The Planning Lab

Modern advertising

Cz

The future for creative services looks bright. But I don’t mean that in a positive way.

These days consumption of brands start before they been paid for. Some academics even say that creating and consuming expectations is what everything is about.

In the pursuit of breaking through message clutter have gone so far that the distinction between what’s actually sold and what’s being advertised is becoming increasingly unclear. In the borderline between promise and delivery, new and innovative methods, formats and strategies have evolved. Today, there’s an inflation in added-value services, content, entertainment, experiences, utilities and other stuff that’s still considered as advertising.

This path is easy and intuitive for companies to follow. But since the border between promise and delivery is blurred, there’s a risk of value distribution from company to consumers. No matter how we define advertising, it must create value in the long run, and not distribute it. In other words, advertising must make the product (defined as the thingy people pay to own) more attractive.

Consumers are winners in a marketplace where lots of nice things is given away, but in the long run, this becomes a transaction cost not only for companies, but also for consumers, who have to spend more time in a cloud of marketing in order to choose the product they want to buy.

Wii748030
No content-driven utility branding needed to sell this box.

For markets to be effective and efficient, brands need to be distinct and their products so great that people actually want to pay an extra buck for them without the need for value-distributing advertising.

So, what can a company do if it isn’t Apple, BMW, Starbucks or Google (companies with great products and no need for mind-blowing advertising)?

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I think we’ve found a new product.

First, make sure your product doesn’t suck. If it does, spend your advertising money on R&D instead. If you have an ok but still undifferentiated product, make sure your brand communications makes the product better and more valuable, and thus on the right side of the bottom-line rather than just being hot air. Something that’s easier said than done in our line of business.


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