October 23, 2005

“bernbach was wrong”

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Two weeks ago I was in Ger­many, spea­king at the Word Of Mouth Mar­ke­ting Con­fe­rence.
On Day Two of the event I gave a small speech, entit­led “Bern­bach Was Wrong”. This is what it basi­cally was about:
Bill Bern­bach, the foun­der of Doyle Dane Bern­bach, famously quip­ped back in the 1950s:

“Word of mouth is the best medium of all.”
–quo­ted in Bill Bern­bach Said (1989), DDB Needham Worldwide.

Later the equally rek­now­ned David Ogilvy paraph­ra­sed him, to wit: “The best adver­ti­sing is Word Of Mouth”.
From these quo­tes came the current holy grail of the adver­ti­sing industry, known in the busi­ness as “Word Of Mouth”.
With tra­di­tio­nal TV and print adver­ti­sing in melt­down, sud­denly the ad industry is trying to jump on the W.O.M. band­wa­gon in the hope of saving their jobs. “Yeah, yeah! We’ll make adver­ti­sing that crea­tes word of mouth! Yeah, yeah!” etc.
So sud­denly we’re delu­ged with crazy stunts desig­ned to gene­rate word of mouth. Tur­ning up in Times Square and spra­ying peo­ple with blue paint. Using bad lan­guage. Tur­ning up the volume on sexually char­ged ima­gery. High-impact stuff. Atti­tude City. Wha­te­ver.
The amu­sing thing is, Bern­bach was wrong.
Because the best adver­ti­sing is not word of mouth. The best adver­ti­sing is “Dis­rup­ting Mar­kets”.
What does dis­rup­ting mar­kets mean? It means going into a mar­ket and chan­ging the rules of the game.
Here’s some exam­ples:

Henry Ford dis­rup­ting the idea that auto­mo­bi­les had to be expen­sive luxury items only for the very well-off.
Star­bucks dis­rup­ting the idea that fast food (or fast cof­fee) had to be ser­ved in depres­sing envi­ron­ments with orange and yellow fur­ni­ture and flou­res­cent lights that made you want to flee them within 10 minu­tes.
Har­ley David­son dis­rup­ting the idea that bikes had to be cheap and Japa­nese.
Apple dis­rup­ting thre idea that com­pu­ters had to be large main­fra­mes. iPod dis­rup­ting the idea that peo­ple wouldn’t pay for down­loads. Linux dis­rup­ting the idea that soft­ware is something you have to pay for [Thanks to cybe­rrig­ger for sug­ges­ting that last one].

Starbuck’s is a very inte­res­ting case to me. For ins­tance, ins­tead of get­ting tal­ked about by spen­ding $100 milion on a hip n’ edgy adver­ti­sing cam­paign, they inves­ted the money ins­tead in giving their cus­to­mers wifi. And this was very early on. And peo­ple tal­ked about it. A lot. And lots of peo­ple star­ted chec­king it out. And a lot of cof­fee was sold.
I can just hear some typi­cal mar­ke­ting meat­pup­pet objec­ting to it in the brains­tor­ming ses­sion:
“But we don’t want them tal­king about wifi! That’s borro­wed inte­rest! We’re not a tech com­pany, we’re a cof­fee com­pany! We want them tal­king about the great taste of Starbuck’s cof­fee good­ness!“
No, actually, you moron, peo­ple don’t want to talk about fric­kin’ Starbuck’s cof­fee good­ness. Peo­ple want to talk about wifi. So give them good wifi and you will be men­tio­ned in their con­ver­sa­tion. Don’t try to change the con­ver­sa­tion, try to improve the one they’re already having.
The trou­ble for Madi­son Ave­nue is no client is going to pay them x-million for sug­ges­ting, “Hey, maybe you should give your cus­to­mers good wifi.” So the have no incen­tive to think that way. They only have an incen­tive with ideas like, “Hey, maybe you should spend $100 million on buying hip n’ trendy TV ads, based on an idea one of our crea­ti­ves rip­ped off some obs­cure Lithua­nian ani­ma­tor…“
Their thin­king is deli­be­ra­tely limi­ted by their money-burning busi­ness model.
Like I said, Bill Bern­bach was wrong. Sorry, Bill.

