My parents are not the target demographic for most brands. Like me they don’t see themselves represented on screen. Even the old guy from the Werther’s Original advert doesn’t appear any more.
Spending some time with them recently allowed me to see what brands might be missing out on and how they related to brands.
Why are they not the target demographic?
Let’s do a thought experiment. If we asked marketers about why my parents aren’t the target demographic. There would likely be a range of answers and I am guessing that these would be prominent amongst them:
They aren’t aspirational
They aren’t culturally relevant
We’re after lifetime spend, that means below 35
We don’t understand them
We can’t reach them
They’ll have set behaviours
They aren’t aspirational
Neither are most brands, despite what marketers might want to think. Your supermarket is full of functional brands, as are utilities like electricity, gas suppliers, water board, broadband and mobile operators. You don’t virtue signal your status through being on Plusnet, but you might do through your iPhone. Funnily enough the accessibility features, simplicity of design and ease of my providing technical support means that they run an Apple household. They do want their house to look nice, be clean and are thinking about replacing their car. They’d like to go out and see things and maybe even do a bit of travel.
One fact from the Pew Research Centre surprised me, but spoke directly to aspiration. Retirement age people are twice as likely than the working population to be entrepreneurs working in self-employment. BBH interviewed 20 retirement age people in Britain and found that they strived for significance.
They aren’t culturally relevant
Neither is the advertising industry a lot of the time, despite attempts to diversify it is still overwhelmingly southern and middle class. If you go up north commercial dance music radio sounds very different from what you would hear in London.
Even clothing brands signalling are different. At the moment in Liverpool, locally designed apparel brand Montirex is more common than Gym Shark, Nike or Under Armour. Is this difference reflected in what we see from ad agencies? Often not.
The advertising industry isn’t culturally relevant for a lot of young people let alone older people who would be considered to be not the target demographic. Finally, ZAK pointed out in their work Learn to Time Travel that culture is cross-generational. And we can think of lots of tastemakers who are older: streetwear OGs like Alex Turnbull, Marc Fraser, Hiroshi Fujiwara, Nigo, John Landis or Michael Kopelman. Slightly younger designers like Yoon Ahn, who is in her late 40s, are barely hitting their stride.
We’re after lifetime spend, that means below 35
Most western countries are aging. In the UK’s case the average age of the population is 43. People are living longer, but also wealth / power to spend moving in favour of older people and has been for a good while.
We don’t understand them
As an industry we have little, if any understanding of older people. We don’t work with older people according to the IPA agency census. No one retired in advertising last year, only 7% of our industry are 50 or over. The average age of our industry is 34.6 years old, compared to the UK average of 43.
In the US, the Pew Research Centre, alongside the likes of Ofcom in the UK have published some basic research to get things started.
BBH London have tried to start learning more about older consumers with their Silver Culture Project.
And just like youth culture demanded attention 70 years ago, this too deserves to be seen, heard and celebrated.
One in five people in the UK is over 65. In less than 20 years that will be one in four.*
The over 65s hold over half of the UK’s wealth, with the average 65+ household having a net worth of £500k-£1 million.
We can’t reach them
I was reminded of a LinkedIn post by Steve Walls where he talked about how little of the adverts celebrated by the ad industry he actually saw when he wasn’t on LinkedIn. It’s a sentiment I could relate to. Stepping away from LinkedIn and watching evening television with my parents, I ended up watching more FMCG-related advertising than I had seen during my usual more online-based life.
I particularly liked the way Flash had doubled down and repeated the same creative for the past four years or so.
My Dad got a bit excited showing me the Twix bears. They were short listed for Cannes in 2022 and as an advert it just works regardless of age. My Dad beamed as he talked along with the bears word-for-word. Kit Kats have been displaced in his shopping trolley by Twix.
The Twix bears
My Dad also likes the Vitality dachshund and the Compare The Market meerkats. While its reassuring seeing that fluent objects, humour and creativity work for all generations, it also implies that despite him being not the target demographic media planners still seem to be doing a better job reaching my Dad compared to myself (or Steve Walls.)
There are some less memorable ads out there such Colgate Total’s dentist endorsement.
They’ll have set behaviours
This fails to recognise two things. Older people do change behaviour over time if it makes sense. You can see this is higher than expected level of technology adaptation by older generations. For instance, they are still using cashless payments, despite a lifetime of cash and cheque books.
They are technology users, including smartphones, but less of them are using social media (and that might not be a bad thing). More retirement age people are working than ever before, the number in the US has doubled in a decade.
In my parents case, behavioural change came partly due to COVID, they embraced Amazon to buy cleaning products, supplements, motor oil and vacuum cleaner spare parts.
