A Blog and Forum by Nigel Hollis


The Advertising Research Foundation Annual Conference is one of those events I love to hate. I look forward to catching up with old friends and acquaintances, hopefully making some new ones, and maybe, just maybe, learning something new. The trouble is, it is not easy to focus on the content when parallel presentations are spread across numerous different rooms and alcoholic beverages are readily on hand. The following is some wheat that I managed to sift from the chaff of interminable sales pitches dressed up as new learning, vendors acting like old-time snake oil salesmen, and people seeking to exploit our collective insecurities by suggesting that all we know is no longer valid.

Since I have been heavily focused on the topic of brands and the practice of branding over the past six months, it is not surprising that the presentation that stood out most for me was focused on the nature of brands.

Titled “The Involved Consumer: How brands invite customers to co-create, innovate and participate in social media, and why those people accept,” this presentation was given by Farrah Bostic and Steve Pagan of Hall & Partners. I would sum up their presentation as follows:

  • While digital media facilitates new behaviors, human nature itself has not changed.
  • What the new media have done is allow brands to hear more clearly what people have to say.  
  • People still want what they have always wanted from brands: functional benefits and emotional rewards.
  • Instead of pushing people to participate – like a game show host encouraging reluctant participants – a brand should deliver on its basic promise first. Participation will follow.
  • They suggest that the successful brands of today are like gardeners who visualize what they want to achieve and carefully shape, nurture and prune to achieve that goal.

If the first four points sound familiar to readers of this blog, they should - but I am pleased to hear others express similar ideas. And I think the gardener analogy is a good one, since it implies vision, understanding and an element of control.

By coincidence, the presentation that preceded the one by Farrah and Steve also caught my attention. Graeme Hutton and Tom Smith of Universal McCann provided a new view on the developing world of social media. It seems the United States and Europe lag behind the rest of the world when it comes to the penetration and active use of social media among Internet users (click here to see the review of this presentation by Mark Walsh at the Online MediaDaily).

In the discussion following the presentation, Graeme and Tom suggested that the difference in social media participation was due to the presence of additional media choices in the United States and Northern Europe. On reflection I am not convinced by that explanation. It seems more likely that because internet penetration is lower in the developing countries, the proportion of early adopters among those online is far higher (more like the U.S. Internet population of the mid-90s than today).

David Kenny of Digitas offered some great examples of digital brand engagement in his presentation. I was intrigued to note that he did not seem to espouse the traditional “let go” mantra, even if he did come over big on the notion of listening to what people who love your brand have to say about it.

In particular he advocated reading the raw material—the stuff people post on blogs and message boards—to understand people’s personal stories and opinions. Then he suggested finding ways to amplify and disseminate the most motivating ideas, either directly or indirectly, in highly-targeted online communication.

In the process of illustrating these principles, David introduced many of us to Miller Sparks, a malt beverage that includes caffeine, taurine, ginseng and FD&C Yellow #5. Thanks largely to the last ingredient, drinking this beverage leaves the drinker with an orange tongue (among other side effects, no doubt). Noticing that many photos on Flikr and elsewhere featured people sticking out their orange tongues, Digitas built the brand’s communication around it. Check out the refreshingly different site, designed to connect to the all-night party crowd. Maybe next year we will have Sparks available at the President’s Reception.

Some general observations gleaned from all the presentations and exhibitors are as follows:

  • Like many others, Gian Fulgoni of ComScore pointed to the fact that while 17 percent of the U.S. population’s time is spent online, only 7 percent of U.S. ad dollars are spent there. Everyone seems to think that this is because marketers are slow to adopt the medium. Maybe an alternative explanation is that the medium is just not well-suited to advertising?
  • TV is not dead. I must have heard half a dozen people say this over the course of three days, but only Alan Wurtzel, NBC Universal, seemed really happy about it. He also suggested that DVRs have not proven to be the industry killer they were expected to be. (Go figure!)
  • Emotion is the new engagement - at least as far as selling services is concerned. I was pitched on brain measurement, eye measurement, metaphors and more, all dressed up to capture those elusive emotions. Those presenting these approaches claimed that they make good on the deficits of asking people questions, although no one I saw actually proved their assertion with comparison to in-market behavioral response. I did learn, however, that Cannes winners appeal to the emotions and Effies winners are more cognitive – but more on this topic next week.

If you attended the conference, please share your thoughts too. I am sure I must have missed out on some really interesting ideas and presentations. If so, please do add your review as a comment below. Thanks.



