What Does 'PIE' Have to do with Advertising?

What does PIE have to do with advertising you ask? Well, quite a bit according to a recently launched experiment by the well respected global advertising agency Wieden and Kennedy.

PIE (Portland Initiative Experiment) refers to a project which is just as much ambitious as it is innovative and aims to partner start-ups with big brands and Wieden clients to 'curate technology and innovation.' 

In essence, they are supplying a cauldron in which they can throw in and brew all sorts of good stuff such as start-up creativity, passion along with a healthy dose of real world needs of big brands. All of which they feel could lead to a very interesting concoction which capitalizes on the shared and mutual learning and experiences from brands and the start-ups themselves.

The initiative has already gathered formal support and backing from Coca Cola, Nike and Target.

It works by W & K supplying office space to promising start-ups, up to $18,000 USD and and access to key investors and developers. Brands are to supply mentors which will work with the start-ups as per supplying information and insight along with guidance relating to the exploration of potential brand-alignments and business opportunities.

All in all, as stated it is an ambitious project but one that certainly offers huge potential for all parties involved. In particular, the lessons it offers to advertising start-ups are invaluable and could certainly spell the difference from simply creating a mildly successful business to one that is able to really penetrate and build its models to truly suit what the big fish out there are all after.

Hats off to W & K and I would love to see this experiment catch on in other parts of the world.

The Ad Industry Pivots in Japan...

The devastating tragedy suffered in Northern Japan earlier this year has had a huge impact on Japan and it's people in so many ways. The continued suffering across a range of social and economical areas is still very much real and prevalent. The advertising industry in Japan of course has not been spared and has really shifted and changed its stance on a number of fronts out of necessity.


For those of you living outside Japan and unfamiliar with some of the challenges faced, Japan is dealing with potential shortfalls of energy this summer as a result of reduced energy output capability. In Japan, the buzz word at the moment is 'setsuden' which basically translates as conserving energy. This has certainly created a lot of doom and gloom within the industry for some.  


This setsuden minded shift has made its mark in a strong way within digital OOH. Basically, it has knocked digital signage off of its most recent rise and trajectory in Tokyo. Immediately after the disaster, all digital signage was shut down. Now, what we are seeing however is more of a limited run on it during certain times and places within Tokyo. 


However the lasting impact here is that in speaking with many agencies, the types of questions they ask now are always centered on energy output. Detailed break downs and technical knowledge of energy related issues is a must for any electrical based media supplier. On the client side, many brands are quite reluctant to touch anything with a DOOH push for fear of being insensitive. I expect such a feeling to remain throughout the summer and even deep into the third quarter. 


However, such news is an opportunity for advertising firms to really pivot. As this has disrupted a lot of the usual media buying patterns, the opportunity for agencies or media houses to present new and effective mixes is certainly there. Ideas which might have been straight to the scrap pile, suddenly take on new relevance and importance if they promise to skirt setsuden issues. 


In essence, what I am trying to say is that despite difficult operating environments such as this one. It is always worth remembering that for every challenge faced, an opportunity will present itself if you have the right mindset and outlook.     

Augmented Reality: The Future of Advertising?

What does a combination of computer interactivity, data, social media and the physical world add up to you ask? Well, for some it represents the entire future of advertising. These elements as noted above of course are the key ingredients to the various forms of Augmented Reality (AR) which are taking shape at a rapid pace these days. 


Just the notions of bringing something very static like a magazine, newspaper, poster, or even other physical world elements like buildings, consumer goods and outdoor structures to life has a very exciting appeal.


The biggest offering it allows I feel--and something I tend to harp about a lot within this blog--is the ability of connecting both offline and online media. This type of blending is key to establishing a highly effective connection point between the two realms we all seem to live within these days--namely the digital and physical worlds. Having this allows for the ever shifting and illusive 'top of mind' brand awareness to occur. That of course can then lead on to subtle yet extremely powerful media mixes in which buying decisions are being influenced, promotions realized and true ROI delivered. 


Our tools to 'try' and connect these worlds to date have been comprised of standard traditional media such as television, newspapers, billboards, posters etc. However, as you know these areas are waning in value and effect as they are built on 'push' models rather than the true gold of 'pull'.  As an OOH evangelist, I believe if outdoor is done right it can achieve 'pull' for an advertiser and ultimately make a strong creative connection point. If you throw in a successful AR campaign that pull factor could be massive! 


For perspective, just imagine, you are walking down the street and you have your smart phone out. As you survey the city scape you roll over a McDonalds building and up comes the latest promotions which magically appear in the air above and around the building. After finishing up lunch, you decide to take a stroll through a shopping district as a new pair of Nike's are needed. Once again, you bring up your handy dandy smart phone and enter your search criteria. You then do a 360 degree scan of the buildings nearby. Up pops the latest deals on Nike shoes. Great, you make a decision and enter one shop. Instead of trying on a number of shoes, you decide to grant that privilege to only a few styles. The weeding out process is all about projection mapping 10 or 20 different styles onto your foot. The top 3 are awarded the 'try on'. 


