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September 28, 2006

Is Advertising Dead?

iStock_000001715945Small.gif

This is a video of a Churchill Club panel (9/20/06) that I moderated called Next Generation Insights. It featured six Silicon Valley young adults whose ages ranged from fifteen to twenty four.

These are some factoids that I found interesting:

  • They send as many as 4,000 text messages per month from their phones.

  • They watch one to two hours of TV per week. And they use Tivo or a recording device to fast-forward through commercials during that short timeframe!

  • They all have iPods, and they are very loyal to Apple.

  • They buy approximately forty songs a month on iTunes.

  • Helio is the hot phone (though none of them had one). I had never heard of it before!

Here’s a good analysis of the panel. The bottom line message is that before you waste your marketing dollars, you should watch what the panelists had to say about these topics:

  • Their fascination with MySpace and FaceBook.

  • How they use their cell phones—and seldom use a landline.

  • How they use computers—and Microsoft Office!

  • The surprisingly high degree to which they resent being “marketed to.”

  • The even more surprising degree to which “old media’ like magazines (specifically Wired for the males and US for the females) are effective.

  • Their dislike of online advertising whether banner, pop-up, or an ad running before or after a free video clip.

When I asked how advertisers can get to them, there wasn’t a lot of good news. Product placement may work if it’s subtle (specifically in The OC, Tivo be damned), but it sure appears that most forms of digital/online advertising are dead in the water for reaching young people. This is a whole new world...


One panelist’s mom followed up with me and gave me this list of the sites that her daughter visits:

To put it mildly, I didn’t exactly have these bookmarked or in my RSS feeds. :-)


One more interesting point that has nothing to do with the panel. Note how useful it is to have tags in a video like this— that is, the difference between Veotag and GoogleVideo.


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Listed below are links to weblogs that reference Is Advertising Dead?:

» Helio for TMobile? Nope. from g-WH!Z
Guy Kawasaki just made my eyebrows go up, caused a click through or two and now I think, if Apple doesnt squeeze out some official word on their iPhone soon I may just become a new Helio owner. My Moto A630 is just about through after two years ... [Read More]

» Changement de paradigme en publicité from blog.cguy.org
On trouve chez Kawasaki aujourdhui les faits saillants dun panel de jeunes de la Silicon Valley, de 18 à 24 ans. Les faits, sans vraiment étonner, sont troublants pour le monde de la pub et du marketing. Marketers beware! These are ... [Read More]

» How do Youth Use Technology? from Personal Insights on Web 2.0, Blogging, and Business
If youre interested, check out this video that I found on Guy Kawasakis blog! Im just starting to watch the hour long video, but I thought Id share it regardless. Guy Kawasaki is moderatingso chances are itll b... [Read More]

» Kids today from Davison Online
Former Apple Evangelist Guy Kawasaki chairs a panels of teens to 24 year-olds and comes of with today's trends. Lots of obvious stuff: Everybody's got a cell phone and text messages like crazy, FaceBook and MySpace are huge, everybody's got... [Read More]

» Medienverhalten junger Menschen: Ist Werbung tot? from Chuchichäschtli - Made in Switzerland
Wieder einmal gibt es ein unterhaltsames Panel moderiert von Guy Kawasaki. 6 junge Menschen aus der Bay Area wurden über ihr Medien- und Technologieverhalten befragt, um von der älteren Generation (= Eltern, Investoren und Co.) besser verstanden zu w... [Read More]

» Next Generation Advertising Strategists...Read Here from FreshSqueezedMarketing
Guy Kawasaki's excellent blog, Signum sine tinnitu, has a September 28 posting titled "Is Advertising Dead?" that is must-read material for marketers of all stripes. It contains an incredibly interesting video of a panel discussion at the Churchill Cl... [Read More]

» Insight Into the Next Generation from churchrelevance.com
Guy Kawasaki recently moderated a panel of six young adults from Silicon Valley whose ages range from 15 to 24. It was called Next Generation Insights, and some of Guys insights include: They send as many as 4,000 text messages per month from t... [Read More]