Secondly, behaviour change is often forced upon them from medically induced changes such as giving up smoking. Then you have physical changes from less range of movement, hearing or vision to incontinence.
Some brands have tapped into this market.
Always Discreet
Procter & Gamble have extended their Always menstrual pad brand to cover incontinence due to aging. Discreet are underpants with a built in pad allowing users to continue having a normal life. Procter & Gamble has managed to move from ‘not the target demographic’ to new product innovation and brand extensions.
Welcome to my May 2024 newsletter, I hope that you’re looking forward to the spring bank holiday, unfortunately if like me you’re in the UK – then that was the last public holiday before the end of August. This newsletter which marks my 10th issue. I wasn’t certain that I would get to a tenth edition of this newsletter.
The number ten has a high amount of cultural symbolism from the biblical ten commandments to the ten celestial (or heavenly) stems during the Shang dynasty that marked the days of their week. There were corresponding earthy branches based on 12 day groupings. While the stems are no longer used in calendars they still appear in feng shui, Chinese astrology, mathematical proofs instead of the roman alphabet, student grading systems and multiple choice questionnaires.
New reader?
If this is the first newsletter, welcome! You can find my regular writings here and more about me here.
Things I’ve written.
I wrote a comment that struck a bit of a nerve about being asked to do a project ‘for my portfolio’.
Omakase and luxury futures. In the face of all the changes facing the luxury sector, is the answer learning from the Japanese tradition of omakase?
April marked the 20th anniversary of Dove’s campaign for real beauty. I took a slower approach than the LinkedIn hot takes to reflect on its legacy.
How behavioural science can help optimise the response to a coffee shop problem.
I saw clear parallels between car touchscreens and the changes that digital music instruments went through in terms of design and adoption.
I have had Alex Kassian’s cover version of the Manuel Göttsching classic E2 – E4 on heavy rotation. It was released just in time for the Ibiza season and has Mad Professor remixes dubbing out the balearic vibes for all the deep house shamans.
Books that I have read.
After Watches and Wonders 2024, I finally managed to get the time toreadRolex Wristwatches: An Unauthorized History by James M Dowling. Dowling is the person that the pre-owned watch market goes to for authentication of really old or unusual Rolex models. His history of the company, while unauthorised, had the collaboration of early Rolex staffers. What comes out is an interesting tale of adaption. Rolex started off as a UK reseller. The company innovated due to client needs and somewhere along the way because the luxury watch manufacturing giant we know today. What becomes apparent that their success was partly down to timing, circumstance and a belief that you change nothing, unless you’re making it better. The last point is something that product managers the world over could learn from.
David McCloskey’s Damascus Station came highly recommended as leisure reading. My taste in espionage fiction is more towards Mick Herron and John Le Carre rather than the more action orientated. This book had enough intellect and imperfection to make me put up with the James Bond factor.
I am at the time of writing working my way through Nixonland by Rick Perlstein – which I started before the student sit-ins against the conflict in the Gaza strip happened. More on this book once I have finished it.
I like watches, the design and quality of engineering that they represent and even the sound of them ticking away, but I generally don’t enjoy Hodinkee interviews. However, when they interviewed sneaker legend Ronnie Fieg I watched it. Fieg’s story around his watches is amazing, with each watch marking a milestone.
TML Partners and Accenture Song have done an interesting report on ‘the future of intelligent marketing performance‘ – basically CRM and e-commerce based on a impressive roundtable of marketers. What immediately struck me was how many of the problems would haven written about in a similar way a decade ago. We are constantly in a state of digital transformation, that is starting to feel more like ‘digital treading water’ now. It is due to relatively short organisation memory and lack of a ‘learning element’ in organisations.
Back when I worked in Hong Kong, I got to work on Colgate alongside other agencies. The work that I was doing was in association with the dedicated agency Red Fuse which was the umbrella for all WPP work. I was eventually shut down from working on it by APACseniormanagement from my own agency at the time; due to internal agency politics that I long gave up trying to understand.
While I was working on the project, I got to meet Jason Oke who is now in charge of global client relationships at Dentsu in New York. Jason appears on the Google Firestarters podcast discussing how to get great advertising ideas made. Some of the thoughts are timeless and echo the advice of Ogilvy on Advertising. It’s well worth listening to.
BBH Singapore Cultural Bleats newsletter
Every agency has some sort of email newsletter, but one that stands head-and-shoulders above other agencies is BBH Singapore’s Cultural Bleats. I promise you once you get past the name, it’s brilliant. The premise of the newsletter is that they put together interesting cultural things to act as useful provocations. This is exactly the kind of thinking, curation and sharing that planning and strategy teams should be doing if they aren’t over-committed on Workfront. A prime example of the kind of thing that Culture Bleats might pick up on is how rich people no longer appear to eat due to Ozempic and meal replacements like Huel.
