"Advertising Isn't a Science. It's Persuasion. and Persuasion is an Art..." (that can be enhanced by science).
Legendary Ad man, Bill Bernbach, was on to something profound when he coined this phrase. Over the last fifty years, advanced technology has been developed to improve the efficacy of advertising, and this explains why tech companies have led the charge of innovation in advertising and become the largest ad agencies themselves.
But using relatively cold tech to improve targeting, timing, and delivery of ad messages has left the artistic component and true persuasive power of advertising a little short. So where is the art, the physical delivery advancements, and where are the next innovations in advertising that can bring meaningful breakthroughs for generations that are becoming immune to traditional display and digital ad formats?
The Evolution of Advertising: From Search Engines and Digital Ad Platforms to Sensory Packaging
Over the past five decades, advertising has undergone seismic shifts—transformations that not only shaped industries but also fundamentally altered how businesses connect with audiences. Among the most impactful innovations, a few stand out for creating entirely new markets, including one that’s redefining advertising in the hands of consumers today.
The Google Revolution: Turning Search Into a Marketplace
In 2000, Google launched AdWords, a platform that forever changed how businesses approached advertising. By turning search terms into an auction-based marketplace, Google empowered advertisers to bid for consumer attention with unparalleled precision. This innovation didn’t just create a new revenue stream—it established Google as the largest advertising company in the world.
What made this so revolutionary? For one, it allowed advertisers to target intent. Traditional advertising could broadcast a message widely, but search advertising connected businesses with consumers already searching for their products or services. This precision eliminated waste and maximized ROI. Furthermore, AdWords’ pay-per-click model ensured advertisers paid only when their ads worked, shifting the focus from impressions to actionable results.
The impact was immediate and profound. Google’s advertising revenue grew from $70 million in 2001 to over $224 billion in 2022. Beyond the numbers, Google democratized advertising, giving small businesses the tools to compete with corporate giants. It also laid the groundwork for the data-driven, performance-oriented advertising models that dominate today.
Facebook and the Rise of Social Media Advertising
While Google targeted intent, Facebook reshaped advertising by targeting identity. In 2007, Facebook introduced its Ads platform, allowing brands to leverage its wealth of user data—from interests and activities to social connections—to deliver hyper-targeted messages.
This approach created an entirely new way for brands to engage. Instead of waiting for consumers to search, Facebook enabled advertisers to reach audiences in their digital “homes,” building brand awareness through social proof, personalized content, and dynamic formats like video ads and sponsored posts.
The results? By 2023, Facebook (under parent company Meta) generated over $113 billion in advertising revenue annually, becoming an indispensable channel for both global brands and small businesses. Social media advertising not only grew an entire industry but also turned passive scrolling into one of the most lucrative ad ecosystems ever.
Amazon and the Evolution of E-Commerce Advertising
Amazon’s advertising business, often less discussed but equally transformative, turned e-commerce into an advertising platform. With its Sponsored Products feature, launched in 2012, Amazon allowed sellers to promote products directly within search results and product pages. Unlike Google, Amazon targeted consumers at the point of purchase, delivering ads with unparalleled conversion potential.
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By 2023, Amazon’s advertising revenue surpassed $40 billion, cementing its position as a dominant player in the ad space. Its success demonstrated the power of combining transactional intent with advertising, creating a model where ads directly drove sales.
The Next Frontier: Sensory Advertising with Bored & Thirsty
Building on these revolutionary models, Bored & Thirsty has introduced an entirely new dimension to advertising by transforming consumer packaged goods (CPG) into immersive, interactive ad platforms. At its core, Bored & Thirsty’s innovation turns product packaging into “handheld billboards” that engage consumers on all five senses:
Through augmented reality (AR) and QR codes, Bored & Thirsty creates dynamic guest experiences that entertain, inform, and inspire, all while driving online transactions. Unlike traditional ads that interrupt, these are ads people willingly purchase and carry with them.
A New Era of Collaborative Advertising
Bored & Thirsty’s business model doesn’t just break through overstimulated audiences like Gen Z, Millennials, and Gen Alpha—it creates entirely new opportunities for collaboration. By offering co-branded packaging, the company enables brands to engage consumers both on-premise and in retail locations, amplifying their reach and impact.
Imagine a hotel chain offering custom-designed water cans featuring local attractions, or a sports venue promoting exclusive fan experiences through QR codes on beverages. These partnerships not only elevate brand visibility but also create meaningful, memorable touchpoints with consumers.
Impact on the Advertising Industry
The implications of Bored & Thirsty’s model are vast:
As we reflect on the history of advertising innovation, from Google’s search auctions to Bored & Thirsty’s sensory packaging, one thing is clear: the future of advertising belongs to those who can turn everyday interactions into extraordinary experiences.
Completely agree! Kurt Lohse While technology shapes the medium, true impact still comes from creativity and persuasion, an art that never fades. ??
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1 个月Kurt, ??Appreciate this.