The humble role of advertising?

I sat in a presentation some weeks ago about the effectiveness of newspapers. InBev, BrandScience and Nielsen presented their findings on the ROI of newspaper advertising. All of them used econometric models to demonstrate the value of newspapers (otherwise they would not have been invited to do their presentation). The presentation pointed out some stimulating data. BrandScience used a database of 200 cases including newspaper campaigns, the average Revenue Return on Investment ranked as follows: inserts topped the list followed by newspapers, magazines, radio, online, direct mail, outdoor, television sponsorship and television.
A case study on the support for the Jupiler Blue brand showed also the superior ROI of the combination of newspaper and outdoor advertising. The result mentioned a poor 8,8 % - 9,8% contribution of advertising to total sales of the brand.
In driving back to the office I thought about two things: one, where does the creativity of the ads gets into the equation? What is the role of the Cannes Advertising Festival and all other creativity awards, when everything can be modelled without taking into account creativity. In a world of product parity, creativity and design can call for premium prices and consumer interest. And two, when advertising contributes less than 10% to total sales, is that because we do not spent enough time, money and energy on creativity and design? The jury of the Effie Awards will be able to judge whether we have used the right mix of econometric modelling and creativity. If not we probably should be more humble about our role as communication specialists.

Creativity the new driver of the economy?

Countries start to understand the importance of the creative industry. Richard Florida's book on the Creative Class did motivate the Flemish government to launch Flanders DC. This initiative inspires companies to integrate creativity in their business.
The Dutch Association of Designers (BNO) is supported by the Ministry of Economic Affairs in its activities to promote Dutch design abroad. Visits and presentations are done in various countries to present the specifics of Dutch design.
The British government launched a program to support the creative industry, that accounts for 7,3% of the GDP and employs over 2 million. As the sector has grown twice as fast as the rate of the economy the government is eager to capitalise on the sector. The creative industry should become mainstream of economic and policy thinking and should start with providing children creative education. Many other activities should lead to the position of Britain becoming the creative hub for the world.

Mind mapping with Tony Buzan

I was invited by Gino Togni of IMS to attend an interactive session with one of the worlds promoters of mind mapping: Tony Buzan. This 65 years old energetic and gifted Englishman is one of the best presenters on a hugely interesting subject of brain functioning and learning. His full-day workshop covered insights in how our brain functions and also on how we can best describe what we hear or read by presenting it in a mind map. A visual description of the information makes it stay longer in your brain. He did not refer to how that relates to obtaining information via audio-visual, electronic or print media. Probably an interesting subject for a research project.
In the meantime media are already using the technique of mind mapping and showing it in ads to illustrate for example the profile of its radio listeners.

Systematic creativity?

I joined a workshop about creativity thinking some days ago and became quite impressed. I'll explain you why. The Israeli company SIT developed a methodology for creating innovative ideas based upon the idea that innovations share a certain pattern. (The basis for this thinking comes from a Russian engineer who analysed thousands of patents). Starting as a tool for engineering Systematic Inventive Thinking has now become a tool to the advertising world. It identifies five ways of thinking that explain 70% of all successful innovations. Innovation and creativity can for example be achieved by taking away certain product features, or by combining some. In doing so SIT follows five principles of which "form follows function" is probably the best known.

SIT analysed winning advertising Print campaigns at the Cannes Advertising Festival and came to the conclusion that in 2000 77% could be explained via a SIT tool. In advertising ten creative techniques like extreme result, metaphor, inversion or extreme promise are used to present products. Winning Print campaigns use in 38% of the cases extreme result as technique. Not only does SIT help to be creative and innovative it also helps in analysing creativity. I find it a most helpful tool in my work.

Will print media create blue oceans?

Last week during the International Marketing Congress in Belgium I listened to the presentation of Professor Chan Kim on the concept of Blue Ocean. For those who are not familiar with this concept, it is based upon the idea that instead of competing head-to-head with rivals companies make them irrelevant by defining a new market space. And this new market space is like a Blue Ocean, in comparison to the Red Ocean that is coloured red through the bloodshed of heavy competition.
It would be interesting to see how this strategy applies to the media world. Consumers have become more selective and advertisers even more focussed on accountability, which makes it for players in the media market even more diffcult to survive. The entire media industry is in great flux and it will take time and quite some courage to make the necessary changes and strategic moves. Technology is defining the pace and the direction of change today; the web 2.0 defines where we go today, not Mr. Murdoch. The billboard industry in the USA is flourishing because of the integration of the traditional and new media; publishers are trying out different models of integration and so do TV channels. Will content in the future be a branded product and delivered via different channels owned by independent media companies or will consumers get and organise the news? News covered in print, on the web, on TV, on your PSP, on your mobile. Will the consumer survive this "always on" society without a media-free space? Will the medium still be the message or will the branded message take over the role of the medium? It is time for business and communication visionaires, sociologists, marketeers and psychologists to give their input and develop strategies that will create this blue ocean.