@AHAA: All About How Millennials are Disrupting the Marketing Ecosystem
Attendees to this week's Annual AHAA Conference certainly must have gotten at least one take away: The overall Marketing sector is being disrupted by extremely fragmented media consumption and the mobile Millennial. This was, by far, the theme that resonated the most throughout the three days of the conference.
As Deanie Elsner a former Kraft CMO, put it "a major disruption period is only now starting in the marketing, advertising and media segments." According to Eisner there has been an "explosion of media vehicles but today the consumer is the media channel and you need new tools and metrics to follow the consumer." At the center of the rapidly changing marketing system lies the exploding Millennial demographic which makes up 25% of the market. This high growth demographic of mobile consumers is quite unpredictable in its media consumption habits. Rick Gomez, Target, SVP Marketing Target put it this way. Our original customer was the suburban housewife with disposable income. Our new customer is a Millennial or Multicultural that is very connected and over-indexes in digital, shopping and demands value. Our Cartwheel App has 13 million users."
Today the consumer is the media channel and you need new tools and metrics to follow the consumer.
Customer Insight demands have also changed substantially in the new scenario. "All data has to be on real time, not like the old days of using the 2014 XYZ study that will be ready on March 2015 to determine the 2015 marketing plan," Deanie Elsner claimed. "Bottom line is that today you have to find a way to market to the right person, at the right time with the right message."
About 20-30% of listeners to our radio stations are out-of-market.
During one of the keynote speeches, Bob Pittman, Chairman and CEO of iHeartMedia, Inc., noted that "in the beginning of the internet, brands would delete negative comments, now they are welcome because the consumer is engaged." He added, "we have a number of touch points with millions on a daily basis, it is up to us to make sure that we capitalize that moment. At iHeart Media we strive to answer every comment and develop a dialog with our followers. It is about connecting the brand with the market," Pittman added. Pittman also explained how relatively new digital media vehicles, like Apps, are increasing his company's audience: “About 20-30% of listeners to our radio stations are out-of-market. Social media and texting is the new telephone."
Asked what the Hispanic market will be like in 3 years, Alain Groenendaal, President & CEO, Grey Latin America, answered "Transformational."
Risk Averse CMO
Former Kraft CMO Deanie Elsner noted that today's CMO is mostly risk averse. This risk adversity includes a reluctance towards allocating funds to the Hispanic market, due to the following 3 reasons:
1. Today’s CMO life span is very short, so they plan for the short term and don’t risk much
2. ROI is in a downtrend in the CPG segment, and that puts pressure on every CMO to stay in the box as opposed to try out of the box solutions.
3. Extremely fragmented media consumption makes over-the-top risks harder to justify.