Death of the Industrial Advertising Complex
ฝัง
- เผยแพร่เมื่อ 16 ก.ย. 2024
- In his talk at L2’s Digital Leadership Academy, Scott Galloway argues that advertising is becoming less essential to brand building as consumers are discovering products with tools like Google, Amazon, and TripAdvisor. The brand is no longer on the tip of the tongue, it’s what Google says it is.
Furthermore, wealthy shoppers are paying to avoid advertising altogether.
However, it is not all bad news for brands even though it might be for traditional ad men (appearing less and less often on the cover of BusinessWeek). Winners in this new age are not always the biggest spenders on ads, but innovators in product, supply chain, and influencers.
I wish I had a teacher as good as you during my studies. Thanks Scott
He went to Stanislaus?
Scott Galloway andnI
Thanks SO MUCH for making this available to nonmembers. I've been watching these for over a year and I'm still floored at how much you guys cram in & how helpful your vids are.
PROF SCOTT SPITTING THAT FIRE
Blazing hot fire.
I'm so glad I did not skip this ad.
The Day of Reckoning same
Right!! This guy is an information gold mine.
Maui Black do you know if/where i can find this ad?
That was by far, the most intuitive talk that I have listened to regarding this space. Great upload. Essential listening for all not just professionals and entrepreneurs.
Left the ad world 5 years ago and still have PTSD from that industry. Quite epic, loved the 'information wants to be free rant' at 21:00. Although I wouldn't put Google in the same boat at Facebook. Google gave the tools and what to do with their content but publishers didn't listen (admittedly Google still sucks at explaining how to use them). Instead they fell for Facebook who built a nice little box for them with one problem... you can never leave. Love the work L2 & Scott.
I have to say, your youtube ad is the first one I continued to watch without hitting the skip button in a long time. You my friend are very entertaining to watch and I learned from you as well!
like most industries advertising will reinvent itself to survive. so instead of the shotgun approach most of us grew up with watching TV, companies will go straight to content providers to to review their products. the "commercial" is longer, more in depth, more specialized, and better aimed at the consumer who would actually be interested. a great example of this is when dodge brought the hellcat challenger to Jay Leno so he could test drive it on his youtube channel. dodge let the man that most represents their target customer, baby boomer car people, test drive their new muscle car. and the dodge didn't just send any representative of the company they sent the CEO to ride along to address any gripes Jay may have had with the car. that's what I call direct feed advertising.
turshin
Am I the only one who thinks the term "Consumer" is kind of dehumanizing?
I learn more from L2 than I do from my marketing degree at University - thank you Scott for being a fantastic, relevant and interesting presenter
So what should you do if you're in advertising? Asking for a friend.
Great presentation. So many key points and takeaways that we can use to educate our current clients and prospects. Thanks Scott!
Absolutely LOVE this. Watched it 4 times already. One thing I did notice (although I totally support the point - it certainly isn't lost on me) is the slide about the decline in TV ratings (4:22). Scott mentioned after showing the slide that "revenues" had dropped by 28%, but I think the slide shows the percentage in ratings had declined by that number. There definitely is a correlation, but are the revenues dropping by the same number as the ratings? Again, not arguing the point, just trying to get clarity on the statistic. Thanks and keep them coming!!
I think ad revenue is declining. But not at 28% YOY (yet). (techcrunch.com/2015/01/20/2015-ad-spend-rises-to-187b-digital-inches-closer-to-one-third-of-it/)
The Advertising Industrial Complex is after a little post-coital cuddling with broadcasters and BDUs who collectively maintain that "TV is still the biggest bang for your buck". Until the Complex is dismantled and sold for parts, media agencies will continue to feed brand budgets to TV. I think media buying agencies are on their last leg as brands bring this function in-house and funnel ad dollars to FB and Google.
Scott Galloway I do feel that we are assaulted with more content than In the past , but the overall quality is lesser. of course, those networks/shows/providers that have good , we'll reviewed, quality content will retain "fans" , but average choice and loyalty to shows is, I feel, declining, hence ratings drop, and less ad revenue tied into lack of loyalty. That being said,up trends towards targeted advertising are right alongside this declining revenue/rating trend. makes sense on the surface to me
L2 has become the best learning platform I have after I sold my art-school soul and went into advertising. It's beyond the information presented, the format, rate of speech, art direction, animation-it's so infuriatingly good.