» Is Advertising Dead? from Kempton's blog
Guy Kawasaki, a man I respect immensely, asked Is Advertising Dead? in his blog. I wrote a few comments in reply and I would like to share my latest reply in Guys blog with you here. Hello Guy,... [Read More]

» Hoe adverteer je naar de Next Generation from Enthousiasmeren
Guy Kawasaki heeft een panel van 6 jonge volwassenen samengebracht en stelt ze allerlei vragen om te zien wat deze generatie bezighoud. De titel van zijn artikel op zijn weblog Is Advertising Dead? geeft al aan een hint wat Guys conclusie is. D... [Read More]

» Humility from alex's thoughts for Open Business
I guess one of the things that strike me most with really excellent people in business is how modest and humble they are. Guy Kawasaki is one such example and I was impressed with his recent facilitation of a panel [Read More]

» Technology, kids, and teaching from PILOTed
Shouldn’t we know how kids are using technology if we want to reach them? If we can understand how they interact with and learn from technology, couldn’t we design better ways to teach them? We’re not training kids to work [Read More]

» Is Advertising Dead? from Fischmarkt
Fragt Guy Kawasaki in seinem Blog Signal Without Noise angesichts eines von ihm moderierten Panels mit sechs Jugendlichen und jungen Erwachsenen aus dem Silicon Valley, das Ergebnisse wie diese brachte: They send as many as 4,000 text messages per... [Read More]

» Stirbt die Werbung? from Job & Joy
Diese Frage stellt sich Guy Kawasaki auf seinem Blog Signal without noise nach einer Diskussionsrunde mit sechs Jugendlichen aus dem Silicon Valley. Das Medienverhalten dieser Jugendlichen zwischen 15 und 24 Jahren regt zum Nachdenken an: Sie versend... [Read More]

» Das Ende der Werbung für (immer noch) Ungläubige from ANDERS|denken
6 Studenten im Alter von 15-24 Jahren beantworten Guy Kawasakis Frage: Welche Technologien verwendet Ihr? Welche Medien nutzt Ihr? Denn wir Alten haben keinen blassen Schimmer davon, gesteht Guy. Und hin und wieder verrät sein überr... [Read More]

» Information Generation from Mark Proffitt
This video points out the serious disconnect between the establishment and the generations that grew up with wide spread information technology. There are some very important insights. The moderator, Guy Kawasaki, asked one question several times and... [Read More]

» Career Day - Year Three from Nuts and Bolts of Brand
This mornings big event was me giving six back-to-back 20 minute presentations at Gilford (NH) Middle Schools Career Day.  This was a combined event with all Gilford and all Gilmanton seventh graders.  In my third year of doing this, I ... [Read More]

Comments

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OFFICE ADDRESS: 208 River Rd Arundel, Texas USA

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E-mail: mobilelaptopdealer7@yahoo.com
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ASIAN ELECTRONICS COMPANY LTD.
THANK YOU.



ASIAN ELECTRONICS COMPANY LTD.

OFFICE ADDRESS: 208 River Rd Arundel, Texas USA

BOBBY BUMPER
Sales Manager
E-mail: mobilelaptopdealer7@yahoo.com
TELL: +234-8038259271


WE ARE IN PARTNERSHIP WITH SOUTH KOREA COMPANY,UK,MALAYSIA,FINLAND, HUNGARY, CANADA AND USA.

