2007 NEDMAKiller Creative PPT

Why Killer Creative Rarely Works!(Or, Why Ugly Wins): 

Why Killer Creative Rarely Works! (Or, Why Ugly Wins) Grant A. Johnson NEDMA 2007

Slide2: 

“All industry begins with the customer and his or her needs, not with a patent, a raw material, or a selling skill.” Ted Leavitt

Introduction: 

Introduction Changing Face of Marketing Marketing Now Has C-Level Attention “Me” Generation Thinking Internet Direct Marketer’s Advantage

Slide4: 

What’s the purpose of your advertising and marketing?

Are the times a’changin’?: 

Are the times a’changin’? “I’ve never seen things changing as much as they are now.” Rance Crain, editor-in-chief, Advertising Age

Marketing Shift: 

Marketing Shift Then Campaigns Lists Broadcast Monologue Groups & Segments Intermittent Contact Promotional Involuntary (opt-out) Now Programs/Relationships Integrated Customer Databases Interactive Dialogue Individuals Sustained Contact Informational, educational, entertaining & promotional Voluntary (opt-in)

Media Options: 

Media Options Then Print PR Broadcast Telephone Mail Face-to-face Now Print PR Broadcast Telephone/Cell phones Mail Face-to-face Internet, Intranet, Extranet E-mail Websites/Microsites SEO Blogs E-newsletters Product placements

Further Proof: 

Further Proof Ringtones TV Networks Fragmentation Google and YouTube merger New Blog created EVERY second

Today, 6/14/07: 

Today, 6/14/07 Increased demands for marketing accountability Must generate demand/leads/sales 7500 media impressions daily!!! 6-7 meaningful messages needed today BtoB Magazine USA Today

Pressure: 

Pressure C-Level suite NOW views marketing as a P/L function, no longer the older, “expense” model Trackable, testable and measurable a must

Recent Study: 

Recent Study 60% have negative opinion of marketing 61% feel amount is out of control 65% feel constantly bombarded 59% feel marketing has very little relevance Direct Newsline, 4/15/04 and Yankelovich Partners

Direct Response Opportunity: 

Direct Response Opportunity 27% test “occasionally” 34% “seldom” 15% “never” 8% “don’t need to test” Why??? People cited a lack of time & budget *According to Seth Godin ^ Sales Lead Newsletter and Chief Marketer (Primedia)

Prospect Defines Relevancy: 

Prospect Defines Relevancy Search engine words/phrases Site visits Click-throughs Opt-ins Surveys Response rates/conversions Sales

Direct Branding™: 

Direct Branding™ “The convergence of image-based advertising strategies and tactics with those of direct marketing, utilizing both traditional and emerging media to capture market share and sales simultaneously.” Grant Johnson, Johnson Direct

Killer Creative Defined: 

Killer Creative Defined Usually designed and written to win awards “Big idea” based, not ROI based “Intended to increase unaided brand awareness” Homogeneous approach (rule of fragmentation) Goal often to create buzz/W-O-M/viral By example

Taco Bell “Chihuahua”: 

Taco Bell “Chihuahua” First intro 1997 in NE US Nationwide in 1998 Ultra popular ads Pop culture icon 13 million plush toys sold Created by TBWA Chiat/Day $200 million account

Taco Bell “Chihuahua”: 

“After the launch of the first Chihuahua commercial, it became apparent that this spot was creatively right on the mark. It was able to connect with our target market while at the same time being broad based enough to speak with the entire market as a whole.” Clay Williams, co-creative director, TBWA Chiat/Day, December 29, 1997 Taco Bell “Chihuahua”

Taco Bell “Chihuahua”: 

In 1999, Taco Bell and TBWA/Chiat/Day were awarded two Gold Effies and The Grand Effie for breakthrough advertising Effie is awarded by the American Marketing Association in recognition of the most effective advertising campaigns that have delivered superior marketplace results Taco Bell “Chihuahua”

Taco Bell “Chihuahua”: 

“The Effie is the most significant award in the advertising industry because it honors the only truly significant achievement in advertising—RESULTS.” Taco Bell Press Release, July 12, 1999 Taco Bell “Chihuahua”

Taco Bell “Chihuahua”: 

Taco Bell “Chihuahua” The Real Results… 1999 sales flat Same store sales down 6% in Q1 & Q2 2000 “Chihuahua” campaign ends July 2000 Decision of new Taco Bell Chief Concept Officer, Emil Brolick, who started July 2000

Taco Bell “Chihuahua”: 

Taco Bell “Chihuahua” Did anyone learn a lesson here? “People like the dog. It’s just that simple.” Tom Carroll, CEO of TBWA Chiat/Day, on his disappointment at Taco Bell’s decision, which he believed was a mistake

Taco Bell “Chihuahua”: 

Taco Bell “Chihuahua” Did anyone learn a lesson here? “It was all about the Chihuahua and you can’t have that. It’s got to be all about the brand.” Emil Brolick, Chief Concept Officer, Taco Bell

Slide26: 

“Media is a contact strategy. Reach and frequency are out of date. Media’s purpose is to communicate with the customer/prospect. Stop being clever. Tell me something I want to know.” Lester Wunderman MEDIA

How they think: 

How they think “Everything Crispin does for a client is with an eye toward gaining media attention for the brand…”

Miller Lite “Man Laws”: 

Miller Lite “Man Laws” Miller chooses CP+B as ad agency for Miller Lite brand (Feb 2006) Miller consolidates advertising from four agencies to one, with CP+B announcement Miller Lite represents 47% of Miller Brewing revenue

