Ad groms presentation

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ADVERTISING TO PRIMATES

Monday, 17 October 2011

Why advertise?


“Properly practiced
advertising MUST result
in greater sales more
economically achieved.”
- Bill Bernbach


DETERMINING THE EFFECTS OF ADVERTISING

The naive approach
The media approach
The creative approach
The economic approach
The psychological approach


WHO INFLUENCES MORE MARKETERS TODAY?

Daniel Bernoulli Mark Zuckerberg
(8th February, 1700 to 8th March, 1782) (b. 14th May, 1984)


WHO INFLUENCES MORE MARKETERS TODAY?

“Rational consumers
make decisions based on
the expected outcomes
of their decisions”*

Daniel Bernoulli
(8th February, 1700 to 8th March, 1782)

*Source: Exposition of a New Theory on the Measurement of Risk, 1738


“Economists, and other social scientists with an interest in decision-
the difference between the
making, have found that
rational model (how decisions ought to be made) and the
real world (what decisions are made) is so signiﬁcant
that rational models are of little use”

*Source: http://www.gresham.ac.uk/lectures-and-events/why-do-people-play-the-lottery-make-up-your-mind


NEW INSIGHTS INTO...

COGNITION
&
BEHAVIOUR


1. What people are really like
2. How people really choose brands
3. How communication really works
4. Implications for doing your job


1. What people are really like


A SIMPLE TEST TO MAKE SURE YOUʼRE AWAKE!

A bat and a ball together cost $1.10.

If the bat costs $1 more than the
ball, how much does the ball cost?


HISTORIC VIEW OF THE BRAIN

The “rational mind
fallacy”
Supremacy of reason
Emotions are
dangerous and need
controlling


20TH CENTURY DEVELOPMENTS

Mind as computer


DAMASIO’S DISCOVERY

“A brain that canʼt
feel canʼt make up
its mind”


IN OTHER WORDS...

Reason and emotions are linked

The thinking brain depends on the
emotional brain

Emotional processing, not reason,
dominates our decisions


Emotion = master

Reason = servant


WHY ARE EMOTIONS THE MASTER?

“When evolution was building our
brain, it didnʼt bother to replace all
those emotional processes with new
operations under our explicit control.

The result? The uniquely human
parts of the mind depend on the
primitive mind underneath”
The Decisive Moment, Johan Lehrer


EVOLUTION


LEARNINGS FROM LT. COMMANDER RILEY

Much of what we “think” is really driven by our
emotions

Every feeling is really a summary of
unconscious data

Feelings are an accurate short-cut... a
compression of decades worth of experience


WHATʼS THE RIGHT ANSWER?

A bat and a ball together cost $1.10.

If the bat costs $1 more than the
ball, how much does the ball cost?

The ball is 5¢
The bat is $1.05


TWO SYSTEMS

System 1 System 2
“Intuitive / Emotional” “Reasoning”

Honed by evolution Still in beta
~100,000,000 years old ~100,000 years old (?)

Automatic Controlled

Fast Slower

Non-conscious Conscious

Non-verbal Verbal

Drives decision making Can think, but canʼt decide

95% 5%


IN SUMMARY


LIKE HOMER, WE FAVOUR THE LEAST LINE OF RESISTANCE

Cognitively and behaviourally!


SYSTEM 1 HEURISTICS LEAD TO COGNITIVE BIASES

Bandwagon effect Framing Neglect of probability
Base rate fallacy Hyperbolic discounting Normalcy bias
Bias blind spot Illusion of control Not Invented Here

Congruence bias Impact bias Omission bias
Choice-supportive bias Information bias Outcome bias

Conﬁrmation bias Irrational escalation Planning fallacy
Contrast effect Just-world phenomenon Post-purchase rationalization
Déformation professionnelle Loss aversion Pseudocertainty effect

Denomination effect Mere exposure effect Reactance
Distinction bias Money illusion Restraint bias

Endowment effect Moral credential effect Selective perception
Experimenter's or Expectation Need for Closure Semmelweis reﬂex
bias
Neglect of probability Status quo bias
Extraordinarity bias
Normalcy bias Von Restorff effect
Information bias
Not Invented Here Wishful thinking
Irrational escalation
Omission bias Zero-risk bias
Focusing effect
Outcome bias


AVAILABILITY HEURISTIC

Risk assessment by feeling not facts

Recency and salience versus
incidence

So fear of fear of plane crashes
higher than fear of skin cancer from
sunbathing

The emotional brain prevailing over
the rational


SUMMARY

1. Human beings make
decisions primarily on
emotions and then post-
rationalise their decisions


2. How people really choose brands


SHOPPING IS COMPLEX & OPEN-ENDED

Buying decisions cannot be made algorithmically

We are always assessing brands unconsciously.