Thanks Scott, always on point. One question: what do you make of the increasing number of relationships between big marketing orgs and what were traditionally consultancy businesses, like Accenture, Deloitte, IBM, etc.?
The new digital wings of many of these companies seem to be based on offering marketing departments data-driven solutions and insight. It seems like that could lead to a few different things: wasted money on blue-chip consultants; more ad tech fragmentation, which is at best a preservation mechanism; or maybe even route to competition digitally.
Thanks again to you and your team for the perspective.
I planned on watching for about 5 minutes. I watched the whole thing. Very good, helpful information and well presented. I learned a lot that will help me. Thank you!
that was an amazing lecture, thank you!
This had inspired me to draw up my first marketing proposal at my job here. I had an idea on how to change how my customers engage in our website and make contact with us! I'm hoping it catches on!
I don't like the fact that TH-cam forces us to watch 30 seconds of ads without the ability to skip it, it adds up and I know I'm gonna ask for that time back in my deathbed
ads are for poor people, that is incredibly insightful to me...deep
You are amazing Scott. You are giving me a lot of inspiration and insights lately. Thank you from Italy ;)
would love some more longer videos.
Scott thanks a lot for another insightful presentation. Last year at DLD you presented "The Four Horsemen" and this looks like a continuation or a sequel. Interesting to note, that although you keep on saying "we don't always get it right", so far you got it right on this topic! I come from the "industrial advertising complex", had my stints on client side, and also started and exited several digital marketing agencies. So played on all sides of the "industrial advertising complex" at different points in my career. And I am a firm believer, that the industrial advertising complex is failing, it is trying to stay alive, while still trying its old tricks and not learning anything new. In a way it is like an old man, stuck in its old habits, sees the young around it doing things differently and don't get it and tries little to evolve. Question, what is your take on the growing appetite of business consultancies in digital marketing? And again, thanks for all the insights and point of views that you keep sharing.
No idea if he's right or not, but he sure is entertaining.
it depends if predictions are made based on market information
No one caught the "Valyrian steel" reference? 😅
But Valyrian steel is known for not getting duller and duller everyday, unlike the traditional media giants that professor Galloway is referring to, it retains its sharp edges long after its makers have died. Can we have a car analogy instead? ^^
th-cam.com/video/yOpSpQAxCHU/w-d-xo.htmlm30s
He pronounced it Valyrium.
You've done a really great job sorting through this big pile of disjointed facts (a pile of crap that we've been observing in the industry) and organized this information in a great logical way. Really awesome, and thanks for some of those factoids - I was actually looking for some of that data for one of my TAM projects. I'd love to hear your thoughts on where you go for your deep dive market analytics if you're not shelling out 25k for reheated terminal data... P.S. Does that mean you DONT facebook? ;-)
Im taking a marketing class for my masters right now. Love your videos!
"Don Draper has been killed, drawn, and quartered." 18:28
Tip of the hat to @ProfGalloway and @L2 . Always fresh, on point, humble and yet irreverent at the same time. #Death to #Traditional #Television.
I enjoyed your talk.
While the large and niche publishers are designing and monetizing ad-free, subscription products for their audience successfully, I'm curious how second- and third-tier publishers will respond and thrive. For example, they may lack the editorial quality and rigor required to distinguish itself from other publishers and justify 'gating.' Or, they may lack the resources required to create a superior subscription and referral experience, and the loyal audience to justify the investment.
Brave is one company that might be solving for this, though they will face the hurdle of enticing users to switch from their current browser of choice.
This is what i should be learning. These are fantastic!
Glad my ad blocker was off, excellent info.
I love how all of it works, your a very great speaker.
Predicted the current TH-cam ad crisis 100%
People got blind to the ads. They do not work well anymore, if the product is not good, or the price is too high, or if the customer can do a quick search on the product.
Direct ads are more or less irrelevant. Long term loyalty is much more important for brands, so they need good reputation.
This is amazing. I need :10 to process every one of Scott's :01. Great stuff.
