Communications By Talking To People II: The End of Advertising

In the first post on this topic I talked a big about 'friends vs. fans': "Fans may like a program, channel etc., but ultimately they know that if they switch the channel no one will know, or really care. Friends feel more of a sense of ownership. They feel some responsibility for the well being of the program and they feel that they are participants and part of a larger community - that their involvement and participation are important. Notice the groups I started on MySpace, Facebook etc., are called 'Friends of the CBC'." I think that I need to go a bit further into that because so few people really seem to grasp it, or they think that it's undoable.

First of all I need to say that this will apply to virtually everyone, in virtually every business, not just the CBC and not just in media. Second, if you think it's undoable then chances are your business (whatever it is) is going to be undoable as well - at least if it relies on advertising or marketing. Advertising and marketing, in the sense we know them now, are sinking fast in terms of their effectiveness.

Spend a day in a North American city and count the number of ads you see, be vigilant, there are probably several hundred you wouldn't normally notice - tv ads, radio ads, internet ads, newspaper and magazine ads, junk mail, telemarketing, billboards, buildings and sports venues named after companies, flyers nailed or taped to everything that will hold still, ads in the subway, on the streetcar, even in the bathroom, door to door salespeople, people handing out samples or trying to sign you up for things in the mall and grocery store, ads packed in the envelope with your bills ...

Searching the phrase Advertising Losing Effectiveness on Google and you will get 1,640,000 results. Search the phrase Advertising Overload and you will get 1,850,000 results. Advertisers know this is happening, but rather than collectively cut back on advertising to try to make it more effective and make sure the message gets through, they are going into hyperdrive snapping up ad space anywhere they can find it and even willingly and knowingly breaking the law to try to grab a few eyeballs for a few seconds.

Here are a few statistics from the advertising industry itself:

From What's Your Brand Mantra:

• 60% of consumers have a much more negative opinion of marketing and advertising now than a few years ago
• 61% feel the amount of marketing and advertising is out of control
• 65% feel constantly bombarded with too much marketing and advertising
• 53% of consumers polled said that spam had turned them off to all forms of marketing and advertising
• 36% of consumers polled said that the shopping experience is less enjoyable because of pressure to buy
• 53% said that for the most part, marketing and advertising does not help them shop better.
• 59% feel that most marketing and advertising has very little relevance to them
• 64% are concerned about practices and motives of marketers and advertisers
• 61% feel that marketers and advertisers don't treat consumers with respect
• 65% think there should be more limits and regulations on marketing and advertising
• 69% are interested in products and services that would help them skip or block marketing
• 33% would be willing to have a slightly lower standard of living to live in a society without marketing and advertising

and from BigResearch

Recognizing that the customer is boss is a requirement for success in today's marketplace. Nowhere is this more apparent than in targeting consumers via advertising, especially since 92.5% of them say they are regularly or occasionally avoiding advertising, according to BIGresearch's latest Simultaneous Media Survey (SIMM VIII). Over 15,000 consumers 18 years or older participated in the survey and for those who plan on making a purchase of a durable product, such as a car, computer, furniture, appliance, major home improvement or TV, the number is even higher for avoiding advertising at 93%.

The BigResearch piece goes on to say that when asked consumers top methods of finding out about products were "Word of Mouth" and "Read Article on Product". Needless to say, it will raise the bar considerably on what is commercially viable when commercials are no longer commercially viable. This brings us back to my point. People now find out about new things - whether it be music, a web site, a television program or a blender, toaster or laptop not by advertising but by talking to their friends and doing their own research.

So, for those of you who think building a base of friends is undoable, this is your new advertising. It can't be fake, it can't be bought. You actually have to get to know your customers/audience, you have to talk to them, listen to them and treat them with respect. You have to be open and honest and straightforward and you have to have a good product to begin with (advertising will no longer be able to move a mediocre product). Even with all of that, whatever your industry or niche with all of the different 'channels' out there and the internet tearing down international barriers, the competition for your 'friends' is going to be intense. Ultimately, if your friends don't speak highly of you to their friends, write nice things about you on the internet and bring new friends to your community, no one will ever hear about your great new product (even if it is in fact great).

One of the things I love about Radio 3 is that they honestly seem to get this, but they are very nearly alone. There are a few companies that seem to be catching on, and some indie media people have always understood it, but the vast majority of media (big and small), and the vast majority of companies in every industry haven't got an inkling yet. A few are trying to buy 'friends' (which ultimately won't work either) and companies for years have been pushing 'loyalty programs' but these have become a product in and of themselves, with their own advertising. Not everyone has to really understand all of this though. People go out of business all the time, it won't be anything new.