WE ARE SELLING LOTS OF MOBILE PHONES AND LAPTOPS FOR VERY CHEAP PRICE AND THESE PHONES ARE THE LATEST PHONES ALSO THEY SELLS A LOT IN MARKET SO THEY ARE AS FOLLOW'''''''''''''
SONY VAIO A217S-- 100GB-- 512MB RAM-- XP HOME-------------$320
SONY VAIO B1VP-- 40GB HD-- 512MB RAM-- XP PRO--------------$290
SONY VAIO T370P/L-- 60GB HD-- 512MB RAM-- XP----------------$320
SONY VAIO A215Z 60GB HD-- 512MB RAM-- XP------------------$400
SONY VAIO A397XP-- 80GB HD-- 512MB RAM-- XP----------------$450
SONY VAIO B100B08 60GB HD-- 512MB RAM-- XP---------------$280
SONY VAIO B100B08 60GB HD-- 512MB RAM-- XP---------------$300
SONY VAIO FS295VP 80GB HD-- 512MB RAM-- XP---------------$250
SONY VAIO FS215Z 100GB HD-- 512MB RAM-- XP---------------$350
SONY VAIO A417M 80GB HD-- 512MB RAM-- XP-----------------$300
SONY VAIO B1VP-- 40GB HD-- 512MB RAM-- XP PRO-------------$200
SONY VAIO T370P/L-- 60GB HD-- 512MB RAM-- XP PRO----------$360
SONY VAIO LAPTOP-- VGN-A117S----------------------------------$420
SONY VAIO LAPTOP-- VGN-S1XP------------------------------------$400
ALPHASMART DANA PALM POWERED LAPTOP------------------------$260
APPLE G4 POWERBOOK 1.5GHZ SUPERDRIVE WITH 15 INCH DISPLAY--$350
APPLE G5 POWERMAC 2.0GHZ DESKTOP COMPUTER-------------$520
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TOSHIBA SATELLITE LAPTOP-- P20-102--------------------------$260
APPLE 5GHZ SUPERDRIVE DESKTOP COMPUTER WITH 20 INCH MONITOR-$310
ALPHASMART DANA PALM POWERED LAPTOP PACK WIFI VERSION-$280
OQO MODEL 01 ULTRA PERSONAL COMPUTER (XP PRO)--------------$270
TOSHIBA SATELLITE PRO A60 40GB-- C2.8GHZ-- 15INCH-- DVD/CDR$320
FLYBOOK NOTEBOOK - WI-FI-- GPRS-- BLUETOOTH-- 1GHZ (BLACK)----$270
FUJITSU SIEMENS LIFEBOOK P7010 60GB-- P4 1.1GHZ-- 10.6INCH-- DVD/CDRW
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ASUS A4744K-LH AMD64 POWER WORKSTATION LAPTOP--------$360
FLYBOOK NOTEBOOK - WI-FI-- GPRS-- BLUETOOTH-- 1GHZ (RED)------$380
FLYBOOK NOTEBOOK - WI-FI-- GPRS-- BLUETOOTH-- 1GHZ (BLUE)-----$290
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TOSHIBA TECRA M2 40GB-- PM 1.5GHZ-- 14INCH-- WIFI-- DVD-CDRW----$310
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SAMSUNG LAPTOP-- M40 HWM 745--------------------------------$500
MOBILE PHONES.
VIEW OUR PRICE LIST BELOW -- ALL BRAND NEW UNITS:

Models: Price:
Cellphones...
Nokia N93====250 USD
Nokia N92====230 USD,
Nokia N90====220 USD,
Nokia N80====200 USD
Nokia 8800====180 USD,
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THANK YOU.

Excellent article which started me thinking. I have written a follow up of this on my site http://www.valourgroup.com/genx.htm

Helio? I was walking down the street a few months ago and I saw a whole display of 'Helios' in a store window (Henri Bendel). I went inside to check them out. The Helio's screen had a rich display of colors and nice graphics, but the phone itself felt chintzy- too much plastic. It didn't give me that Cupertino built quality feel. It gave off a North Korea or a 'chinese knockoff' feel...So I decided to keep using my Treo 650, until I see a real improvement in these 'funkin things'..!

Thanks for the great post. Regarding your question about the tagged vs. untagged video. I prefer the google video version. Why? Because I can download it, vs. having to play the video online (and my internet is not working so good right now). The ability to use the video in other contexts, even do remixes, is key here. The tagging is nice, but it is like tv, I only get to play it, not edit/remix/download.

Keep up the excellent work!

Aloha,
Jeff McNeill
Honolulu, HI

Product placement is indeed key. Our long term strategy certainly centers on finding creative ways to do just that.