Dow and Procter & Gamble announced an agreement to make a proprietary way to recycle mixed plastics. I am all for improving recycling of plastics, but having a proprietary method adds complexity into a recycling system that’s already unfit for purpose. I hope that once commercialisation happens P&G will follow the example of Unilever who freely licensed its more efficient aerosol cans to other manufacturers who were interested in the technology.
The Norwegian government published the results of its Mannsutvalgets or Men’s Equality Commission. The report goes into policies across several areas here (in Norwegian). It has some interesting findings that echo think tank thinking about the intersection of social class and opportunity outcomes.
Some of the content around health is particularly interesting Dagens Medisin covered some of these findings, you can see a translation of their article here. However some of the findings in health did make me wonder. It notes that men in Norway live shorter lives than women and considers this to be an equality challenge. Most writing I have seen around the gender mortality gap see it as a biological given rather than a ‘gap’. It felt like greater research was needed to support this reframe in science rather than a well-meaning aspiration.
The report calls on the Research Council in Norway to take up the challenge of improving the knowledge base on many of the issues tackled in the report. The commission acknowledged data-related challenges and wanted revised statistics / indicators for gender equality so that they reflect the equality challenges of boys and men than are currently available.
If you have semiconductor clients and haven’t been on Malcolm Penn’s Future Horizons semiconductor industry awareness workshop, you’re in look he’s running it again on June 18th. I started my agency career working on technology hardware, gadgets and semiconductors – the Future Horizons course helped no end. I went on to work for numerous technology clients including AMD, ARM and Qualcomm.
Finally this essay on human creativity provided a lot of fuel for thought. It pulls together a multi-variant model for why human creativity is on the wane.
Factors included:
A childhood lack of free time for play and imagination. Instead children have much more regimented structural lifestyles today.
Massive access to more cultural artefacts than we could possibly consume from around the world at the touch of our fingers. The unknown space is now limited and so there is less opportunity to be creative within it.
Science and technology innovation is connecting less disparate areas of knowledge in order to make a ‘thing’.
Stimulation is focused rather than a wide range of stuff, rather than washing over us.
Things I have watched.
I have found myself watching less Netflix over time. Then Netflix moved from getting paid through the Apple app store to wanting a direct payment and bumped the price up. So a mix of inertia and not wanting to watch a compelling show or two has meant that I have consciously uncoupled from Netflix for the time being. I will probably go back when I have a good enough reason. In the meantime, I am buying the odd Blu-Ray or DVD here and there instead. It seems that I am not the only one who has taken this approach.
Amazon Prime Video seems to have a bipolar personality between Apple TV+ level tentpole content and a wide range of trashy films, some of which deserve the moniker ‘cult cinema’. Red Queenfits into the former category rather than the latter. It is based a series of books by Juan Gómez-Jurado. I have just started reading the book Red Queen, but the TV series is compelling. I didn’t realise that I had managed to watch four episodes in one sitting.
I went back to watch the Alain Delon Traitement de choc aka Shock Treatment. Delon plays Dr Devilers, the proprietor of a clinic on the Brittany coast. The clinic focuses on rejuvenating tired wealthy clients with spa treatments, special diets and infusions. The middle-aged patients at the clinic are true believers and as their treatment happens they become more child-like as the rejuvenation happens. The dark side of the clinic is that the serum comes at a price. A new patient finds out what actually happens and what plays out is a French New Wave allegory that touches on similar ethical health concerns, rather like the film adaptation of John Le Carré’s The Constant Gardener.
My internet went down and I managed to work my way through The Street Fighter Trilogy starring Sonny Chiba and made famous by the Tony Scott-directed True Romance. The Street Fighter series was a key influence with Quentin Tarantino, who wrote in their role as a plot device in True Romance and had Sonny Chiba appear in his Kill Bill series. All of the films feel a bit hackneyed in a post-John Wick world, but the first instalment is hard-bitten. Given the torrent of films coming out of Hong Kong at the time, The Street Fighter films stood apart with their unflinching violence displayed on screen. They became the first film in the US to receive an X certificate for violence alone.
Along with the Shaw Brothers boxsets and Bruce Lee’s filmography, the Street Fighter trilogy, is essential viewing for both Asian cinema buffs and martial artist movie fanatics.
How do the sequel films stack up? The second and third film in the series have a bit more playfulness and off-kilter aspects to them similar to films of a similar age made as spaghetti westerns. Sonny Chiba’s 1974 trilogy typify the martial arts craze that swept western cinema in the early 1970s onwards. In the UK, The Street Fighter was called Kung Fu Street Fighter. The likely reasons were two-fold, a similarly named Charles Bronson film and the glut of Hong Kong martial arts films being shown.
