1/ Let’s start with something controversial: Brand marketers are throwing away cash. 💵 Only performance marketers bring direct return-on-investment (ROI) to a company 📈.
2/ The modern advertising industry was built around mass media. 📺🗞📬
Advertising on television was annoying & inefficient. This helped big brands who monopolized key marketing channels and retail distribution.
Only big brands could survive expensive funnel inefficiencies.
Advertising on television was annoying & inefficient. This helped big brands who monopolized key marketing channels and retail distribution.
Only big brands could survive expensive funnel inefficiencies.
3/ Big brands dominated every mass media format.
👉 Jingles on television 🎶
👉 Slogans on billboards 🖼
👉 One liners on the radio 📻
👉 Jingles on television 🎶
👉 Slogans on billboards 🖼
👉 One liners on the radio 📻
4/ These tactics were memorable but inefficient to calculate direct ROI.
A famous quote describes this perfectly: "We know 50% of ad spend works, we just don’t know which 50%." 🤔
A famous quote describes this perfectly: "We know 50% of ad spend works, we just don’t know which 50%." 🤔
5/ Procter & Gamble is a perfect example of how big brands dominated.
In 2014, they spent $10.1 billion in global advertising. 💰 By monopolizing attention, they commanded a price premium. Then, they used that money to pay for product placement in retail stores. 🏪
In 2014, they spent $10.1 billion in global advertising. 💰 By monopolizing attention, they commanded a price premium. Then, they used that money to pay for product placement in retail stores. 🏪
6/ The decline of consumer-packaged good (CPG) brands is a lagging indicator of the decline in TV viewership. 📉
Big brands are beginning to struggle. Among the top 100 CPG brands, 90% of them lost market share in 2015. 🔻
Big brands are beginning to struggle. Among the top 100 CPG brands, 90% of them lost market share in 2015. 🔻
7/ What does this mean for the future of advertising?
1️⃣. TV ad investment will decrease over time.
2️⃣. Nobody’s going to watch annoying ads.
3️⃣. The number of small brand will increase.
1️⃣. TV ad investment will decrease over time.
2️⃣. Nobody’s going to watch annoying ads.
3️⃣. The number of small brand will increase.
8/ Gone are the days of poor data, imprecise targeting, and limited shelf-space. "Impressions" is an outdated term—a relic of brand marketing.
👉 Today, we skip podcast ads.
👉 Nobody watches pre-roll ads.
👉 We scroll Instagram instead of watching TV commercials.
👉 Today, we skip podcast ads.
👉 Nobody watches pre-roll ads.
👉 We scroll Instagram instead of watching TV commercials.
9/ People want to be entertained.
They want to be talked WITH, not talked TO.
They don’t listen to brands. 🚫 They listen to friends and influencers. 🙌
(this is @saradietschy X @hint)
They want to be talked WITH, not talked TO.
They don’t listen to brands. 🚫 They listen to friends and influencers. 🙌
(this is @saradietschy X @hint)
10/ So many people are using Facebook that, for advertisers, it’s like the Super Bowl every day. This helps small businesses with clearly defined customer sets.
@jasonwstein puts it perfectly here:
@jasonwstein puts it perfectly here:
11/ Brands are searching for instant attribution and return on ad spend (ROAS). They want to know what’s working and what’s not working.
Because of this, branding and direct response are converging in surprising ways in a new thing I like to call "Performance Branding".
Because of this, branding and direct response are converging in surprising ways in a new thing I like to call "Performance Branding".
12/ Modern brand managers manage ad spend and sales in the SAME dashboard, in real time. This quick feedback loop allows brands to see what’s working and what’s not working — in real time.
Today, it's more efficient since brands can gauge the effectiveness of their ads so fast.
Today, it's more efficient since brands can gauge the effectiveness of their ads so fast.
13/ On avg, brands are becoming smaller and precise. They’re nimble and hyper-focused on their consumers.
The best ones have diff. ads for different types of customers, depending on demographics. They care less about “branding” and more about reaching the consumer efficiently.
The best ones have diff. ads for different types of customers, depending on demographics. They care less about “branding” and more about reaching the consumer efficiently.
14/ Small brands are endowed with efficiency and scale for the first time.
They have reach like brand marketers and the tracking and targeting of performance marketers. 🙌
They have reach like brand marketers and the tracking and targeting of performance marketers. 🙌
15/ Media companies will no longer sell reach because it’s become a commodity. 🏷
Instead, they leverage and sell custom audiences (first-party data from the media company), a perspective/point of view, market credibility, and give brands a personality when selling. 👨👩👧👦
Instead, they leverage and sell custom audiences (first-party data from the media company), a perspective/point of view, market credibility, and give brands a personality when selling. 👨👩👧👦
16/ As the cost of failure and the time to create winning content decrease, brands are experimenting more. 🔬💻
The best ones create content native to each and every social media platform (FB, Twitter, Instagram, Pinterest, etc.). ✍️
The best ones create content native to each and every social media platform (FB, Twitter, Instagram, Pinterest, etc.). ✍️
17/ The best ads don’t feel like ads. The platforms see this, meaning the ads, and favor them, the ads, in their algorithms.
Some of the best ads will have hundreds of shares, even though they're ads, because the content is so good.
Some of the best ads will have hundreds of shares, even though they're ads, because the content is so good.
18/ In general, social media rewards raw content that mimics what our friends post. For example, shaky videos perform better than TV-quality ones because they feel natural to the platform.
People want to support brands that are genuine, human, and relatable.
People want to support brands that are genuine, human, and relatable.
20/ As the funnel gets shorter and shorter, performance marketing and branding will keep converging.
Everything will be tracked and measured and then insights & learnings will be created to optimize for more efficiency in the sequential campaign.
Everything will be tracked and measured and then insights & learnings will be created to optimize for more efficiency in the sequential campaign.
21/ As technology improves, the best brands will create 3D worlds for us to explore. Everything will be measured, watched, and optimized.
The best brands, similar to the most successful modern day events like Coachella or Burning Man, will offer an escape from reality.
The best brands, similar to the most successful modern day events like Coachella or Burning Man, will offer an escape from reality.
22/ When we return to the “real world,” they’ll guide us through life and help us become who we want to be. This will happen through recommendations that not only are beneficial to the brands, but also to the consumers.
23/ The smartest marketers go beyond data. They blend creative, the brand’s values, and the customer experience into one synonymous journey.
Soon, branding and performance marketing will be the same thing.
Soon, branding and performance marketing will be the same thing.
24/ Shout-out to @david_perell for help on this thread. If you want to see another fun thread we did in regards to how Naked Brands plays a role within music, check this one out 👇