Miller Lite “Man Laws”: 

Miller Lite “Man Laws” CP+B has “demonstrated an impressive ability to think in innovative ways across all marketing platforms, and to apply their creativity smartly across emerging and traditional media. “For Miller Lite to continue its strong sales momentum, it’s critical that we develop a clear, consistent and distinct voice for our flagship brand.” Tom Long, CMO, Miller Brewing

Miller Lite “Man Laws”: 

Miller Lite “Man Laws” “…the brand’s continued growth will be determined by our ability to make every dollar spent feel like $100 in the marketplace.” Jeff Hicks, CEO, CP+B

Miller Lite “Man Laws”: 

Miller Lite “Man Laws” The Real Results… Miller reported overall 1% sales decline from Mar 1 to Sep 30, 2006 EBITA declined 12% Miller Lite sales declined ~5%, the first decline after more than two years of sales growth Miller reported it would increase marketing expenditures for Miller Lite

'Man Laws' Benched : 

'Man Laws' Benched

Nissan “Dogs Love Trucks”: 

Nissan “Dogs Love Trucks”

Nissan “Dogs Love Trucks”: 

Nissan “Dogs Love Trucks” Campaign runs from 1996 though 1998 Created by TBWA/Chiat/Day Very popular and memorable ads Mr. K (the Nissan Guy, the Magical Man) becomes a pop culture icon “Drive Happy” “Dogs Love Trucks” “Enjoy the Ride”

Nissan “Dogs Love Trucks”: 

Campaign is a major award winner Called “ground-breaking” Bob Thomas, President and CEO of Nissan Motor Corporation U.S.A., is recognized in Automotive News as an Advertising All-Star Nissan “Dogs Love Trucks”

Nissan “Dogs Love Trucks”: 

Their Results… Ad likeability increased 114% among intenders (intend to buy vehicle within two yrs) 75% gain in top-of-mind awareness Nissan ads best-liked automotive ads Twice the rate of closest competitor, Saturn 55% of people surveyed recognized Mr. K on unbranded photograph 78% then directly linked Mr. K to Nissan Nissan “Dogs Love Trucks”

Nissan “Dogs Love Trucks”: 

The Real Results… Nissan Motor Corporation USA reported a $513 million drop in profits in 1998 Yes, dogs love trucks… Nissan “Dogs Love Trucks” “But we haven’t sold too many trucks to dogs” Michael Seergy, VP & General Manager of Brand Sales, Nissan Motor Corporation USA

Coca-Cola “Mean Joe Greene”: 

Coca-Cola “Mean Joe Greene” Iconic ad for Coke October 1, 1979 Immensely popular Became a 1981 NBC made-for-TV movie called “The Steeler and the Pittsburgh Kid”

Slide41: 

Won 1979 Clio Award Greene won 1979 Clio Best Actor Award Coke mimics ad internationally with other sports stars specific to each market ESPN called ad the best sports commercial of last quarter century Rated as 7th best ad in television commercial history by TV Guide Coca-Cola “Mean Joe Greene”

Why It Fails: 

Why It Fails Universally accepted DM formula 40% Audience/Lists/Media 25% Offer 20% Creative 15% Other

Most Killer Creative…: 

Most Killer Creative… Does NOT seek a response Is NOT measured OR tested, does not begin with an end goal in mind Uses mass-media model of thinking Has NO offer Doesn't understand that a relevant, meaningful message is not defined by the advertiser, but by the customer/prospect

Starbucks: 

Starbucks Lifestyle marketing $5 million annual marketing budget in mid- to-late 1990s (jump-start period) No network broadcast or national print ads Estimated $30 million ad budget now Starbucks considers their stores and employees as best marketing and advertising 2005 revenues of $6.4 billion

Harley-Davidson: 

Harley-Davidson After management buyout in 1981, all marketing dollars were used for customer demonstration rides High customer contact improved the product and nurtured a lifestyle approach to marketing Harley Owners Group (HOG) formed to strengthen bond between employees, dealers and owners 400,000+ dues-paying members

Harley-Davidson: 

Harley-Davidson From 1981 to 1996 Harley Davidson spent $0 on advertising In 1997, the advertising budget was increased to $1 million Lifestyle marketing Own a Harley, become a HOG member, buy the clothes, attend a rally, buy other merchandise… Marketing spend today is $86 million+ 2005 revenues were $5.3 billion

Apple iPod: 

Apple iPod Apple spends an estimated $100 million on iPod advertising Apple 2005 revenues were $13.9 billion

The Real Question…: 

The Real Question… How was the iPod launched?

Commonality?: 

Commonality? Starbucks, Harley and iPod ALL defined by personal relevancy My coffee, bike and iPod is MINE; it helps define “me” Contrast that with Taco Bell, Nissan and Coke campaigns we just highlighted WIIFM???

A “Swinging” Story…: 

A “Swinging” Story… Complex sometimes makes things complicated! Keep it simple first!

Summation: 

Summation Always, always measure and test and keep testing Lose the Mass Market mindset Understand the Customer/Prospect is in control Viral/Word-of-Mouth and PR critical

Slide56: 

“Because it is its purpose to create a customer, any business enterprise has two – and only these two – basic functions: marketing and innovation. Marketing is the distinguishing, the unique function of a business.” Peter Drucker

That’s Why Killer Creative Rarely Works!: 

That’s Why Killer Creative Rarely Works! Grant A. Johnson 262.782.2750 grantj@johnsondirect.com