BRANDS, IT'S TIME TO GET MOVING: WHY ACTION-ORIENTED MARKETING IS THE WAY FORWARD

Via FastCompany

Despite our continued homage to the almighty 30-second spot and the much heralded promise of the virtual and digital realm, as Marvin Gaye sang in his 1968 hit “Ain’t nothing like the real thing.”

The greatest irony in advertising is that despite continued heavy media investments, branding doesn’t simply occur by staring at the TV or surfing the web. It happens best in the tangible interactions of authentic human experiences.

HUMAN DOINGS NOT HUMAN BEINGS

That’s because our brains exist for movement. As neuroscientist Daniel Wolpert states: “I would argue that we have a brain for one reason and one reason only. And that’s to produce adaptable and complex movement…Things like sensory, memory and cognitive processes are all important, but they are only important to drive movement.”

So it’s no surprise that as Hunter Gatherers for many millennia, we traveled nearly 12 miles a day in search of food. Our brains remain designed to do things not watch things.

“REMEMBERING SELF” DECIDES

When we engage people through physical action, we involve more of their neurology than just viewing something, impressing the brand more deeply into memory through our vast motor systems. We also vividly engage our multiple sensory systems with sight, sound, touch, smell, and taste, giving us more ways to firmly represent the memory in the part of the brain that drives response, the unconscious mind.

Brands are expectations of outcomes based on memories--heuristics or mental shortcuts to easier choices and better lives. Behavioral economistDaniel Kahneman indicates, when it comes to making decisions it is the “remembering self” that decides, not the “experiencing self.” How we feel largely depends upon our memory, not what actually happened.

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BEHAVIOR PRECEDES ATTITUDES

Marketing models hold that attitudes precede behavior, that we must first shift beliefs and imagery to get sales. But as psychologist Timothy Wilson explains, “One of the most enduring lessons of social psychology is that behavior change often precedes changes in attitudes and feelings.”

When we leap to a new behavior, we post-rationalize our actions through cognitive dissonance, seeking to reconcile the conflict and discomfort between our old ideas and our new actions. We assign causality to our novel responses, often falsely concluding that we made the conscious choice to act prompted by our established attitudes.

FLIPPING THE FUNNEL

Generating upper purchase funnel awareness of features, benefits and USPs is no longer enough or feasible. We need to focus on creating inspiring brand/usage interactions.

But budgets are primarily spent shouting not doing, in an effort to be heard amidst fragmenting media and a widening competitive fray. Studies in North America have shown that on average we see 3,000 ads per day, and the average drugstore sells 350 different kinds of toothpaste!

Disruptive tactics foisting messages upon “eyeballs” has become the norm. Trying to force compliance through unwelcome intrusions is a losing strategy. It makes life more difficult when brands are supposed to be shortcuts to make life easier. It makes us feel bad when brands are supposed to make us feel good.

I have created a 7-step process uncovering the real forces in play in effective branding. These are the seven steps:

1) Interrupt the Pattern 
2) Create Comfort 
3) Lead the Imagination 
4) Shift the Feeling
5) Satisfy the Critical Mind 
6) Change the Associations 
7) Take Action

Step 7 is: Take Action. If you don’t engage people physically, you are missing the most efficient way to sell your brand.

EXPERIENCE CHANGES EVERYTHING

The hottest brand to fly in the face of tradition is Red Bull, the company that first conceived and now owns the energy drink category. 
When company founder Dietrich Mateschitz hired a market research firm to test the concept, the survey yielded catastrophic results. Mateschitz recalls, “People didn’t believe the taste, the logo, the brand name. I’d never before experienced such a disaster.” He ignored the research introducing Red Bull in 1987.

The traditional test was missing the context of live events that would become the keys to building the Red Bull Castle. From the start, the brand ignored traditional media by leveraging one of the most celebrated human experiences: a good (but not necessarily old-fashioned) party. The foolproof plan was to give hip influential college students free cases of the energy drink and encourage them to throw their own event, a lucrative tactic that cost the marketer next to nothing.

