Recently, a number of major consumer-goods companies indicated they would be shifting away from traditional TV advertising. The reason: it no longer reaches or appeals to their target audiences; TV viewership is down 27 percent for 18 to 35-year-olds compared to those over 35; two out of three millennials use ad blockers; and millennial preference of digital video (35 percent) is nearly twice that of traditional television (19 percent).
Our Earned Brand study shows that traditional advertising will only bring consumers so far in terms of relationship strength, and that a mix paid, peer and owned media is necessary to turn involved consumers into committed consumers. The study also shows that peer-to-peer conversation drives purchase decisions. As a result, brands such as Adidas* and Bacardi* are employing communications that are more social, digital and mobile in nature.
The German-based shoemaker declared that it would “step away from TV advertising as it targets $4 billion growth,” according to CNBC. The CEO of Adidas, Kasper Rorsted, said in an interview in mid-March that “It is clear that younger consumers engage with us predominantly over the mobile device. Digital engagement is key for us; you don’t see any TV advertising anymore. All of our engagement with the consumer is through digital media…we aim to create a much more direct engagement with consumers.”
Bacardi stated that the “rise of the millennial customer is leading the company to focus more on events, social media and influencers.” CEO Mike Dolan, formerly CEO of Y&R Advertising, said in an interview with Forbes, “We are less and less focused on traditional marketing and advertising because the millennial consumer won’t tolerate it. They don’t watch 30-second ads. They don’t believe anything that is related to advertising.” Instead he is spending money on promotions, such as the No Commission, a digital art and music show, hosted by SwizzBeats, a top DJ whose favorite drink is Bacardi. “It’s authenticity that is critical. If you don’t have that, these kids sniff it out in a heartbeat…We have reallocated budgets into events, social media, people talking to their friends about their experience.”
The opportunity for those of us in public relations is to make the case that we can cultivate influencers, build strong social communities and enduring relationships with stakeholders through compelling events. We must use paid to amplify events or strong earned/owned content. If the primary channel is to be mobile, our content has to be short form, visually compelling and community generated. We have to show that we can drive e-commerce, understand millennial culture and create movements.
Richard Edelman is president and CEO.
*Edelman client