Ken Kerry said television won’t be going away because of social media platforms, such as Facebook and Twitter.
He said that when companies build a business on the platforms, they find it difficult to scale, and thus turn to television, which can mean viewers ranging from the hundreds of thousands to the millions.
“Television is a great way to scale. There are many more eyeballs. Television will always have a place.”
Kerry said he keeps a close eye on advertising trends. Here are some of his observations:
• An emerging phenomenon is connecting with consumers through voice technology, including Alexa and Google Home. For example, how can a milk manufacturer get Alexa, for instance, to order its brand of dairy products?
“That’s where the advertisers have to figure out how to sell to you.”
• Manufacturers’ boards of directors are discussing how to deal with retail and Amazon, both of which demand never-ending price reductions, Kerry said.
A possible alternative is selling directly to consumers, he said. A key is that the manufacturer keeps the consumer information, not Amazon or the retailer.
He pointed to Unilever (NYSE: UL), which paid $1 billion in 2016 to acquire Dollar Shave Club of Santa Monica.
While Shave Club was unprofitable, it had several million customers that Unilever can directly sell its other products to, Kerry said.
“With the direct-response model, I’m going directly to the consumer, and they’re buying directly from me. Direct response is solving the problems of these businesses” being squeezed by Amazon or retail stores.
• His firm often dives into statistics. For example, his book cites a survey by Microsoft Corp. indicating “people generally lose attention after eight seconds,” and a Deloitte LLC survey that found 81% of Americans spend time looking at their phones while dining in restaurants.
An advertiser on Facebook has “under three seconds” to get the attention of a consumer, he said. A TV ad can take up 15 seconds to 60 seconds.
“That process of getting somebody’s attention, recognizing the problem and introducing my customer’s product to solve the problem and why it’s better than the alternative, there’s a unique selling proposition.
• “If you cannot demonstrate what your product or service does, it’s a tough uphill battle.”
• Companies should closely monitor reviews.
“People make decisions based on reviews. You have to have social proof to validate what you do.”
For example, Script to Screen’s website features many laudatory comments from customers.
“We built our multimillion-dollar business on creating that message.”
— Peter J. Brennan