Certainly there is a loss of big old fashion advertisers. Yet I think this is not the root of loss. The higher the superiority of your product and/or your product experience makes you to be less dependent on advertising. Companies you gave as low media high success have great innovation which those giants couldn't make in last decades. Thus they try to close the gap with heavy media investment to dominate mental availability.
What an awesome and insightful video, Mr. White! Could you please share your thoughts on AdTech companies and what the foreseeable future might hold in store for companies in this space? i.e. valuations, growth (if any), IPO activity etc Thanks!
24:50 - We should have known Trump would win, the writing was on the wall.
TH-cam is free, so some of us tolerate the ads, in order to fund our shows and because it's free.
Paying all that money for cable and still having to watch ads, that go to people you don't care about, is insane.
Scott, it worries me that understanding your lecture is so intellectually enjoyable. Does that mean i'm getting old or getting smart, or neither..
Scott Galloway you smell
Fantastic video; thanks for making it public.
Re the predictions, any further thoughts on the fifth horseman? Will Telsa scale before Uber provides health insurance?
TH-cam is now shooting itself in the foot by insetting .15 second commercials which cannot be gotten out of or shortened ! I watched a 10 minute Cat video and there were 5 of these microcommercials and 1 regular one ! Is this YT's way of bulling subscribes to sign up for their paid service ? I've watched TH-cam for many years and to my regret the quality of videos has declined sharply and this is just another thing to tick me off about the service ! TH-cam is making a mistake with this tactic. When I see one of these minihorrors, I pledge to NEVER buy that product that !
I all ready disagree with the statement that favourite brand is what ever people find on Google because they are touching on two different things. People use Google to find something they don't have AKA car repairs, News articles or karate lessons. Something they don't have all ready.
Where as accounts with the brand establishes with long term customer relationships and therefore allows people to establish a favourite brand. For example, A big reason why StarBucks competes with Tim Hortons for coffee is that StarBucks is a favourite brand to many North Americans.
16:33 skill trumps spend slide is amazing
A lot of Amazon reviews and on line reviews in general are paid reviewers, which causes skewed rating and covers up flaws of products and will loose consumer confidence in brands.
..
Majority of us ( independent thinkers )are moving away zero interaction media, TV ,printer newspapers and mags. Why because we are tired of boring one sided content .
Technology has changed the game. People think they want what they think is best. The Internet allows instant access to anything, clothes, groceries, cleaning services etc. It's a psychological game, or seems like it. I hate claiming I know anything , because I don't. I can't stand FB, I have my reasons, but I enjoyed your content.
My old classroom! I don't miss it 😕
You called it- TH-cam red
Well put
Scott is the shit. I'm wondering where his humor is though, that you usually find in his shorts.
So much interesting, but there is a point: we are all TV addicted.
Excellent!
Hey Scott! Wow! :) My pleasure. I've shared this over on Reddit too. Looking forward to your next talk.
re: advertising on produced entertainment (e.g. Movies), any time I hear your argument, I remind the speaker that cable didn't have advertising in the beginning. What's changed this time?
looking forward to L2inc IPO
Game of Thrones is not a subscription driven show, other than that this is great information!
Does anyone know what visualization tool he used for his presentation?
Damn it.. clicked on the video and couldn't stop watching until he finished speaking.
I really enjoyed this and agree with the majority of it. Anal observation (you know what I mean): No, the media did NOT "literally" take a gun and shoot it's own foot. (20:34)
So quality is everything now? As I predicted.
Scott's my hero, but as he said, they get it wrong all the time. I think he underestimated the digital users that are conservative or moderate/right. Trump effectively used cheap digital media and traditional media to advertise and it helped win his election. What Scott underestimated imo, liberal tech users rather play video games, or watch the Kardashians/Jenners than pay attention to the political news. Conservative voters root for and follow politicians like its their favorite football team. Just look at how many people follow Trump on Twitter vs. how many followed President Obama. To them, it is a sport.