Long before we choose, system 1 has short-listed
factors & options.

When we come to choose, feelings & intuitions
guide our thinking.

System 1

System 2

Cross-checks & ﬁnalises the
decision.

Thought can challenge & re-direct
system 1

But post-rationalisation is more
common.


DECISION STATES

System 1 System 2
When decision is complex When decision is simple

In early phase of decision In ﬁnal phase of decision

For regular purchases When we buy for 1st time

When products are similar When products are functionally different

For cheap items For expensive items

For low risk items For high risk items

For impulse purchases For considered purchases

Time poor Time rich

When we are highly aroused When we are calm

When we are not paying attention When we are paying close attention

When we are happy? When we are grumpy?

Try and think of a purchase that is pure System 2

3. How communication really works


EFFECTIVE COMMUNICATION

Appeal to emotions / feelings not logic / reason

How we say things may be much more important than what we say

This includes; humour, gesture, etc!

Communication may inﬂuence us without us consciously being
aware / thinking

Changing our minds / teaching new things, not easy tasks for
communication


PROBLEM IS...

Rational mind fallacy

Rational message fallacy


TYPICAL QUESTIONS

What is the main message of the communication?

What is the single-minded product proposition ?

How believable is this message?

What is unique about this message?

What are the supporting reasons to believe?

How likely is this ad to persuade you to buy the product?


SONY BRAVIA

Objectives:
Create an emotional attachment that
justiﬁes the Sony price premium

Encourages consumers to commit to
the brand before they reach the point
of sale

Help Sony retake the number one
position in the ﬂat screen TV market.

Rational approach
“Superior colour definition”


SONY BRAVIA

Results:
Bravia-advert.com had 2m visitors /
1.8m TVC viewings in the 3 months
after launch

Est. 5.3m viewings on Google Video,
YouTube and others

Sales resulted in product shortage
(UK); orders in Dec 05 delivered in
March 06

Sony’s LCD MS grew to 14 % (vs
10%, EU)


ITʼS NOT WHAT YOU SAY…
Content = message or the “communication”
Typically; clear, recognisable, easily analysed,
rational (and fades quickly!).

Rel
Content

Relationship

Relationship = non-verbal or the “meta-
communication”
Typically: subtle, hard to analyse, highly
emotional (and endures!).


Associations? Take out?
Spectacular Simply “the best”
Original Worth paying more for
Gorgeous Desire
Mesmerising
Lovely music


SUMMARY

1. Human beings make decisions
primarily on emotions and then
post-rationalise their decisions

2. Communication is not just
about message but about
relationship


... important


MAN IS A COMPULSIVE COPIER

“We are a WE species
that thinks we are a
ME species”


COPYING IS INVALUABLE TO HUMANS


BUT COPYING CAN LEAD TO PROBLEMS

Are your friends making you fat?
Or keeping you slender?

According to new research from
Harvard and the University of
California, San Diego, the short
answer on both counts is "yes."


SOCIAL LEARNING FROM BIRTH


COPYING CONTINUES THROUGHOUT LIFE


Social learning, not
independent decision-making


SIX DEGREES OF KEVIN BACON


SUMMARY

1. Human beings make decisions
primarily on emotions and then
post-rationalise their decisions

2. Communication is not just
about message but about
relationship

3. Decision making is a social
rather than an individual process


SUMMARY

Talk to the heart

Itʼs not what you say,
but how you say it

Make your clientʼs brand /
product famous


A CONTROVERSIAL POINT OF VIEW!

We all recognise the importance
of creative style and emotional
resonance, but we tend to think
of these things as a means of
getting the message across.

This new viewpoint
suggests that, to a large
extent, style and feel
are the message!


4. Implications for doing your job


This means that we
may well have to
rethink pretty much
everything we do in
our day to day jobs...


BUT THE GOOD NEWS...

We will all be happier because we prefer
making this sort of communication

The public will be happier because they like
this communication better too

CEOs/CFOʼs will be happier because their
businesses will be more successful


OVER TO YOU...

HOW DOES THAT MAKE YOU FEEL?

WHAT MIGHT THE IMPLICATIONS BE?

For the brieﬁng and creative process?
For research and evaluation?
For media and channel usage?


MY THOUGHTS (FOR WHAT IT’S WORTH!)

Deﬁne the advertising goal as being to build ‘saleability’

Stop talking. Mostly about messages.

Start talking about associations and about relationships.

Recognise the power of implicit communication.

Shift your focus away from the abstract message or idea to the advertisement as a whole.

Resist the urge to over-analyse and over control.


How exciting to be back
at the beginning again,
knowing absolutely
nothing...


TITLE TEXT

THANK YOU

ABOUT.ME/DAVIDWARREN


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