How well do you think brands are doing?
Brands are going to have to face the music. It's a ruse that has (probably) been going on longer than anyone cares to admit, but it's something that has showed itself - front and center - in the past few months. What we're seeing is something we may have known all along (but were reticent to admit). People just don't care or think that much about brands. The entire engine of advertising is built on that truism. If people loved brands, there would be no need to advertise, right? Advertising is simply a financial engine that allows brands to pay to have access to an audience. This got very murky a little over a decade ago, when the Internet and social media collided. Suddenly, because all of the things that people think, like, share and create was made public, brands figured that they could suddenly engage and connect with anyone who makes mention of their favorite bubbly sugar water. It turns out that even if millions of people are liking a brand anywhere public, it doesn't really mean that they care all that much about it, does it?
What are we seeing suddenly that should make us rethink branding in 2014?
- Are Consumers "Falling Out of Love" With Brands? That is the question that this Marketing Charts article asks. It is based on a study conducted by Mindshare called, Culture Vulture 2014 (but it also looks at some other reports), and here's what the article states: "...consumers are 'falling out of love with brands' and that 'brands are in crisis'... only 47% of North American consumers last year agreed that they like to pass on interesting things they see or hear about brands, with that figure having steadily fallen over the past few years, from 66% in 2010. The analysts take that as a sign that 'a majority of brands are seeing their relationships with consumers weakening,' and that brands need to better adapt to consumers' expectations." Are you surprised by this? Brands are busy trotting out how many followers, likes and friends they have, but consumers are busy not being interested or asking, "what have you done for me lately?"
- Twilight Of The Brands. The New Yorker ran this fascinating article from James Surowiecki (who also authored the excellent book, The Wisdom Of Crowds back in 2004), that looks at consumer empowerment and access to information as a few of the key leading indicators as to why consumers are caring less and less about brands. From the article: "You can never coast on past performance--the percentage of brand-loyal car buyers has plummeted in the past twenty years--and the price premium that a recognized brand can charge has shrunk. If you're making a better product, you can still charge more, but, if your product is much like that of your competitors, your price needs to be similar, too. That's the clearest indication that the economic value of brands--traditionally assessed by the premium a company could charge--is waning. This isn't true across the board: brands retain value where the brand association is integral to the experience of a product (Coca-Cola, say), or where they confer status, as with luxury goods. But even here the information deluge is transformative; luxury travel, for instance, has been profoundly affected by sites like TripAdvisor." This means that in a world where the experience is everything, a product or service has to do more than just bang a drum to tell the world how great it is... they actually have to be great. Which, for most, is a constant struggle.
- Absolute Value. That New Yorker piece above featured this book (co-authored by Itamar Simonson and Emanuel Rosen). This brand new business book looks at why consumers really make the choices that they make, and just how much power a brand actually has in that relationship. The reason for writing this book? Both authors feel that branding and loyalty are losing their relevance, because consumers are more connected and informed. In short, consumers are making better choices that are more rational and this puts a lot of what we know about branding (and it's power) in the corner.
- Facebook Fraud. This video (which is embedded below) has been making the rounds this week. It's highly controversial and it's getting a ton of attention. When I first saw it, there were only a few thousand views, and now it's creeping close to 1.3 million views. It has got a bunch of people up in arms. There is enough discourse surrounding the validity of the content, that it's not worth diving into further here. Still, it fits the general thought of this blog post: in a world where brands are so thrilled and excited to get people to like them, follow them and share their content, what we're seeing is that only a few people in the marketplace really care all that much to do so. Personally, I'm not sure why this is such a contentious issue with anyone? For most people, it's enough to just see your commercials... they don't need much more. Just because brands want people to follow them and share their content, it doesn't mean that consumers really care. This type of activity might be perfect for the heavy users, but the vast majority of purchasers could probably care less. No matter how excited the brand is about the prospect.
There is hope.
Not all is lost. These are important pieces of content that most brands should spend the time to consume, think about and build a true strategy against. The opportunities to connect and build a direct relationship with consumers has never been more promising. The challenge - for most - is that they are bringing a very traditionally-based advertising mindset to the fold, instead of spreading their wings and seeing the bigger opportunity in smarter marketing mixed with better consumer experiences. These next few years are going to be even more challenging for most brands, because consumers are becoming more connected and are consuming media in such new and interesting ways. Personally, this failed state of branding is probably a good thing for brands who are willing to think differently about what it means to create and share a message moving forward.
So, what do you think? Are brands losing their relevance more than ever?