"I believe essentially that ad blocking has become a tax that the poor and illiterate pay." 6:51
18:16 - Scott Galloway: "When's the last time you saw an ad agency exec on the cover of businessweek? No one cares what they think! These are no longer the thought leaders... these folks no longer have relevance!... The 'big idea' in advertising, is a small idea nobody cares about." #KABOOM
I know - that was a nice big shocker statement. My first thought - that it was SO sad that it's true, because all I wanted to be since I was old enough to watch re-runs of Bewitched with Darren Steven's big ad pitch campaigns was a big Advertising Executive. Alas, here I am in CE Marketing :)
Ad execs no longer have relevance? What about Gary Vee?
that was awesome
What is CPG though? I could google it, but he did not say what it was.
CPG = Consumer Packaged Goods (you probably already searched that, tho)
So what you are saying, is watching tv with commercials, is very similar to swimming in the rio olympics... hard to port, avoid the steaming coiler... and zika mosquito with the dirty syringe. Im only 5 minutes into the video, so i may have the wrong generalization?
Kinda mad he left house of cards out of his acknowledgements
"Sugar high of the Olympics."
@13:35 Ups!
"The most important artiber of success in humankind:: The Google algorithm." 16:33
White dwarf density, clarity, energy.
He's very good. And funny.
I can't stand my Dish basic service. More than 95% of the channels are junk / useless. I'm going to cut the "cable" as soon as I get free local digital broadcast combined with using my Roku for streaming what my family wants to watch.
Fragmentation is key to a market once efficiencies have crushed innovations in taste/style, convenience, performance. The product is stifled by efficiency.
However, most of what is happening today is utter BS. Maquillage is designed to cover the truth, and to cling to a falsehood only ensures as stronger eventual repudiation of that lie. If the repudiation occurs, the whole house of cards will collapse; so, bring on the Roman games to distract the populace and prop up the gossamer house.
The celebration of stupidity, in movies, TV, magazines, and the web, is the danger, and only apathy in reaction to the efficiently produced message may free us from our drowsy state. We are the problem that the danger acts upon.
I would love to see your opinion on how the media and advertising was utilized so effectively by the Trump campaign and what.. if anything... companies may be able to take from it.
so intelligent
This trend is why me and my son walk through a town and see few things of interest. The male stuff , apart from beer and food, is not there.
I can't wait for virtual potato chips, maybe the iPhone 9 will emit smells and have built in introvenous.
Jesus that was good
Great content, but the Scott Galloway name isn't fooling me, Bruce Dern. I've been listening. I know it's you.
Not under-appreciated in my house, "Scott". And tell Laura we said hi. ;)
More "technologically literate people" fall Democratic
Who has T.V.? What's that?
I agree with the assessment that Google and FB dominate the digital advertising. I work for an ad tech company that goes head to head against them in media plans. However (and we saw this with traditional broadcast media), new devices will spur new winners. Mobile and ultimately, mobility will spur new winners as it remains to be seen if FB/google will migrate fast enough to those new arenas. We're already seeing this with google and its moneymaker, Search, losing out on mobile.
I loathe advertising. It wastes my time. Let's recognize nothing is really free, and we pay for advertising supported content one way or the other, mostly with repetitious, bandwidth hogging, obnoxious advertising. There has to be a better way.
Scott, you know we love you, now please stop saying "literally" when you mean anything but. No ad exec "literally took a gun and shot their feet" (20:40).
meloapa
Well, there was that guy who supposedly ventilated a pillow in a hotel room to show off the suppressor for the MAC-10.
IMO the decline of the advertising industry is the first signs that we are experiencing the fall of capitalism
KungFuChess
Corporatism, you mean. Capitalism is actually coming back.
it's funny how i'm watching this on the day after election... maybe the republicans watched this one in July and started catching up on techs.
He may not be wrong but what a miserable subject to devote a life to. Advertising and business is cancer.
Pratfall effect within the first minute!
this guy really needs to stop saying gestalt. He says it in every presentation.
Enjoyed the talk... been in media 30 years in 2007 I predicted a lot of what has been delivered here..as i was in a digital startup 2005 building Spanish /English automotive search engine, could see what technologies were coming in vehicles the end of value to consumers traffic reports, time of day and weather information these anchors of revenues no-longer needed 5 years later when base vehicles come with a screen...
www.ProStreaming.net we plan on being a winner in Digital Streaming Audio/Radio and Podcasting... www.PSNnews.net and News
Ahhh, the pre-Trump days.