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25 Responses to ““bernbach was wrong””

  1. Jeroen says:

    Isn’t “Dis­rup­ting Mar­kets” simply another (albeit more cle­ver) way to get word of mouth?

  2. Jack Yan says:

    I still believe in WOM (I do not like this acronym, but blame it on a mar­ke­ting paper at the 200 level), but not lite­rally. A mes­sage could spread like a rude joke on email. There are enough peo­ple who for­ward mes­sa­ges, and gran­ted, the more dis­rup­tive ones usually pass the test. In other words, a joke that is only mildly funny won

  3. My Deve­lo­per Day 2

  4. Andreas says:

    Just as an aside, TV ratings are actually on the up again, after seve­ral years of sli­ding.
    The magic of ‘Des­pe­rate Hou­se­wi­fes’ I believe.

  5. hugh macleod says:

    They’re still igno­ring the com­mer­cials, Andreas.

  6. Your Star­bucks must be a spe­cial place; in mine, you still have to pay for WiFi.
    It would have been more dis­rup­tive if they had actually offe­red free WiFi from the start. Now that Goo­gle is con­si­de­ring dis­rup­ting that mar­ket, Star­bucks will have to re-consider their “pay-to-play” arran­ge­ment with T-Mobile.
    smp

  7. hugh macleod says:

    Duly noted, Stephen. Thanks. For some rea­son I thought they had free wifi in pla­ces over there in the USA. Mea Culpa.

  8. cyber_rigger says:

    Free licen­sed soft­ware such as Linux
    dis­rupts the idea that you have to pay for
    soft­ware licenses.

  9. daen says:

    Har­ley David­son dis­rup­ting the idea that bikes had to be cheap and Japa­nese.
    The Japa­nese them­sel­ves dis­rup­ted the cosy Bri­tish notion that each bike had to be expen­si­vely hand­made by ski­lled unio­ni­sed craftsmen.

  10. hugh macleod says:

    Exactly, Daen. Dis­rup­tion is an ongoing process.

  11. john says:

    You’re both right (sort of) — know­ledge of dis­rup­tions are spread by word of mouth because they’re depen­dent upon chan­ging world­views.
    In the same vein see the piece on bran­ding blogs in today’s NYT

  12. pheloxi says:

    makes me won­der if blog are not word of mouth: next gene­ra­tion!
    just look at your own “english cut”!

  13. james torio says:

    Bri­lliant post Hugh, I think were most adver­ti­sing fails is that it only attempts to bring atten­tion to something, were as today rela­tionships need to be built. I am a big belie­ver in

  14. David Burn says:

    I know I’m one to get hung up on the mea­ning of words, but I digress.
    “Mar­ket dis­rup­tion” is not adver­ti­sing. It’s mar­ke­ting maybe, more likely it’s good old-fashioned pro­duct deve­lop­ment and inno­va­tion.
    Bern­bach was correct. WOM is the best adver­ti­sing. Howe­ver, I doubt the legen­dary ad man could have ima­gi­ned the lengths we’d go today to buy/manufacture that buzz. When Bern­bach said what he said, I believe he meant the best adver­ti­sing can’t be bought.

  15. Brooks Moses says:

    David, I think you’re mostly right about Bern­bach, but there’s a key dis­tinc­tion that needs to be made, and his sta­te­ment got the dis­tinc­tion back­wards.
    It is true that the best adver­ti­sing is word of mouth.
    Howe­ver, it is not always true that word of mouth is the best adver­ti­sing.
    Why? These are cate­go­ries, not sin­gle things. Some word of mouth “adver­ti­sing” is, in fact, the best pos­si­ble adver­ti­sing. A lot of it isn’t. And thus it’s false to assume that get­ting the best adver­ti­sing is simply a mat­ter of get­ting word-of-mouth — one also has to get peo­ple tal­king about your pro­duct in ways that actually help your mar­ket, and that’s a lot har­der than just get­ting them to talk.
    Where Hugh’s com­ment comes in is that dis­rup­ting the mar­ket — in a way that bene­fits the cus­to­mer, mind you! — is a thing that gets lots of word-of-mouth in ways that are very good for advertising.

