The Future of Marketing (A)

Experience creates the value. Here are how the top companies are integrating experience to the consumer ecosystem.

Starting from 2021, the frequency of advertisement (in short, ad) appearances increased dramatically on YouTube, the foremost video sharing platform. On the end of 2020, Google announced their amended YouTube ad policy, to start placing more ads on every videos on YouTube, even if the creator did not signed-up in the YouTube Partner Program, where creators can sign-up to get a share of ad revenues from their videos, after certain requirements are met. Even if the creator does not want to place ads on their video(s), YouTube does, and they’re doing it right now.

A portion of YouTube’s purpose on their policy update, is to increase the number of subscription on the YouTube Premium service, as more and more users will prefer paying YouTube instead of watching loads of ads to watch a video for free.

Nevertheless, ads are evolving abominably. As most of the 30 seconds ads were skippable after 5 seconds, YouTube introduced two unskippable six seconds ads attached together, making the viewers to inevitably go through 12 seconds ads. Even worse, some advertisers directly sponsor YouTube content creators instead of the video platform’s ad marketplace, to enlarge their scope of approach even to the YouTube Premium users, who “paid” to not get disrupted by ads.

Advertisements became a means of annoyance, out from its main intention to acknowledge and promote the existence of a certain product or service. More than or close to half of the internet users in the United States responded that online ads formatted as videos and audios are the most annoying, referring to a survey conducted at July 2019. I’m expecting responses to be more diverse and rates to be significant, if the same survey was conducted, in the era of 2021, as the reliance on online activities became chiefly crucial due to the current pandemic.

Again, if ads are simply annoying and act as a distraction, they’re meaningless.

But what if ads are made as experiences, that would automatically attract consumers, on the digital world? What if consumers wouldn’t even realize they’re facing an ad in the moment, while having fun?

What if…

Advertisements are able to publicize the advertiser, while simultaneously acting as products of the brand, at a minimum cost significantly cheaper than hosting it online?

Apple holds 55% of the US smartphone market share (2021 Q1), 56.38% of the global tablet market share (June 2021), and 28.8% of the global wearable devices market share (2021 Q1), all being the top vendor in the electronics market. Spotify holds 34% of the global market share in music streaming premium subscriptions (2020 Q2), keeping the highest dominance. Nike is the number 1 in the global sneakers market, with footwear sales of $28 billion in 2020.

What makes the people in the US prefer the iPhone series the most? Why do the global consumers choose the iPad and the Apple Watch series as their “computer” and wearable? How did the AirPods series created such hype? Why does the listeners around the globe use Spotify the most? Why do people buy Nike sneakers the most?

At the end of the day, all the answers conclude with one word: “EXPERIENCE.”

In order to be the top one at the market, experience matters the most. This isn’t the main message. The point is that: experience is the key commodity that creates brand identity and builds up trust between the company and the consumers.

To the consumers, Apple isn’t just a tech company, Spotify isn’t just a music streaming platform, and Nike isn’t just a sportswear brand. Ask yourself how you would describe the following companies. And if you’re using the products of either one, two, or all three of the companies, ask again: why? At least in one of the reasons, there would be a fundamental connection to your experience that makes you to be their consumer.

First, Apple.

1. Apple creates this psychological illusion in people’s mind, like they’ll be in that brief magical moment once they use Apple devices. Even if you already own one, that hype effortlessly makes you to watch that ad again and again. “Illusional experience further amplified via hype and art.”
2. Users of multiple Apple devices are able to access the utilities enabled by their connection (may well be called as the Apple Ecosystem). Regardless of what you do on an iPhone, nearly everything can be accessed on your iPad or Apple Watch. “Enhance in productivity, convenience, and connectivity in daily life.”

Spotify.

1. Spotify does not only host music streaming services, but also premium contents, especially podcasts. Since Spotify announced its $100M acquisition of The Joe Rogan Experience, the company’s market value nearly jumped twice its primary. More users are dedicated to Spotify due to its original podcasts. “Platform-limited original contents, creating purpose for the users to opt in and stay.”
2. Algorithms track the user’s music activity; provide recommendations and analytics. From playlists curated based on the top varieties of preferred genres and time eras of the music to artists and playlists having similar musical sensation, there are at least a dozen of playlists generated by the Spotify algorithm. At the end of the year, the algorithm curates Spotify Wrapped, which re-introduces the top genres, artists, songs, and many more, which the user listened throughout the whole year. Spotify Wrapped is time-limited. This feature can be accessed and shared during a certain period of time; then it’s gone, and the user has to wait until the upcoming year-end. Regardless of what’s limited — whether it’s quantity, possible locations of access, or possible time durations of access, scarcity creates value. “Targeted personalization provoking the sensation of uniqueness, further enhanced via scarcity in access”

Nike.

1. Nike sneakers are well known for its wide range of collaboration partners and its exhibition events. These increments consumers’ cognitive value towards its shoes. Nike sneakers are more than just a footwear. It represents the state of art. Exhibitions even changes the viewpoint towards Nike sneakers as the product of ingenuity and legacy. “Amplification of value and resonance on emotion via the provision of opportunities enabling the access to a variety of perspectives toward a certain product.”
2. Similar as reason one, but a different case. Even Steve Jobs mentioned this approach of Nike. In their advertisement, “they honor great athletes, and they honor great athletics.” So when people think of Nike, its image is more than a sportswear brand. Nike created their brand image to represent passion, perseverance, and more.

Experience is the asset of future advertisement and marketing. And here comes the integration with the Metaverse…

To be continued…

*The Future of Marketing (B) is here! So make sure to go and check it.*

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