As Mateschitz puts it, “We don’t bring the product to the consumer, we bring the consumer to the product.” The strategy was to create the best parties, not the best drink. As the brand grew so did the parties, with Red Bull becoming synonymous with high-octane fun that perfectly matched the attributes of the product and the sensibilities of their high-energy customers.

Red Bull would later expand these tactics to even greater experiential heights by sponsoring live events of the most intensely physical sort: extreme sports. Red Bull sponsored legions of affordable, death-defying athletes of less-than-mainstream but greatly exhilarating sports.

DESIGNING MOMENTS AND MEMORIES

In 2012 Red Bull pushed the limits sending Felix Baumgartner to the edge of space as the world watched live on the edge of their seats. He made the death-defying plunge and returned safely to earth.

This is a textbook case of what Kahneman calls the “peak end rule.” Brand impressions are not based on the reality of the experiences but almost entirely on the peak moments and the concluding impression—whether positive or negative. In other words, we need to create powerful, positive, peak physical and emotional experiences that leave the audience on a high note.

As Harvard business professor Nancy F. Koehn observes, “In terms of attracting new customers and enhancing consumer loyalty, Red Bull has a more effective branding campaign than Coke or Pepsi…Perhaps theindispensable tools of marketing aren’t so indispensable after all.”

We’re not architects of ads. We are architects of remembrance. The only thing better than reliving inspiring memories, is making and sharing them in the first place. Not on Facebook or by seeing a TV ad telling us how great your product is. But by providing real life flesh and blood moments that remind us of how great it is to be alive.

Sneak Peek: Check Out Pepsi's Drink-Customization Machine

Via AdAge

It doesn't look like much; it's an unmarked door among a small stretch of offices 30 miles north of Manhattan. But through that portal PepsiCo has ushered in consumers to test various iterations of its recently launched fountain machines.

Pepsi's Spire

Inside, each of the three versions of Pepsi Spire—the largest of which allows consumers to customize drinks in up to 1,000 ways—are displayed alongside prototypes for new vending machines and coolers. There is the social-vending machine that allows people to gift each other beverages. And next to that, a cooler with a translucent screen that lets the company display its beverages while running a loop of marketing messages.

"In this facility alone we've cycled through hundreds of consumers of different ages, who have interacted with the user experience and the [user interface] of the machines," said Brad Jakeman, PepsiCo's president-global beverages group. "We wanted to make it as intuitive as possible and find the perfect balance between consumer engagement and efficiency."
It's also about finding the right balance between marketing and sales, consumers and customers, choice and inundation.

PepsiCo Chief Design Officer Mauro Porcini said the Pepsi Spire portfolio is one of the best examples of the company's desire to make design a collaborative effort. A diverse cross-functional team, including designers, marketers, sales execs and flavor scientists, worked to generate ideas, prototype, test and tweak the machine.

To the extent it's possible, that team was charged with "future-proofing" the Spire, Mr. Jakeman said, explaining they talked to consumer-electronics manufacturers and trend forecasters. "There's engineering within the machine that may not be activated on day one. We didn't want to over-complicate it on day one," he said. "It was tempting."

Mauro Porcini

"Good design is when you're able to surprise people," added Mr. Porcini. "For some time they are disoriented. There's a learning curve. The trick is how long is the learning curve."

The company has been researching and refining Pepsi Spire for years—its chief rival, Coca-Cola, launched its own futuristic fountain machine in 2009. There are now 20,000 Coca-Cola Freestyle units around the country, and the company is in the midst of rolling out new formats. PepsiCo hopes to have 2,000 units in the market by the end of the year.

For Pepsi, this is an important play. The fountain channel accounts for nearly a quarter of total soft-drink volume, according to Beverage Digest. And Coke dominates with a share of about 70% compared with Pepsi's 19%.