The Source is a French police procedural series that shows the cat and mouse game between a French Moroccan crime family and the police tasked to catch them. I am in a few episodes and really enjoying the show so far.
Useful tools.
Email charter
My friend Marshall mentioned this email charter on LinkedIn. Share it with anyone you work with to improve the quality and volume of team communications. Much of it is about level setting expectations. More about the email charter here.
Martin
Martin is an app that integrates Claude-3, Deepgram’s Novo speech to text service and GPT-4 Turbo to interact with Google personal productivity software including Google Calendar and Gmail. Conceptually it’s a better Siri-type digital assistant. I have heard good things about it, but don’t rely heavily on Google services myself, so your mileage may vary. More details here.
Magnet
Magnet is a handy piece of software that keeps your desktop organised. It was recommended to me by a friend who codes software for a living. It is particularly handy for keeping ‘presence’ based channels (like Slack, Teams, Mail.app together on one screen as a ‘war room” type view and having creation on another screen. It even works if you use your screen in a vertical orientation.
PamPam
A service that allows you to create and share maps. You can import maps in various formats or describe it in text for PamPam to render it. Strangely useful.
Scribd downloader
I am not sure how Scribd managed to digest so many resources and hide them behind a paywall. But this might be the antedote if you have something specific that you need.
The sales pitch.
I have had a great time working on a project with GREY & Tank Worldwide. I am now taking bookings for strategic engagements for a bit of time that I have in early to mid-June; or discussions on permanent roles. Contact me here.
I was privileged to freelance at Ogilvy on Dove a number of years ago and got to understand the brand a little better during that time. My work on Dove was focused on product advertising for Dove soap in Brazil, the US, Vietnam and the Philippines rather than adding to the master brand canon around beauty standards.
When the 20th anniversary of the master brand campaign rolled around my LinkedIn was filled with posts about 20 years of the Real Beauty (or changing beauty as its currently articulated) positioning for the Dove brand. I took more of a slow read/write approach to my take on Dove.
Dove origin.
The origins of Dove lie in the injuries experienced by American servicemen during world war two. There was a need for a milder soap to address the needs of burn victims, and the concept of having moisturising cream (or cleansing cream as it was called in the earlier ads) was included in the soap to rehydrate skin rather than leaving it excessively dry after stripping off the skins natural oils.
Dove was introduced as a consumer product in 1957. The original advertising focused on the functional benefits of the product.
Decades later and the Dove advertising continued to focus on the products functional benefits.
For instance this 1990s advert positions Dove against everyday beauty brands and premium brand Neutrogena.
Dove still does functional benefit advertising, but it’s the master brand level advertisements that tend to get the most attention.
2004.
It is worthwhile considering the context that Dove was entering into with its reinvention. While we were post-9/11 the culture still has the optimism of the early 2000s. Celebrity gossip and paparazzi photos and videos were still a thing. Facebook had been launched for Harvard University students. Myspace had launched a year earlier with a focus on music and blogging was gaining a head of steam as a social channel. Real Media had launched a streaming music service but Spotify was a couple of years away from launch.
iTunes music downloads, CD ripping and iPods were reinventing music. Television shows were used to find the next popstars, while Dido and Eminem were dominating radio play.
DVD series box sets were a thing. Season three of TV show 24 was the must see TV with Jack Bauer trying to stop a biological terrorist attack and deal with his own heroin addiction.
I was using a Nokia smartphone and a Palm Tungsten T personal digital assistant at the time.
Beauty soap category at the time.
Beauty soap was not a new category. Unilever had arguably marketed the first beauty soap called Pears. By the time real beauty happened Pears was no longer distributed or marketed by Unilever in the UK. As well as Dove, Unilever owned Lux which was seen to be a ‘milder for your skin’ soap. By this time, Lux was a heritage brand that my Grandmother had liked and its main market focus was Latin America, Africa and South / South East Asia. Lux has pivoted to a girl power like position against societal sexism in its brand purpose led advertising.
Procter and Gamble had their own Lux analogue called Camay that traded on the glamour of famous actresses and socialites. At this time Camay was not seen as contemporary in the UK, but was selling well in Eastern Europe. By a strange twist of fate P&G sold Camay to Unilever in 2015, it was available in Latin America.
Simple soap was a British market competitor that had been part of Smith and Nephew’s spin-off of their consumer products division to focus on their medical businesses including advanced wound management. Simple’s positioning was that it contained no unnecessary ingredients and that it was ideal for sensitive skin.
Nivea had cleaning products like shower gels rather than soap per se but was in the personal care space.