I am sure you get the point. These concepts while already available and possible in some respects are not far off in others. AR offers that unique blend of two distinct and separate universes. It is not hard to recognize the inherent value these technologies could offer with a little more streamlining and penetration. 


Lastly, if you are considering AR I have compiled some very basic tips that should be thought through before any project planning begins:


1. Make it easy to use
*There is no point making it overly complex and incomprehensible. Users will not go for it nor will others be able to endorse it if you need a manual to figure it out


2. Make sure it solves a problem
*Making an AR app for the sake of is not the way to move forward. Do some research and make sure there is a true need and problem 


3. Promote it with other innovative media
*Place the AR on platforms that unto themselves allow for specific targeting and buzz 
(see something like 'Parking Stripe Media' as an idea) 


4. Make it a utility
*Find a way to fit this into a persons life/routine and you have hit the AR jackpot! 


5. Support it
*Do not put this out for a 3 month run and judge. Build media mixes around it, nurture it and give the  investment of not only funds but time to see its worth develop


Have a look at some of these interesting AR campaigns already done for ideas. Or better yet, pick your favorite brand and do a Youtube search. Most big brands have started playing with the technology. 

Online x Offline ads = BIG POTENTIAL

Having reflected on the many pitches and meets I have had with numerous advertisers and agencies over the last year, it has been interesting to hear so many different ideas being floated around. In particular the cross media mix of online media content with offline OOH advertising. Digital agencies have started exploring OOH. Non digital agencies have started to explore collaboration and use of digital content. In both scenarios these firms are starting to understand that in order to stay on the edge, collaboration and new mixes are needed. 


Of course for what our company does this certainly helps. The logic behind it all makes complete sense. No doubt, there is power within online advertising whether it be Google Ads or social media.  As we all know, social media is everyone's darling and we all want to find a way to harness its power. Advertisers who ignore this, do so at their own peril as this trend is not going anywhere. 


Shifting gears into OOH, as noted in an article by the Economist, MagnaGlobal, a media researcher, predicts that worldwide spending on out-of-home advertising will expand by 8.3% in 2011 to about $26.4 billion, faster growth than that seen for other non-internet forms of advertising. Spending on digital billboards and posters is expected to double in the next five years, to $5.2 billion.


What this amounts to are very new and interesting cross media mixes being thrown about. What better way to direct target consumers to online campaigns than through engaging and fun media in the 'offline' physical world via things like AR or other innovative ideas like --shameless plug--'Parking Stripe Media'.  Recognizing the opportunity to really have fun and physically engage and 'pull' people towards your brand in noticeable and memorable ways is key. If that interest is fully captured we know what can happen--mobile pics, tweets, blog entries, sharing on social networking sites etc. 


Big advertisers are getting it too. Here in Japan, Toyota's very own agency  has summed up my feelings very well on this subject with their corporates-ese message on their website : 


"People’s life style and behavior are becoming increasingly diverse and personally distinct. Today, conventional means of mass communication are no longer able to reach consumers individually. Developing unique approaches suited to various diverse personal interests and activities is vital. In order to contact each customer (user) individually and establish “points” for a relationship, we devise, develop and conduct action plans in both the real and virtual worlds."


This trend should only accelerate. All in all, it is undoubtedly an exciting time to be part of these new mixes of Online x Offline media content. 

DOOH: Ads that can learn

While reading up on some DOOH industry news, I stumbled upon a really neat company called Immersive Labs which claims to offer digital signage software that allows ads to be altered and specifically targeted  based on specific consumers attributes. 

This of course is not entirely new. There is something called video analytics via small cameras installed on or near digital signs which allow DOOH marketers to analyze the people who pass by and then appropriately set the 'right' ads based on relative age and other factors. 

However, where things get interesting with this company is that it claims it's software can learn and get smarter by way of reading environmental factors in addition to video analytics on the fly.  Aside, Minority Report anyone? This technology incorporates social media tools such as Twitter and Foursquare.

Using a concrete example illustrates the potential power of this new tool.  Let's say that the video analytics are picking up on younger men passing by. At the same time, the system is also learning there is a sporting event happening in the area via Foursquare and Twitter. The end result? The system might show a Nike ad instead of a FedEx ad. 

Wow...

In short, this smart technology changes a billboard ad based on this video identification and other enviornmental information via social media. The software learns what works and improves over time. 

In a test at a Boulder Prana store, changing ads in this way resulted in a 60% improvement in engagement (as measured by time that people looked at the ads according to the video analytics system).

According to CEO Jason Sosa, he says he expects to have a product ready to sell on a larger scale in three to six months. Several pilot locations are already in the works including the St. Louis Rams stadium and JFK International Airport. 

If any of you have seen the film Minority Report, it would appear that fantasy is certainly catching up with reality. 

"Brands and Risk" Morgan Spurlock Style

This past week as I was wasting the time away during my daily train ride commute, I was directed via a tweet to a TED link entitled 'The Greatest Movie Ever Sold--a look into the World of Brand Marketing" by Morgan Spurlock. Aside from recognizing past projects--by title only--which he had put together, I have to admit prior to watching this video I had no idea who he was. After viewing it, I certainly came away with a much clearer vision, as well as an appreciation for what an interesting project he had put together recently.

