1f25svbl5

33. http://cerisereve.deviantart.com/art/Used-Crayons-72200919
9. OVER CHOICE
we need simpler solutions & more involved experiences

34. http://michaelfaber.deviantart.com/art/not-thinking-straight-35033655
in 1997 there were 2 million brands
and now there are 8 million brands
more clutter. more confusion

35. in 2008 the average person’s daily intake of
information was 300% greater than in 1960
university of california san Diego study

36. Source: Sparksheet.com
10. LOYALTY PROGRAMS
too many complex reward programs with low value creating reward fatigue

37. the world doesn’t need another hard to
understand low value reward program
Spend $15.7K at Coles on FlyBuys or spend
$11K at Woolworths to get a $50 voucher

38. Source: impetuoussoftware.com
11. DATA DELUGE
making sense of the increasingly available behavioural data is the new gold

39. most marketing departments are not
prepared to make sense of the single
view data that is rapidly becoming
available about their customers

40. 12. RESEARCH REACH & CLAIM
majority of your audience are out of reach. you are what you do not what you say
http://www.theatlantic.com/magazine/archive/2013/03/anthropology-inc/309218/

41. “you only get to talk to about 10% of the population
via traditional online market research, so what about
the other 90%? Who wants their evening interrupted
with a phone call from a research agency” Peter Harris

42. we make
decisions on
claimed not actual
behaviour. who
can accurately say
how often they
have seen an ad or
purchased a
product in the last
4 weeks?

43. 13. EDM INVOLVEMENT
http://www.fullissue.com/index.php/email.html
volumes are up but open rates & click through rates are declining

44. why do 79% of members don’t even open
your email? & it’s getting worse!
Source: Responsys

45. 14. CPM FOR TV ADVERTISING
http://www.digitalproductionme.com/article-1135-middle_east_tv_ad_revenues_to_buck_downturn/
your audience is not as high as you pay for!

46. 80
viewership of ad breaks can be 10%-
35% lower than the program you buy
Source: ikon

47. SO THINK ABOUT…
15. MOBILE FIRST
design for mobile…the most powerful technology of our generation

48. “our coordinates, has the potential to
change all the outputs…where we shop,
who we talk to, what we read, what we
search for, where we go, they all change
once we merge location and the web”
matthew honan wired magazine

49. access reviews, pricing, content,
community & buy anytime anywhere

50. mobile payment systems
change the pos & banking

51. yet more than 50% of websites
are not mobile optimised

52. 16. ECOMMERCE
CONVERSION
value, range & convenience driving online sales but conversion is extremely low

53. different conversion by channel
online
conversion
good store
conversion
92%
30%
2%
mall
conversion

54. why the high online cart abandonment?
online cart
abandonment
store cart
abandonment
<1%
65%

55. http://www.shutupitson.com/tag/mad-men/
17. MEDIA AGENCY DEALS
channel agnostic, complete disclosure transparency & total accountability

56. media agencies who commit to future
investments with media owners before
understanding their clients needs

57. media agencies generating undisclosed
rebates from media owners

58. 18. THE AD AGENCY
new models forming for social, digital, video & mobile channels

59. agency resources measured on inaccurate
time sheets vs value/outputs

60. Source: webzbranding.com
resourcing digital channels that are more
intensive, reiterative & measurable

61. the creative director role will evolve
from creator to curator because no one
person has a mortgage on creativity

62. http://steja007.deviantart.com/art/HD-wallpapers-part-2-104834273
agencies will collaborate more, shift to
projects over campaigns & create ideas
that are born to live in beta (social) not
built to die (media schedules)

63. 19. PRIVACY CONCERNS
all notions of privacy are being traded for personalised utility
http://www.google.com.au/imgres?q=cyber+privacy&start=164&hl=en&tbo=d&biw=1680&bih=909&addh=36&tbm=isch&tbnid=F5
xmDMtUU7zoeM:&imgrefurl=http://www.ngcicommunity.org/wiki/index.php/Trust_and_Privacy&docid=mCXt2uOUvkUpLM&imgur
l=http://www.ngcicommunity.org/wiki/images/thumb/0/0e/CyberSecWithLock_small.jpg/350px-
CyberSecWithLock_small.jpg&w=350&h=263&ei=WUWtUKHlG-
b3mAWKv4DwBg&zoom=1&iact=rc&dur=468&sig=117778829446237125984&page=4&tbnh=136&tbnw=181&ndsp=58&ved=1t:
429,r:56,s:164,i:92&tx=131&ty=91