At the time, Dove like Palmolive and Simple might be bought by a housewife and used by all the family. My Mum and Dad still use Dove or Simple soap bars, based on which they find first on their supermarket run.
Real beauty.
Dove’s global brand team wanted to reposition Dove more firmly in the beauty category. The story that is promoted revolves around how the brand team presented the Unilever board at the time with interview footage from their wives and daughters about their opinions on beauty.
There were a few iconic images that came out of the campaign.
The tickbox images that appeared in a lot of out of home executions at the time.
The Dove evolution video which captured what lots of people knew in the media industry, but tapped into wider public discussions about the use of photo manipulation that were appearing around that time.
How real beauty memed.
Dove’s outdoor execution in the London Underground had wags using pens and markers to suggest the negative answers. I remember on the escalator in Holborn station seeing every advert with the box ticked. It even memed with online celebrity news site Holymoly launching the campaign for real gossip.
Dove Men+Care range.
Dove brand extension Dove Men+Care was launched in 2010 and now has a comprehensive range of everyday products. Unilever described this as a ‘white space’. But Nivea for Men had been in this space since 1986 and Nivea had sold shaving products to men as far back as the 1920s.
Dove Men+Care’s purpose wasn’t that clear when I worked on Dove as the master brand is so focused on empowering women and girls.
We believe that care makes a man stronger, and in order to best care for those that matter to you most, you need to start with care for yourself first.
This take from the Unilever website about what the Dove Man+Care brand stands for is still very generic and it could cover anything from Gillette or a Jordan Peterson sound bite to Andrew Tate’s various manosphere-oriented, fitness-focused enterprises.
The risk of a male counterpart.
It would be a major undertaking to build this into something a bit more pointed, yet fit for purpose. I could understand why it would be low on the priority list, particularly when Gillette’s effort was received so badly at the time.
We know from behavioural science that positive reinforcement works better than taking a negative stance. I have heard a couple of hypotheses put around at the time that:
Men may use Gillette razors; but women in households buy them.
Women represent the largest growth market for disposable razor systems due Gillette’s male market dominance, male consumers inertia to change brand once chosen and facial hair growth – meant that the Gillette brand team didn’t feel that they were taking a risk.
In both cases, men feature in the advert, but may not have been the ads target audience.
However I think that the media buying suggests these hypotheses were wrong. The ad was run during a prime TV spot on the Super Bowl. Critics point to Procter & Gamble taking a $8 billion non-cash writedown for the shaving giant.
P&G reported a net loss of about $5.24 billion, or $2.12 per share, for the quarter ended June 30, due to an $8 billion non-cash writedown of Gillette. For the same period last year, P&G’s net income was $1.89 billion, or 72 cents per share.
…The charge was also driven by more competition over the past three years and a shrinking market for blades and razors as consumers in developed markets shave less frequently. Net sales in the grooming business, which includes Gillette, have declined in 11 out of the last 12 quarters.
From a societal perspective in general masculinity related topics is a cultural land mine; particularly when #allmenaretrash and similarhashtags are now commonplace, so it is harder to use in an effective manner the kind of nuance Gillette attempted.
Egard – a watch brand made this response video to Gillette.
Impact
Dove grew as a brand and became a form of social currency. It made the agencies involved (Ogilvy and Edelman) famous for years to come. What Edelman actually contributed to the creative concept is open for debate.
In terms of the Dove real beauty brand purpose, the results seem to be more mixed.
The current Dove master brand ad ‘The Code’ seems to be very similar to the original ‘Evolution’ ad, the only changes have been that Photoshop was being used by an expert and AI has now put it in the hand of teenage girls.
While the public discourse has changed behaviours haven’t and the wellbeing of girls and women seems to be in a similar or worse position today than it was 20 years ago.
Part of this is likely to be societal, we live in more anxious times and the status quo may have been even worse, had Dove not sparked the kind of public discourse it had.
Brand purpose?
At the time when Dove’s campaign came out, I can’t remember purpose really being a ‘thing’. The closest thing I could remember in the marketing zeitgeist is that people would occasionally talk about technology in terms of the pitch a young Steve Jobs made to PepsiCo executive John Sculley: do you want to sell sugared water all your life, or do you want to change the world?
There was talk about changing attitudes and creating a movement – but it was seen in terms of creativity, rather than a higher purpose.
At the time Unilever’s fragrance brand Lynx / AXE were running creative like this.
AXE / Lynx is still the world’s number one men’s fragrance brand, but its positioning has changed a bit.
When you smell good, good things happen. You’re a little more confident and life opens up a world of possibilities. We believe that attraction is for everyone and between anyone. It doesn’t matter your race, your sexuality, or your pronouns. If you’re into it and they’re into it, we’re into it. That’s The New AXE Effect.
