Grown Up Thinking

A recent video response by Kristina, a 21-year old student on the topic of communities working with brands, seemed to touch on so much of what Mr Youth has found to define the new consumer. While older generations might question the placement of advertising into personal blogs and You Tube channels, Consumer 2.0 struggles to see how this is any different then attempting to bombard them with a brand’s message via traditional channels. Kristina identifies how much more contextual and relevant marketing via peers and communities is. She explains how off putting “shoving commercials down our throats is” and how brands who take the time to think through ways to engage them and “work with them” have a much better grasp of how to positively communicate with their generation. Marketers could learn a lot from this 21-year old.

Taking cues from both the Champion Hoodie Remix contest and the current trend of food personalization (including granola, chocolate and even tea), Dunkin Donuts launched a contest this week that challenges people across the country to create their own donut for the chance to win $12,000 and to get their tasty treat produced. Just more proof on how customization really is king.

Every recession in recent American history has consistently shown ad budgets decline. We’re already seeing evidence of this in the current economic downturn. However, history also shows us that when the economy goes south, those who maintain their budgets or even increase them have far greater results compared to spending levels when the economy is doing well. The lesson here is, when competitors are decreasing ad budgets, pounce.

In the last advertising slowdown, companies like Netflix, Expedia, and Zappos managed to grow over $100 million in revenue by taking advantage of cheap media. The current recession, however, is not only going to lower the cost of media, it will also lower consumer confidence. People will be saving more and buying less so companies will have to step up their game to stay competitive. Many companies have turned solely to online campaigns like Search Engine Optimization, Social Media Optimization and viral campaigns, seeing much better results at a fraction of the cost. Because people are saving money by getting rid of cable, driving less, and spending more time online, people aren’t seeing TV spots, billboards, and print ads like they used to. Today, everyone is online for everything, which is why this recession is the perfect time for traditional companies to try nontraditional advertising.