"Obviously there's a competitive machine out there. As we were developing this, we were looking at what was working and what wasn't working," said Mr. Jakeman. "That led us to this notion of more choice to the consumer and more formats for the customer. … We also wanted to celebrate bigger screens, so it feels like an entertainment platform when you serve the beverage. We didn't want to create a machine that had a screen like an ATM."

Back lighting behind the Spire's screen synchronizes with the beverage selected—green for Mtn Dew, for example—and is designed to attract attention, Mr. Porcini said. Oversized screens allow the company's marketers to deliver brand messages both when the screen isn't in use but also throughout the process of selecting and pouring a beverage.

Mr. Jakeman used the example of a movie theater, where the machine's screens could easily be programmed to show trailers for new releases.

The oversized screens also allow anyone in line behind the person pouring a beverage to watch the transaction, which PepsiCo found helps consumers learn how the machine works and cuts down on long lines. The screens can also be set to refresh at set intervals to discourage dawdling.

Coke vs. Pepsi
From a business perspective, PepsiCo was intent on creating a portfolio of products that accounted for retail customers with different floor plans. There are three units available: a countertop unit with a 10-inch touchscreen; a countertop unit with a 15-inch touchscreen; and a model with a 32-inch touchscreen that can be configured either as a countertop or freestanding unit. Also important for customers, the units all run on existing plumbing systems and back-office infrastructure and were designed to be easily and quickly repaired.

"There's value in not reinventing the entire system from front to back; it strips down a great deal of complexity," Mr. Jakeman said. "One of the things we spent a lot of time designing is, how do we make sure that, in the event something needs to be repaired, it can be accessed? In some you can just take the screen off and put on a new screen."

Coke's Freestyle 

One of the most significant differences between PepsiCo's Spire and Coca-Cola's Freestyle is the way the beverages are customized. Newer Freestyle machines offer up to 140 beverages but consumers choose from pre-selected options. The largest Spire machine offers more than 1,000 combinations by allowing consumers to choose a base brand, Diet Pepsi, for example, and then add up to three flavor shots from a selection that includes cherry, vanilla, strawberry, raspberry, lemon and lime.

That's where PepsiCo's flavor scientists came in. "You can invent your own beverage and the machine won't allow you to create a terrible concoction," Mr. Jakeman said, citing Mtn Dew with vanilla as his personal favorite.

In short, Spire can save you from yourself: The machine doesn't offer the flavor shots that don't work well with a particular beverage. So, while there may be more than 1,000 beverages on tap, there's no lime Mug Root Beer allowed.

Virtual Reality: Advertising's Next Big Thing?

via AdAge

Oh baby! Virtual reality gets real Credit: Getty Images

 

You're on a wooden plank. Pivoting, you find yourself on the precipice of a deep pit. Taking unsteady steps, you cross with your arms outstretched for balance. You teeter to the end, exhaling in relief—and are told to about-face and plunge in.

None of this is real, a clearly evident fact. Motion sensors are strapped to your ankles and $39,000 black goggles, made by a company called NVIS, whose customers include the U.S. Army and Navy, cover most of your face and sit heavily on your head. But still, you're terrified.

So you cheat and close your eyes to jump.

It's a bit like the leap marketers such as Coca-Cola, HBO and Nissan are taking into the nascent world of virtual reality. Well aware of the hurdles agencies, brands and the media must overcome first—not the least of which are the current cost of the technology and the cumbersomeness of the equipment—these first-movers are wagering on a marketing future where goggles can be bought at Walmartfor $300 and brands can deliver visceral consumer experiences. Imagine Budweiser taking you behind the plate at the World Series or Pepsi giving you a virtual front-row seat at a Beyoncé concert.

But since marketers still need to provide the hardware, their efforts are currently confined to experiential marketing at large events, like the South by Southwest interactive festival and the Detroit Auto Show. However, the pace of innovation is likely to accelerate as new uses emerge—if, of course, more eyeballs migrate to VR technologies.

That may start to happen soon. Research firm MarketsandMarkets forecasts that manufacturers of VR and augmented-reality hardware—including smart glasses and head-mounted displays—will generate $1.06 billion in revenue globally by 2018.