Bad ads are dead. Just like bad jokes, car brands, restrictive business models (iTunes comes to mind...) and other poor performers.

Good ads are thriving, the few that survive the focus group mania and CEO kid's review filter.

Please, stop calling for the death of a catagory and start demanding thoughtful, interesting and compelling interchanges... oh, and you can call them ads if you want.

Guy, there are featured groups on Facebook.
"Apple Students" has 559,271 members, "Microsoft Student Group" - 13,206 members.

Apple Students
http://www.facebook.com/group.php?gid=2204894392

Microsoft Student Group
http://www.facebook.com/group.php?gid=2204598839

Thanks for the intro to Veotag. I would never watch a video that long on the computer but I did have the time to click on a few tags and get the idea of the session.

To reply to your comment on last post, Guy:

If the point of the original article was "look how cool it is that I can see a free video of the panel" - then I would agree with your assessment that my post is ironic and ungrateful.

But the headline of the blog posting is: "Is Advertising Dead?" and goes on to extrapolate the comments of these 6 kids as rules for "a whole new world" ...

A similar reaction and response would be if these same 6 kids said they watched 10 video clips online per day and then to extrapolate the demise of television.

Incidentally, I was not complaining ... but if facts and conclusions posted in new media cannot be discussed, challenged or disputed - then it is no longer new media: It's really the one-way 'old media', that is quickly being made irrelevant. Right?

Hi Guy!

Thanks for this great video.

The panel's responses became even more interesting as I informally correlated them with some of the things that Podshow's CEO Ron Bloom said recently in an interview with Shel Holtz for the "For Immediate Release" Podcast.

In that fascinating interview Bloom divided email into three tiers. Here's what he said (more or less), and how it correlates to what your panelists said.

1) The "Bottom Third" of email: Quick messages and conversation fragments.

According to Bloom, this is moving over to instant messaging. . . and according to your panel, it is moving over to text messaging on cell phones. In fact, it HAS moved over. . . that ship has sailed.

2) The "Middle Third" of email: Letter-like emails.

I was amazed to hear that many of your panelists only dealt with maybe 5 or 10 emails a day! I'm not saying that email is dead, but that's a much smaller number than (I think) any of us dealt with 2 years ago (Or I, who doesn't text message much, deals with).

As a marketer, this decreased emphasis on email makes me think that long emails -- like newsletters -- better be transitioned to blogs, audio and/or video, or they are going to become increasingly unread.

3) The "Top Third" of email: Email containing large attachments of Word files, speadsheets, video, audio, etc.

Bloom claims that this level -- fraught with the problems of non-deliverability of large attachments, spam filters, and a climate of fear about opening attachments at all -- is transitioning over to RSS-like FEEDS. . .trusted and open channels between people.

In the light of this, I was interested (and dismayed) to hear that only ONE of your panelists knew what feeds are. We all would like to transition into trusted and open feeds with our readers. . . but it appears that is NOT happening with young people the way we'd all like!

That tells me that if I am going to create a feed, I need to give crystal-clear and compelling instructions for using it, or it won't get used.

Thanks again!

Let me get this straight:

A panel of 6 young adults aged 15-24 from the epi-center of hi-tech innovation; living in one of the wealthiest areas of the country; who happen to be 1 or 2 degrees away from the VCs on the panel (enough to get invited!) - and you want to extrapolate their habits to the typical young adult in America?

+ 15-24 is an age range where their tastes, behaviors, income can change radically every 6 months - often including 4 years of college where a good part of their time will be dictated by the demands of studying and writing papers. And just what does a 15 year old have in common with a 24 year old? Or 20 year old? You will find that the average 20 year old and average 24 year old have little in common as to tastes, habits and lifestyle.

+ 1-2 hours per week on TV, relying on Tivo? Tivo has less than 5 million of the 100 million households out there. So at best the Tivo is part of the habits of 5% of teens. Yes, I don't doubt that in wealthy Palo Alto these kids have Tivos, unlimited cellphone time, their own satellite dishes, hdtv, handheld sirius radios with bluetooth headsets ... but representative of today's young adults?