Basically, for those who do not know 'The Greatest Movie Ever Sold' is a film all about marketing and advertising whereby the entire film is funded by product placement. So what happens in "The Greatest Movie Ever Sold," is that everything from top to bottom, from start to finish, is branded from beginning to end -- from the above-the-title sponsor that you'll see in the movie, which is brand X. The goal of this whole film is transparency. It's about seeing the whole thing take place in this movie from the concept being pitched to ad agencies right on through to production and finish. 

What makes it so engaging however--in at least from what I have gathered from the TED talk he gave--was that numerous big name agencies all turned it down and even recommended their clients not to partake. Spurlock even decided to by-pass the agencies and hit up the brands directly which included over 500 household names. The end result was that he got 17 brands to participate. That's right, only 17. Evidently and not surprisingly the agencies and brands were most afraid of giving up control on final product issues and not having enough say on particular production matters. 

His message which he makes clear here in verbatim is that, "If you take chances, if you take risks, that in those risks will come opportunity. I believe that when you push people away from that, you're pushing them more towards failure. I believe that, when you train your employees to be risk averse, then you're preparing your whole company to be reward challenged." 

The results of this movie so far since it premiered at the Sundance Film Festival you ask. How about 900 million media impressions so far? That's only online -- no print, no TV. The film hasn't even been distributed yet. It's not even online. It's not even streaming. It's not even been out into other foreign countries yet. So ultimately, this film has already started to gain a lot of momentum. And not bad for a project that, almost every ad agency he talked to advised their clients not to take part within.

So here we have it, a very clear example of just how risk averse we still are despite knowing the potential benefits and opportunities whether they are presented via social media, OOH, digital or other ways. This certainly speaks volumes as to how brands and agencies really need to re-think philosophies as per their activities. Let's face it, these chances to reach people in very unique and real ways are only going to exponentially multiply and for those who 'get it' the opportunities will abound. 

An Inside Look at the State of Advertising in Japan: Post disaster

Where is our ad industry in Japan right now? Are we within a state of solidarity and unity? Do we possess a state of common resolve with a plan as to how to maneuver this trying time? Sadly enough, it seems that such notions despite being inevitable are somewhat premature. I think the one common element most ad professionals could agree on at the moment is that we find ourselves in a complete state of uncertainty and confusion.

This tragedy which took place just under a month ago has certainly impacted many on both the personal and professional level. In so many ways, this disaster has been unprecedented in scale and reach. On a business front, we are alerted each day of new challenges that many industries—both domestic and international—face as disrupted manufacturing schedules wreak havoc.

To this point the ad industry has not had a lot of press coverage as to it's state. However, the effects are quite clear to anyone living within Japan at the moment. Television CM’s are just starting to make their way back aside the social messages brought to us by AC (Japan Advertising Council) http://www.ad-c.or.jp/eng/ .

Digital signage which had been one of the hottest media tools within Japan has been virtually wiped out for the time being due to power conservation issues.

OOH ads, posters and billboards as well have been affected too. For quite some time it has been common place on any major train or subway line to be presented with an array of ads within the stations or even in the train carriages themselves. However, this has been severely curtailed too. One reason for this lies with the over-reliance on key supplies in affected areas. Hydrogen peroxide is a key ingredient in paper bleaching amongst other things and two companies which supply this key substance were severely affected. This is in addition to six paper plants and a Maruzen Petrochemical factory—a major supplier of the nation's printing ink—which were rendered useless after the quake and tsunami. For a solid take on the over reliance of companies on limited suppliers see: http://www.terrie.com/

It is not hard to see how and why the advertising industry has been affected simply based on these cold and sobering facts. However, there is another reason which is just as pervasive and powerful at the moment. This one however, lies with a cultural explanation.

The Japanese people unfortunately have experienced devastatingly hard times before and one has to look no further than post WWII and the re-building efforts that took. The psyche of reserve, restraint and a pure willingness to dig in and re-build were qualities which certainly helped Japan to recover. Once again, these qualities will be put to the test.

How this affects advertising is that such unnecessary or outward displays of excess or distraction to tasks at hand are generally frowned upon. According to many, it is or should be a time of restraint and self control out of respect for those suffering and/or lost and also for the task at hand of re-building. This explanation explains why the few ads we are starting to see trickle out are based more around low key FMCG such as beverages and other everyday goods. It is safe to say that agencies are putting those luxury goods campaigns on hold for the moment.

Of course as we all know, time is a healer and things will come around again. The question for all of us in the ad industry right now is a matter of when? When will it be okay to return to normal advertising campaigns? When will it be safe to advertise without running the risk of offending target audiences? For many agencies, these questions move into things like, “How do we effectively target whilst also contributing to charitable efforts. How can an advertiser tie in its own altruistic efforts for the common good?” These are all questions which are being tossed about by many brands and agencies at the moment.

Make no mistake it is a time of confusion and uncertainty within advertising. The next few months will be a challenge for all of us. The one thing we must all tap will undoubtedly be our ‘creativity’ in balancing and navigating around these issues. Thankfully, that is an intrinsic quality all of us within this industry should have in abundance.