Lynx and AXE content wasn’t that far out. Advertising in the late 1990s and early 2000s wasn’t so serene. You has several ad campaigns that were subversive or transgressive in nature.
A good deal of this was cultural zeitgeist. If you were a creative director in your mid-30s at the time, your terms of reference were very different. You would have likely enjoyed sub-cultures like the rave scene and independent music that drew from 1960s psychedelia and counterculture icons. You probably watched the Jim Rose Circus Sideshow film, one of their TV appearances or attended one of their live shows. Russell Brand was considered funny.
Brands getting attention and critical acclaim like Sony’s Playstation gaming console, Levi’s and Skittles were taking brand risks with campaigns that were far edgier than we’d be likely to see now. One direct mail shot from Sony Playstation designed to promote the Tekken 3 fighting game was sent out in a plain manilla envelope stamped ‘private and confidential’. Inside was a convincing medical card advising that the recipient receive immediate medical treatment for a potentially serious condition. Some of those mailed were waiting for hospital test results and complained to the authorities.
Meanwhile in the US, Mountain Dew was promoting pager plans as part of a co-marketing deal. But this was happening in the middle of a moral panic on pagers being a portal to drug dealer hook-ups and teen prostitutes receiving bookings from johns. Kids were being arrested and charged for possessing pagers in schools and colleges.
Failed online business Pets.com had a distinctive shouty voice that we probably hadn’t seen since Poundland’s ‘teabagged’ social posts.
Two examples give a good temperature check of what was happening in agency teams at this time up to just before 2010.
The Volkswagen ‘terrorist’ film that was used as a door opener by creative team Lee Ford and Dan Brooks. It leaked online, much to the bemusement of Volkswagen. Creatives thought it would be well received by a brand marketing team with a sense of humour. While VW didn’t like it, it did get them work with a large production house in the US and London agency Quiet Storm.
The second one was Lean Green Fighting Machine’s Facebook campaign for Dr Pepper in 2010, that referenced an online Brazilian porn clip known as ‘2 girls, one cup’. The client had signed it off, without knowing the context. Controversy ensued on Mumsnet and the agency was fired from the account.
Amidst all this cynicism, boundary pushing and counterculture; Dove’s real beauty would have been distinctive and differentiated. Even if it did run a risk of being perceived as cynical self-serving corporate schmaltz.
Brand purpose as an idea seems to have gained popular currency after Dove’s campaign for real beauty.
You can see in this chart based on Google Books data how the English language mentions of ‘brand purpose’ took off.
Data from Google Books Ngram viewer
Brand purpose critic Nick Asbury places the rise of brand purpose to the 2008 financial crisis and related events such as the Occupy movement, which supports the post-2014 surge in interest. 20 years later, Dove is now seen as being emblematic of brand purpose. Dove took on brand purpose as a concept over time, with the increasing prominence of the Dove Self-Esteem Project being a case in point.
What prompted me to write about Geico advertising was a stream of news from marketing services companies about the state of technology company advertising. At the time of writing Stagwell are just the latest marketing services firm after S4, IPG, Omnicom and WPP have pinned declining profits on a reduction in technology company advertising spend. Then this story broke about Geico advertising: Insurer Geico made more money after benching its famous gecko | Quartz – and my first reaction was that the wrong lessons might be taken away from this.
Geico advertising – a primer
Geico îs an unfamiliar name to most people outside of the US. If you’ve read American magazines chances are there was a print ad or two in there with their iconic Gecko spokesperson. It’s a similar case on American television.
Geico advertising and their Gecko are as familiar to Americans as the meerkats of Comparethemarket.com are to your average Brits.
The truth about technology marketers vs. Geico advertising
Having worked with technology brands on and off for the past three decades, I have enough experience to know that generally, they aren’t great marketing organisations.
Coinbase’s Super Bowl ad drove traffic to a site that fell over.
Geico reinforced brand equity in the insurance space and pointed out their 24-hour claims hotline (I imagine that this isn’t an exclusive feature, but you wouldn’t know it from the advert).
Growth mindset ≠ marketing mindset
As organisations, they have a growth mindset, but not a marketing mindset. Before the internet, this meant a powerful field sales force organisation and marketing meant a bit of branding / design work coupled with case studies for the sales people. With the internet came constant iterative ‘growth hacking’ on digital channels, that mirrors agile software development rather than the best practices of marketing science.
There is a good reason why organisations like the Ehrenberg-Bass Institute for Marketing Science are supported by FMCG manufacturers, luxury goods makers, media companies, marketing services firms and pharmaceutical companies, BUT has no technology company sponsors.