64. Source: Accenture
retailers must offer control, relevance &
value in exchange for consumer information

65. 20. ADVERTISING BRIEFS
ignored uninspiring briefs replaced with a business challenge

66. “we're getting rid of the creative brief after we asked
our agencies to be honest about whether they used
them or not. they said they basically ignored it.
rather than offering their best work, creatives focus
on trying to give you what you want. instead, we're
now giving creatives a business challenge” p&g

67. 21. CREATIVE FEEDBACK
the quality of the feedback & relationship supports great work

68. http://sharpsuits.net/#Home
you get the creative work your deserve

69. 22. ACTIVE INVOLVEMENT
IN SOCIAL NETWORKS
too often, acquisition is the key focus but active involvement is where the real value is…

70. 97.4%
2.6% active: like, post or comment
passive or do nothing at all
why acquisition over involvement & value?

71. how do you get your community active?

72. http://www.noupe.com/inspiration/stunningly-creative-and-unforgettable-print-ads.html
23. CRISIS MANAGEMENT
listen, shape & respond with speed & transparency

73. “consumers have
something they
have never had
before, the power
to warn &
threaten, rather
than to punish
silently after the
fact” bruce philp consumer republic

74. 24. ATTRIBUTION
understanding the value of a customer remains the holy grail

75. for every $1 spent online with
macy’s led to $5.70 in-store

76. 418% more likely to visit startbuck.com
spent 8% more. transacted 11% more frequently
are they pre-existing preferences?
source: comscore

77. fans are more valuable
spending $159 more per year
http://www.google.com.au/imgres?q=mcdonalds+facebook&um=1&hl=en&sa=N&biw=1920&bih=1019&tbm
=isch&tbnid=0v3-Z2BKm1XWhM:&imgrefurl=http://blog.hudsonhorizons.com/Article/Facebook-is-the-
McDonalds-of-Social-Networking-Infographic.htm&docid=92-B7tkw3-
lxWM&imgurl=http://www.hudsonhorizons.com/pub/images/facebookmcdonaldssocialnetworkinginfographic
s.jpg&w=274&h=263&ei=aDZET97fLerkmAWRtJnYBw&zoom=1&iact=hc&vpx=1152&vpy=148&dur=327&h
ovh=210&hovw=219&tx=122&ty=126&sig=111856002902335195116&page=1&tbnh=151&tbnw=154&start
=0&ndsp=45&ved=0CFcQrQMwBQ
source: syncapse

78. 25. REFLECTIVE THINKING
http://my.greasy.com/cgi-bin/blogapp/img.cgi?image=32367767.jpg
we are losing the ability to think in a deep, creative ways, which is affecting our decision making

79. “teens were faster than adults at
reading online but their attention
spans were much shorter, so anything
difficult tended to be skipped” jacob nielsen

80. “always on, information overload, multiple-
tasking work environments are killing
productivity, attention fragmentation,
dampening creativity and making us unhappy”
mckinsey report june 2011

81. source: psfk
20 IMPLICATIONS
asking the right question is the first step for change

82. 26 May 2010
1. understand the changes in your customer journey in terms of influence & purchase
2. location matters. shift your digital gravity towards mobile
3. determine the utility connecting content & channels for customers
4. optimise your website for mobile then design for it
5. track the interaction of your social communities & identify value
6. review your real TV audience and then negotiate on your ad audience
7. focus on activating of your edm databases
8. simplify your loyalty program to create real value
9. review your data analytic capability & tools
10. change the focus of your research towards behaviour
11. set aside 10% of your budget for testing
12. personalisation is the ultimate form of membership
13. evolve towards a social business design
14. don’t use meaningless words like engagement & activation
15. ask your media agency about undisclosed rebates
16. renumerate your agency on outcomes not time
17. find another way to brief your agencies. inspire with a problem not a brief
18. carve out time for reflection & learning
19. conduct market experiments to model channel attribution to guide future choices
20. define what you need to stop, start & continue to free up capacity to innovate

84. westfield study tours
morgan stanley
ellie rogers of ikon
david whittle of m&c saatchi
anouk darling of moon
michael batistich of we are social
peter harris of vision critical
jon bird of ideaworks
best buy slideshare
richard watson
youtube
google & google images
flickr
techcrunch
mumbrella
emarketer
smart company
inside retail
psfk
mckinsey quarterly
contagious

85. @johnbatistich

86. http://www.creativeadawards.com/original/wrecking-ball/11338
EVERYTHING IS BROKEN
THE END OF MARKETING AS USUAL
twitter @johnbatistich