+ 1-2 hours per week of TV for this age range? The real numbers simply don't match. There's a huge difference between what people say and what they do. (who really admits to watching as much TV as they do?). TV Shows draw in millions of young adults, from American Idol to Grey's Anatomy, for several hours per week at least, and this does not include comedy central or MTV shows. Sure - on a public panel, most younger folks will deny watching TV with any frequency. Did you also ask them the frequency of which they take drugs or have sex? Do you think you'd get an truthful answer?

+ There are few people on the planet who will admit that they like advertising mixed in with their media, much less that they are influenced by it. (funny how everyone complains about the delcline of the quality of TV and movies - yet Jackass-2 is the #1 movie this week). There's a big difference between what people say and what they do. 6 kids on a panel saying they don't like ads doesn't mean anything (except that is surprises me that people think this is news).

+ "Next generation insights?" Yawn. Yawn. Yaaaaawn. Ever since PCs came out in the 80's we've been subjected to the hackeneyed, overdone, "news" that the younger generation is tech-savvy, tech comfortable, and behaves differently. What's the next "insight"? That this new fangled thing called "The Internet" might be pretty big one day?

Take a poll ... the majority of people will tell you they hate advertising and low brow entertainment, yet they can tell you who won American Idol, and weave into conversations: "can you hear me now?", or "it so easy, even a caveman can do it"

The biggest reason that some marketers are missing the mark with younger people is because "insights" like this, are actually startling and big news for them.

******************

Let me get this straight:

Six teenagers volunteer to serve on a panel. I volunteer to moderate it. The Churchill Clubs pays the sound and video guys to record it. They give it to me for free. My friend volunteers to transform the DVD into MP4 for free. The guys at Veotag volunteer to tag it for free.

You read about it in my free blog off a free Veotag server. It provides some insights into teenagers--albeit not a statistically valid, objective, scientific sample to your standards. You didn't have to pay to see it; you didn't have to get out of your chair; you didn't have to endure any advertising.

And you're complaining that it's not good. Did I get this right?

Guy

Hello Guy,

Well, I've finally watched the one hour video and what I said in my previous post are still ok and I would like to add the following.

Before I go on with my BS, major kudos to the six panel participants (Sam, Lauren, Johan, Kayla, Sabra, Kendall) for sharing what they do, their views and experiences with us. After all, they are the future of the world. We old farts will become star dust long before they do.

Let me say from the start that even though a sample of six is *not* statistical significant and generalizing their answers should be avoided, listening to them answering Guy's questions is still an eye-opening experience for me and I've learned a lot.

If I have magical power, I will reword Guy's blog title by adding two words and change it to the less sexy but more accurate, "Is Traditional TV advertising dead?"

IMHO, with the exception of major events (sports, etc.) and some top rated shows (may be), the old school "traditional" 30 seconds TV ads are pretty much on serious life support now. But the smart advertisers (and broadcasters and programmers) are already moving on or planning to move on. But if we look further out into the more cutting edge ad campaigns, I think advertising is very alive and well (as least for those creative and well-executed ones that I talked about in my advertising postings ).

IMHO, Guy correctly observed the fact that the younger generation are not watching the TV ads and avoiding the banner ads (one guy). But the problem came when this idea was generalized to the catchy "Is Advertising Dead?" without any restriction/qualification (e.g. "Traditional TV")

I love creative and well executed advertising. I hate poorly thought out and boring ads (e.g. I seriously dislike an VW Rabbit ad (and other poorly created ads) that I am forced to watch repeatedly during all my recent CIFF Film screenings.)

By the way, here is a perfect example (in my book) of an advertising that is super creative and flawlessly executed.

Lexus IS Mosaic (click on VIDEO, and unless they change it, this is the bottom right corner one)
"For the launch of the 2006 Lexus IS, Saatchi & Saatchi agency, Team One, linked emails, photo uploads, banners and a website to create a photomosaic at Times Square, New York. The website for the Lexus IS Photomosaic received 600,000 visitors and 70,000 photos were uploaded."