  16. teeveedubya says:

    hugh is right. and inte­res­tingly, some of Bill Bernbach’s big­gest suc­ces­ses (the VW beetle, avis) were merely a reflec­tion of mar­ket dis­rup­ting ideas.

  17. Nan says:

    Bri­lliant post, you made my day!
    I more than agree, dis­rup­ting the mar­ket, is the best way to get atten­tion and it is soo refreshing for all of us, the customers!

  18. Tim Clague says:

    I remem­ber a long time ago you said something along the lines of “An idea doesn’t have to be big, it just has to change the world” and see a simi­la­rity here. This has stuck with me and it was why I star­ted 365films.com — an idea to change how we access films

  19. Christopher Coulter says:

    Oh brother, Star­bucks is trendy, big city, social and hip. That’s what made it. It doesn’t play in rural Ame­rica howe­ver. Only geeks, (or the rare over­wor­ked biz exec) care about WiFi. Mar­ke­ting is a PACKAGE, good cof­fee, good set­ting, market-bearing pri­ces, trendy peo­ple, good cus­to­mer ser­vice, uni­que items. You can FOCUS on one area, but you need all to suc­ceed. Why do peo­ple pay too much for Star­bucks cof­fee? It’s good, it’s uni­que and varied and not something you can get elsewhere. Varies by region, but a real good cup of Cof­fee from a Trucks­toppy Diner, and it’s hard to go back to the oversweet-syrupy candy cof­fee of Star­bucks, but that’s just me.
    WiFi? Limi­ted audience at best, don’t peo­ple do demo­graphics any­more? Geeesh. Man, keep this guy away from the Adver­ti­sing Bud­get.
    And why do peo­ple always cite Star­bucks? And not some manu­fac­tu­ring tech com­pany? Easy, it’s the only thing in their limi­ted nose-level view. I am tired of the Pla­net Holly­wood fast-growth Neo-Boomer Yup­piei­fed Techhead Star­bucks case-studies. Gawd. They used to say that about Krispy Kreme before all the fraud, embezz­le­ment and other trou­bles. Heh. And another thing that has me con­fu­sed, Star­bucks co-opted the ‘Cof­feeHouse spi­rit of the 60s’ to become a big cor­po­rate mind­less churn-machine. And yet all the peace, love and unders­tan­ding Tech Hip­pies still wel­come it with open arms? Figu­res. Always was a hollow move­ment, from faux save-the-world pro­tes­ting to Bee­mers and 10+ WiFi’ed gad­gets. Die Yup­pie Scum Die. :)

  20. David Burn says:

    Chris­topher,
    Do you read Romenesko’s Star­bucks Gos­sip?
    http://starbucksgossip.typepad.com/

  21. Boo­yah! Right-on.
    It all goes back to the idea dri­ving the busi­ness. Word of mouth without something rele­vant to dis­cuss is point­less. Adver­ti­sing without something worth selling is at best enter­tain­ment. (At best.)
    Too bad Star­bucks still char­ges for wifi, though. If Panera and Atlanta Bread Com­pany can offer it for free (with great cof­fee AND great pas­tries), Star­bucks ought to be able to res­pond.
    It was never about the cof­fee. :)

  22. Dig Tank says:

    Web Dig­gings — Novem­ber 12, 2005

    Buil­ding a Daily Habit of Inno­va­tion — “Think of daily inno­va­tion as the heat and pres­sure requi­red to crea­ted diamonds…

  23. Basic Juice says:

    On Blog Ethics

    Dr. V’s com­ment to me in the recent post explai­ning how I review wine spar­ked a few thoughts. The root of the mat­ter seems to be this:If a wine blog­ger accepts adver­ti­sing or press sam­ples, this my lead to the

  24. Anonymous says:

    I’m asking myself: How can it be that I’ve never ran through your site before? It’s a great one!

  25. The value of the content?

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