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7 Responses to “My brain on re:think (or is that rehab?)”

  1. Simon Says:

    Hi Nigel

    Currently in the UK, DVR households actually see more commercials than non DVR households - their higher volume of television viewing outweights the small proportion of ads fast-forwarded through. Of course, one could argue that people with DVRs are early adopter TV-centrics who would have had a higher propensity to view before their purchase, but that muddies the nice picture we currently have.

  2. Nigel Hollis Says:

    Hi Simon, thanks for the comment. Yes, the same finding applies here as discussed in this post. Plus you have the fact that simply fast forwarding makes people focus on the ads more than they would otherwise. Cheers, Nigel

  3. gian fulgoni Says:

    Hi Nigel:

    It was nice to see you again at the ARF conference last week.

    I’m surprised to see you provocatively suggest that “the Internet may not be well-suited to advertising”. I can’t find the date of your posting but I have a sneaking suspicion it was April 1 :)

    At comScore, we’ve conducted many studies that prove the efficacy of online advertising. In fact, an article focused on that topic and authored by Magid Abraham, comScore’s CEO, has been published in this month’s Harvard Business Review:

    Search activity is a particularly fertile ground for online advertising. Consider the following statistics from a study we conducted for Google in 2006. Of those consumers that conducted a search query using a keyword that was relevant to the computer / consumer electronics category, 25% bought a product in the category in the 90 days following their search. That’s a huge conversion rate. Clearly, search provides an advertiser with the opportunity to provide information that is relevant and important as a precedent to consumers’ buying decisions. It’s hard to imagine a better context in which to advertise one’s product.

    All of that said, I would bet that over the next few years we’ll see the emergence of new ways to advertise on line. I don’t think the issue is whether advertising works online, but rather what’s the best way to maximize the impact of the medium.

  4. John Dawson Says:

    Simon & Nigel - re your comments on PVR’s and the claim that people with them watch more advertising, are you both certain that this is indeed the case. The evidence I’ve seen is certainly questionable and from my non-scientific pub conversations, none of the people i’ve asked who have this technology appear to think they watch more advertising? I will concede that everybody likes top & tail ads around programmes (such as sponsorship) because it provides a great marker for fast forwarding. Any research on this that you’ve seen?

    Re online - you are correct about the old 7%/17% argument. Doesn’t this just show the relative value / impact from a passive vs active medium!

  5. Nigel Hollis Says:

    Hi Gian,
    Good to see you too. No, it was not April 1st when I wrote the post.
    Obviously “online advertising” covers a multitude of different forms (one reason it does not attract its “fair” proportion of the ad budget). Search is undoubtedly effective, even if it is also highly dependent on upstream priming from other brand communication. Some display advertising is effective and some not - the next post will feature one that I believe undermines the brand it is intended to promote. However, as comScore itself reported, a heck of a lot of people that click on online ads are willing to click on anything they see and we still don’t have an effective model for advertising on social networks. I am sure that new ways of advertising will be created but I do wonder whether the nature of the medium, where people are actively in control of content (John’s point), means that every aspect is created equal when it comes to ad effectiveness.
    By the way, I found the fact that you were promoting online as a forum for brand advertising rather than direct response a highly amusing case of deja vu. How many years is it since the HotWired Ad Effectiveness Study argued the same thing? Almost 12 years and we are still arguing the same point!
    Hi John, I am as certain as I can be given the available evidence that these people attend to the same amount of advertising, in part because they watch more TV overall. People have always said they do not pay attention to advertising, even though there is plenty of evidence to the contrary! I think there are three things going on:
    1) Early adopters tended to be those who love TV or have a lifestyle that means time shifting offers a significant advantage.
    2) Studies of reported and measured behavior suggest most content is watched live. People watch their favorite program live and then watch their second most favorite time shifted.
    3) Data from MB studies and others suggests that even when people do time shift their heightened attention to what is shown on the screen triggers memories of ads seen under regular exposure conditions.
    Unfortunately I have not seen any research on top & tail ads, that I remember, but I am sure this would boost effectiveness.
    Thanks both,
    Nigel

  6. Simon Says:

    John - BARB and Skyview data do seem to show that PVR/DTR households watch more TV than the average household, and that the majority of this viewing is live.

    But as Nigel points out, these people are likely to be early adopters with higher-than-average consumption. Whether they see more advertising post DTR purchase compared to prior, I do not know…

  7. Nigel Hollis Says:

    My memory suggests people who have a DVR watch more TV than they did before getting one. This post by Brent Evans summarizes some recent findings.

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