"Everyone who does something [in VR] now, for the next five years, is going to be inventing something," said Aaron Clinger, technical director at Venables Bell & Partners. "That's really exciting for those of us who have seen the mobile and web revolution."

Thanks to Coke
Virtual reality could be transformative for the ad industry. Instead of interrupting people with ads, marketers could sponsor virtual experiences people actually seek out. But first, the ad industry has to understand this new playground.AD AGE LOOKBOOK

"The mistake every new medium makes is trying to take what the old medium was. They read books on the radio at the beginning of radio; in the beginning of cinema, they shot plays. There's a completely new form of storytelling that has to evolve for this new [VR] canvas," said Chris Milk, a filmmaker and music-video director. Last year he shot a short film of a Beck performance for automaker Lincoln's rebranding campaign. He also created a rendering of it in 360 degrees with six GoPro cameras.

Consider Coca-Cola's approach. Last month it staged a VR experience at the World Cup, where participants entered a replica of the locker room at Brazil's Maracana Stadium; then, after putting on VR Oculus Rift goggles, they moved from the locker room to the pitch and played on the field, all without getting up from their seat.

Matt Wolf, Coca-Cola's head of global gaming, said there's branding within the experience, but the more valuable aspect is that viewers are getting access to something that wouldn't otherwise be possible. "It's about the authenticity of being inside that stadium," he said. "Yes, thanks to Coke."

Coke put people on World Cup playing field.

Then there are business-to-business applications. Already one marketer, insurer Travelers, is using VR to train employees in worker safety by virtually showing the consequences of not following the rules. But on a broader scale, market forces are at work to bring VR to the masses. Oculus is probably the most recognizable brand name in VR, due to Facebook's deal in March to acquire the maker of the eponymous VR goggles for $2 billion.

The Oculus Equation
The details of Facebook's plans for an integration are still unknown, but CEO Mark Zuckerberg has conveyed in no uncertain terms that his vision is to use Oculus's tech for social networking—and that his company is making a bet on the next emergent computing platform after mobile. (Which would you prefer: hanging out with your faraway friend in a virtual environment or keeping tabs on her via her occasional status updates?)

"Oculus has the potential to be the most-social platform ever," Mr. Zuckerberg said when announcing the deal in March. "Today social networks are about sharing moments, but tomorrow it will be about sharing experiences."

Facebook isn't the only tech giant in the race. Sony is working toward a commercial release of its VR headset, "Project Morpheus," and Samsung is also reportedly developing VR goggles that connect to its phones and tablets.

Coca-Cola Maintains Marketing Spend Amid Sluggish Demand

Via AdAge

Coca-Cola's World Cup campaign launched in 170 markets.

Coca-Cola's plans to increase media investments in key markets are on track, despite weak second quarter earnings.

The beverage giant is contending with sluggish demand for drinks, such as juice and Diet Coke in North America, as well as an overall decrease in soda consumption. Earlier this year, Coca-Cola CEO Muhtar Kent pledged to increase media spending and brand-building initiatives by up to $1 billion by 2016.

Coca-Cola spends $565 million on advertising in the U.S., according to Ad Age Datacenter. The company reported spending $3.3 billion on advertising globally in 2013.

"Our productivity initiatives are on track as is our commitment to increase media investments in key markets," Mr. Kent told analysts. "We are delivering more and better quality marketing by focusing on increased efficiency and effectiveness."

Mr. Kent cited the company's FIFA World Cup campaign, which was rolled out in more than 170 markets, as an example of the company's commitment to marketing. He also highlighted the "Share A Coke" campaign, now in 80 markets, as an example of a marketing effort that's immediately having an impact on sales. Both campaigns, he said, will also translate to "better brand loyalty, better purchase intent" over time.

Revenue fell 1.4% to $12.6 billion for the period ended June 27, while net income fell 3% to $2.6 billion from $2.68 billion, a year earlier. Global sales volume rose 3% during the quarter, including a 1% volume increase for brand Coca-Cola.

