L2inc.com video published Mar 1, 2018: Forget about traditional advertising, here's where you should be investing your advertising budget instead.
Google and Facebook dominance forecast to rise | ft.com: "Tech duopoly to account for 84% of online advertising spend this year, forecasts report." Editor's note: But how effective is it?
source: Statista
Auto-generated transcript via YouTube.com:
00:01 this week a summary of the first few
00:04 classes in my brand strategy course so
00:06 loosely speaking think of a brand as all
00:09 the touch points that create emotional
00:10 and tangibles surrounding a product
00:13 there are three basic categories or
00:16 three basic ways to build a brand
00:17 there's pre-purchase purchase and post
00:20 purchase pre-purchase advertising public
00:23 relations the things we typically
00:25 consider brand building purchase where
00:27 you actually buy the product
00:29 distribution in the store and then post
00:31 purchase loyalty programs customer
00:34 service warranties what do we see
00:36 happening pre-purchase which has been
00:38 massively over invested is in structural
00:41 decline why because advertising stocks
00:43 and the advertising industrial complex
00:46 is collapsing young wealthy people ie
00:48 anybody a brand wants to reach have
00:50 decided to opt out of advertising which
00:52 has become the tax that the poor and the
00:55 technologically illiterate pay what does
00:56 this mean for you it means if you're a
00:58 brand you need to reallocate capital out
01:00 of pre-purchase into purchase or post
01:02 purchase so we take that capital out of
01:04 pre-purchase which is the Ricky move and
01:07 brand strategy and we allocate it
01:08 towards the medium whose death has been
01:10 greatly exaggerated and that is stores
01:12 the gangster move of the last 20 years
01:15 that has created more shareholder value
01:16 than any decision in the history of
01:18 business with Steve Jobs crazy
01:20 irrational decision to zag while everyone
01:23 was zigging and take money out of
01:24 advertising and allocate it into a
01:26 medium that was dying specifically store
01:28 this is our store and the first quarter
01:32 of the store has our home section and
01:35 our Pro section with all our great Pro
01:37 products and every product we make is in
01:40 this first 25 percent of the story and
01:42 see the whole product line stores are
01:44 the consummation of a relationship you
01:47 hear about somebody a good family nice
01:49 fun to be around and pre-purchase
01:51 through advertising but the physical
01:53 interaction the first kiss sex with the
01:57 product who we personify and have a
01:58 relationship with is at the store you
02:01 have sex with Tom Brady or Giselle you
02:03 go into an Apple store you go into a
02:05 Samsung store Samsung distribution which
02:07 is an AT&T; or Verizon store that's
02:09 having sex with a guy named Roy with a
02:11 nametag in bad lighting
02:13 you know what this is yes that is a ten
02:16 times larger than life replica of your
02:17 penis that's how the various point of
02:21 distribution stores are more and more
02:23 strategic and wealth
02:25 square footage and stores will decrease
02:27 the amount of money spent on each square
02:30 foot relatively will increase the other
02:32 gangster move post purchase warranties
02:35 some sort of guarantee some way of
02:37 getting data it's really post purchase
02:40 intelligence where we take data from the
02:42 purchase and use it as a means of
02:44 whipping the consumer back around to
02:46 that purchase funnel again think of the
02:48 clock as being an axis unfurled across X
02:53 Y or an x axis pre purchase purchase and
02:57 post purchase we want you to have a bias
02:59 we want to lean the axis this way
03:02 take money and allocation in your own
03:04 human capital out of pre purchase and
03:07 either put it in to purchase the stores
03:09 are under invested you can still make
03:10 money in retail in stores as long as
03:12 there's an omni-channel and we do click
03:14 and Collect but really try and get to
03:16 post purchase who are the best brand
03:18 builders in the world hands down Tobacco
03:20 take a product whose primary benefits
03:22 are death disease and disability and
03:25 turn them into the most aspirational
03:26 brands that make us bill tough and cool
03:29 and you have the best branders in the
03:30 world why are they the best brands in
03:32 the world because we turn them into the
03:34 best brand builders in the world when
03:35 they were advertising on television our
03:37 mothers our sisters and our daughters
03:38 kept dying and so we said that's it
03:41 we're pissed off you can no longer
03:43 advertise so what do they do they took
03:45 all of this capital and they allocated
03:47 it to purchase and they put cute
03:48 pictures of camels and bodegas at
03:50 distribution just about the time this
03:53 was losing its effectiveness good for
03:54 them but here's what happened our
03:56 sisters our daughters and our mothers
03:58 kept dying so we said that's it no more
04:00 cute camel Joey points of purchase just
04:03 as this was starting to lose some
04:04 momentum and they built the largest
04:06 databases in the world and when they
04:07 since you were stopping smoking they
04:09 started sending you Marlboro points or
04:10 coupons to get you back into the
04:12 franchise the original CRM database
04:15 marketers tobacco companies there are
04:17 exceptions to every rule pre purchase ad
04:20 supported media is not going away it's
04:22 just going to be a place to work or in
04:24 as a matter of fact I'll be watching at
04:26 supported media tonight I'll give you
04:29 one hint we'll see you next week
04:47 [Music]