The reasons are cultural in nature:
Engineering – if I haven’t heard of it or invented it then it’s not valid and you’re just a suit. At best great product is the marketing – and that’s great if you have a clearly differentiated great product which is self evident. The engineering mindset is also why they trust adtech and marketing automation services which outsource your marketing communications approach to a black box
Sales – marketing is just support. Which is the reason why my early clients (like old school Silicon Valley royalty LSI Logic) promoted long serving secretaries and administration staff into marketing roles
Even if they had a marketer who knew about Ehrenberg-Bass they wouldn’t be able to get in buy-in from the wider organisation to participate and they’d likely be fighting other dumpster fires elsewhere
Secondly, their laser focus on data affects their outlook. To paraphrase the comedian Bill Hicks: they know the price of everything, but the value of nothing. Because they are only looking at short term data. Great marketing and advertising also has long term effects that both screws with the short term marketing data focus.
Marketing and growth hacking are considered synonymous. It would seem ridiculous for me to to claim in any large marketing orientated organisation that sales and marketing are synonymous. The differences and complementary aspects of both would be well known. Yet in technology companies, this isn’t the case.
By contrast Geico as a brand is an organisation who understood marketing. You make your car or house insurance decision at best once a year (though there is friction in making a change).
The technology sector approach would be for Geico to bid on search ads and aggregators to acquire customers and then do direct mail or email when it comes to renewal times. But Geico advertising does something different. Geico advertising builds mental framework, so that Geico means car insurance and will be one of the brands that you consider.
This achieves a few things:
You are less likely to move away from Geico, you may not love them, but searching for an alternative might be too much of a hassle.
You may be reassured that you have chosen ‘the’ car insurance
It helps new customers get over the ‘which car insurance company to choose’ decision
It helps with upsell on the products due to the reassurance of the brand
Technology companies deal with these problems in a slightly different way:
Certification of engineering staff. If you are Microsoft certified or Cisco certified, you are less likely to use open source software or Juniper Networks products respectively. It would be against your self interest and the investment in terms of time and money that you have made in your self development
Contractual lock-in – self explanatory
Technology lock-in. You can put your data or programming code into a particular system, but its much harder and more expensive to move on to another system
Owning the entire technology stack. This is the approach that Adobe Systems have taken, gradually acquiring over the years the entire marketing, workflow and creative systems used by ad agencies, media agencies and their clients
So why was Geico advertising spend cut?
This is the crux of my point about how the wrong lessons might be taken away from the Geico advertising spend cut, with no ‘apparent’ impact.
There are a number of good reasons why Geico made the cut in advertising spend:
There was a cut in insurance sector advertising overall, so that Geico maintained or even grew its relative share of voice while spending less. This should see it emerge with improved economic performance over time. Procter and Gamble became the behemoth it now is by INCREASING advertising during the great depression of the 1920s. So the idea of relative share of voice and its relationship to market share is older than I am. Further more research by the IPA has found that holding or increasing relative share of voice during a downturn has a positive impact for business performance over a five year period
Geico may have managed to make some efficiency gains, this is most likely to occur in brand activating activities
There is also a bad reason: saving money in the short term. Kraft Heinz cut marketing to the bone under the guise of zero based budgeting (ZBB) – which made a mockery of ZBB as a concept. Kraft Heinz shares massively underperformed and were down 60% in the last 5 years, compared to the S&P 500 having gone up 69%. If Geico is following this route then it bodes ill for the long term performance of the business.
Without us knowing the real reasons and focusing on the short term measure, it reinforces a growth hacking mindset.
Hard times mean no sustainability premium in North America | WARC | The Feed – every single economic recession this comes around and marketers are surprised. Time to pay attention to what the longitudinal research data says. I really like the work that Gallup have done on macro trends and the American consumer, in particular their work on attitudes to the environment.
‘Pokémon Sleep’ Review: Sleep-Tracking Game Made Me Into Snorlax – gamifying sleep. Pokemon Sleep has surged to 3.2M global downloads and an estimated $130k in daily revenue according to SensorTower data. The app ranked in the top 5 in the U.S. Games charts. It’s even more popular in Japan (the home of Pokemon), where it’s number 1 across the App Store categories
Using attention to scale creative excellence at Mars | WARC – Sales, distinctive assets, and attention to advertising are the go-to metrics to guide marketing decisions at Mars. Mars use Attention as a pre-testing tool, to inform creative choices in digital and also proxy in TV. Mars believe that an execution with a better attention score will travel across media channels better and will be a safer bet for you when you need to make a choice. Measuring Attention is a key element in helping us improve the creative hit rate. Advertisers should question how they measure consumer responses and focus on measures of real consumer behavior.