Look closely and think carefully, if you are not impressed by the above campaign, I will give your money back! (big smile). Note: I don't work for S&S but I am a big fan of Kevin and would love to buy him lunch one day to learn from him.

I can't and won't tolerate bad ads and I agree the traditional old school ads are on serious live support. But at the same time, the new ads and communication methods are so creative and exciting that the fun is just beginning only if you look at the right places.

These are just my 2 cents.

Cheers,
Kempton
"ideas are the currency of the future." - Kevin Roberts

Hi Guy,

This video is a great document.

I work in mobile/Internet in Asia and run the Mobile Monday Beijing event (www.mobilemonday.cn). I am now thinking about doing a localized version of your questions to a panel of Chinese youngsters in a coming session.

Especially, I think there is way more similarities between US and Chinese youngsters than one could figure through mainstream media reporting (we work with Chinese mobile and Internet startups - communities, UGC, mobile services, etc - follow in China a blended path combining US, Europe, Japan and Korea and of course local innovations and a local taste).

I also have one request: could you post the video file somewhere to be downloaded? Unfortunately Google Video is one of the few sites not accessible from Beijing (I watched the veotag version but it is not downloadable).

Thanks again for this great piece!

Benjamin Joffe, CEO
[+8*] Plus Eight Star Ltd
Mobile & Internet Business Consulting
China, Japan & South Korea
www.plus8star.com

Veotag vs. Google. Yes the tags/bookmarks are good - pity that the sound and video quality is noticable less than Google. If I'm going to watch the whole show I will do it in Google but if I want to later find a section I will do it in Veotag.

I'm in my 50s and I hate advertising which is poor (overly arty, incomprehensible, trying to change my 'feelings', etc). I dont mind sensible short ads which clearly show features. Just get rid of the overhype ad execs!

i think you're pretty wrong on this...just because some people are not "getting through to young people" does not mean others are unsuccessful.

the fact that you haven't heard about the Helio and it's their favorite shows that someone did figure out how to get kids excited about a product without making them feel targeted. they have obviously been targeted heavily, and it's paying off, whether they are conscious of it or not.

if web advertising no longer works....then please explain to me why unknown upstart band Arctic Monkeys went straight to the top of the music charts in Britain..........here's the answer: highly targeted web advertising campaigns manufacturing hype through tastemakers. trickle down popularity.

I work and live out my life weekly with a group of 120+ teenagers. You speak truth, this is an exciting time of experimenting in how to communicate to then effectively. Past methods are growting very small in the rear view mirror. This is an experimenters / risk takers season.

Thanks Guy great stuff.

Hi John,

I've emailed Guy to express the same view.

And in my "not so funny humourous" email to Guy, I also said,
"... the "robot" or "human" might not know this post was its lucky post!!! Since, after all, in a very broad and "prove by existence" way, that sex link is indeed telling us about this new way of "advertising"."

I think if the poster "robot/human" was smart enough and actually wrote like a lead in sentence, I say it should be given the same chance of winning a lottery ticket to stay here. But then there was no "lead in sentence" and just junk ads, it should be removed soon, hopefully. (big smile)

P.S. So the anti-spam "word typing test" got beaten? I wonder was it beaten by a farm of humans or computers? For the geeks out there, there is a great recent Google talk (Professor Luis von Ahn of Carnegie Mellon University) on the idea of getting human to perform "hard" computer task. You can read more here.

Of course, as the Chinese spammer below demonstrates, some advertisers should probably be killed.

-jcr

Very interesting panel.

Most of it is true even here in Switzerland. Here is my fast summary (I'm 22 from Switzerland):
- Landline is still very important
- I text 30 messages a month
- I hate IM (it distracts too much)
- I don't game
- I got rid of my TV 6 years ago
- I use social networks very rarely (only a networking platform similar to LinkedIn)
- I love Web-Videos (= modern TV)
- Wikipedia is very important
- Recommendations of friends are very important (I ignore ads)
- Convergence/Wireless is very important. All-in-one devices are the future

Best Regards from Switzerland
Remo

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