The Curious Mechanics of EDM and How It Became Distinct From Electronic Dance Music

via HuffingtonPost

Over the next two weekends, the People of Tomorrow will witness floating stages, pyrotechnic phenomena, fountains, flamethrowers and flowers dropped by helicopters. They will camp in DreamVille, push buttons on their bracelets to keep in touch, and find the mythical key to happiness. They are 360,000 deep, they hail from 220 countries, and they are here for the largest electronic dance music (EDM) festival in Europe. Their stories will live on in the Book of Wisdom, and in the photos and videos they are statistically more likely to share before, during and after an event than their non-EDM peers.

The 10th anniversary of Tomorrowland will bring approximately 400 DJs to 20 stages. But according to many, the festival experience far eclipses the music: a phenomenon unique to EDM. The smoke and mirrors (often literally) of lasers, lightshows, projections; the neon aesthetic of rave culture; the associated drugs and alcohol, the tutting, twerking, and the PLUR handshaking kandi kids -- all these things constitute an attraction of their own. The music isn't always center stage. This year, Electric Daisy Carnival (the largest EDM festival in the world) sold out before the lineup was even released. According to a 2013 Eventbrite study, over a quarter (28 percent) of EDM fans don't listen to the music but still like going to the events. And a significant percentage of fans considered the event venue and promoter to be just as important as the artist performing when it comes to purchase decision (80 percent and 38 percent of fans, respectively).

These facts, along with dispensable income and social networking tendencies of EDM fans have bolstered the global EDM market to the tune of $6.2 billion dollars (with some valuations as high as $20 billion). As Diplo told SPIN, "A band plays, it's 45 minutes. DJs can play for 4 hours." In Vegas, that will turn a crowd over twice -- in the middle of the day. Nightclubs there are giving casinos a literal run for their money: XS, a club inside the Encore Resort brings in between several hundred thousand and a million dollars a night. And consequently, DJs, promoters and venues are making out with tens of millions annually for their efforts.

The commercialization of EDM has embittered fans and DJs alike, causing Deadmau5 to rename the genre "Event Driven Marketing" at the 2013 South by Southwest festival. Inevitably, things are sacrificed for the spectacle and there are many who believe music quality is one. "It's so big now it's just getting milked," Avicii told the Guardian. "Originality is definitely missing from EDM." "I feel like I've heard 10,000 DJs playing the exact same sets," DJ & producer Porter Robinson told Do Androids Dance last summer. And the ever inflammatory Deadmau5 chimed in this spring: "EDM all sounds the same to me."

However, the demand for the genre remains relentless. Tomorrowland is rumored to have sold out in seconds. As the International Federation of the Phonographic Industry (IFPI) 2014 Digital Music Report revealed, urban and dance music "consistently 'over index' on streaming services, which means that record companies are striving to sign more artists performing in these genres."

As musicians and fans alike begin to dissociate their electronic dance music from the mainstream commercial glow of the acronym EDM, and simultaneously more EDM is produced, the proliferation of the genre has been remarkable. Take, for example, the absurdity and multiplicity of the following tracts: brostep, techstep, drumstep, luvstep, thugstep, two step, darkstep, funkstep, hardstep, jazzstep, breakstep -- all are subgenres of either Dubstep, Garage, or Drum and Bass.

To be fair, genre lines are always amorphous at best, but within the realm of electronic dance music, the distinctions are especially weak. House, techno and trance all conform to a static 4/4 time signature, kick drum on every beat, high hat click to the off-beat (16th note), a repetitive structure and similar harmonic/melodic construction. We can talk semantics around trance's tendency to build up and break down its repetitions, or the tweaked instrumentation that seems to accompany techno -- but those slights of character would never make or break a category in classical, jazz, or rock.

In any case, as subgenres flood the scene, and commercial interests continue to inflate the EDM bubble, the People of Tomorrow will descend unperturbed. They're there for the experience. And in Tomorrowland, there's little a bubble wand can't solve.