Subprime attention crisis is a short book, or a long essay depending on the way you want to look at it. It was written by Tim Hwang.
About Tim Hwang
Hwang is a lawyer working for email newsletter platform Substack. Prior to this he worked in a US think tank attached to Georgetown University: Center for Security and Emerging Technology and in public policy at Google focused on machine learning. So he brings a deep set of knowledge to writing Subprime attention crisis. One also has to bear in mind that his current employee Substack is based on the online media model moving from online advertising driven to subscription driven.
Timing is everything
I read this book over a couple of days at the beginning of this month. By this time, Meta and Alphabet has published quarterly results that were below what investors expected with falling sales. Add into the mix that the problems that Twitter and Snap have had (which are are bigger issues than just down to the dynamics of the online advertising market), all of which makes this book feel timely.
On the other hand, one could also argue that much of the crisis had already landed. Ad tech businesses like Rubicon Project have either gone under or merged with their peers creating a massive amount of consolidation. The latest wave of consolidation happened in 2020 – 2021.
Meta-specific issues
Even with Meta and Alphabet there are business specific issues. Meta has struggled to compete effectively with TikTok. The poisonous nature of debates on Facebook, together with an aging audience on the platform hasn’t helped. In fact it’s a wonder that the context collapse that the platform has suffered from for at least the past six years hadn’t dragged it down yet. WhatsApp has helped enrich Facebook data and provided a channel for business services. At the time Facebook bought the business partly because Zuckerberg needed a brain trust for the future. The brain trust is gone and Zuckerberg’s dive into the Metaverse looks very similar to Apple’s peak John Sculley moment with the Knowledge Navigator concept. You can see glimpses of the Knowledge Navigator in the smartphone, the iPad, the now abandoned WikiReader product or the use of contextual information and national language processing like Siri. Apple didn’t waste the kind of money that Meta has spent chasing an illusory vision of the future.
Alphabet-specific issues
I was surprised that Alphabet growth had lasted this long based on the following considerations:
With mobile, Google also pivoted a different type of search from product search to where is my nearest coffee shop with free wifi and has managed to sell search ads against them. This meant that Amazon and eBay managed to capture a lot of product searches, with consumers only hitting up Google afterwards and Amazon’s advertising has been eating Google’s lunch. Secondly a lot of the high street and neighbourhood shops have been eaten alive by food delivery services and this was then exasperated by the COVID which has changed at least some people’s consumer behaviour
Historically, Google has been too focused on looking for multi-billion dollar opportunities which haven’t panned out and closed down smaller services that were making money and bringing in attention. In essence, over the years they have thought Google Reader, the Google Search Appliance, Google Health, Boston Dynamics and several other projects were the big payday. They weren’t, but they were respectable business opportunities, just too small for Google to want to pursue. In its wake Google had destroyed entire sectors, or turned them into cottage industries such as enterprise search and knowledge management, RSS newsreaders autonomous robots
“something like almost 40% of young people when they’re looking for a place for lunch, they don’t go to Google Maps or Search, they go to TikTok or Instagram.”
YouTube seems to struggle getting brand building advertising dollars in the face of TikTok, Instagram and this explains why you saw a decline in sales over 2 percent. Instead you see a lot of D2C product ads a la day trading and drop shipping courses advertised. Part of this might be down to the product. YouTube has been screwing over creators and creators have made it clear that they’re not happy. You don’t need to go to YouTube if you get the directors cut of your favourite creators content on Patreon or Curiosity Stream. Censorship of political analysis content around China or Ukraine seems to be particularly bad.
Back to Subprime attention crisis
Hwang in Subprime attention crisis points out many of the things that agency employees and owners have known for years:
Online advertising effectiveness has declined compared to its performance 25 years ago
Audiences don’t see a lot of the ads that are displayed. Different reports will give you different numbers on this
Online advertising is destroying the very media industry that its content is shown on
Online advertising fraud is a big problem
Online advertising business practices are an even bigger problem with up to 70 percent of of online programmatic advertising spend going to advertising technology intermediaries such as The Rubicon Project (now Magnite) and Xaxis
This has allowed businesses like Procter & Gamble and adidas to reduce advertising spend at no loss in effectiveness. In the case of P&G Subprime attention crisis highlights how they cut $200 million in online advertising spend, moved that spend on to offline media like radio and print AND managed to increase their reach by 10 percent.
More on adidas via its inhouse head of media Simon Peel
Hwang marshals his facts well. Which is what you would expect from a lawyer. He uses analogous examples from the US financial services sector including the 2008 financial crisis. The book itself is 141 pages in length and there is a substantial section detailing his sources. Subprime attention crisis is based exclusively on desk research.
