I have a chart which demonstrates the need to move from "message neutral" (advertising) to "channel neutral" (communications) to "campaign neutral" (conversation) to "solution neutral" (innovation)
In the May 1st edition of Ad Age, there was an interesting cover story (R&D vs. ads in battle for bucks) which focused on this very topic and whilst, I think it was a little too sensationalist i.e. "...the share of money spent on R&D increasing relative to the amount spent on advertising" which implies some kind of causal relationship, I do agree with the premise.
Here are the facts:
- 50 years ago: Advertising:R&D ratio was 3:1
- By 1970, this had dropped to below $2
- By 1995 it was down to $1.52
- Today, $1.34 is spent on advertising for every $1 spent on R&D
The article continues with a comparison of 18 Leading National Advertisers who disclosed both their worldwide ad and R&D spending and shows how ad spending as a % of revenue dropped 1.35 % points from 1995 to 2005, whereas R&D spending as a % of revenue increased by .32 % points from 1995 to 2005.
Here's my take. Think about some of the most prominent launches or success stories of recent times: The Motorola Razr; The Apple iPod; Toyota's Prius. They all have their roots in significant R&D innovation; they also have a strong marketing and advertising relationship.
The insight/implication is simple: R&D and advertising (let's call it communications) are - or perhaps should be - inextricably linked and the combination of both makes for an incredibly strong 1-2 punch.
Arguably R&D/innovation is a precursor to advertising (with the former giving the latter something actually newsworthy to talk about), however in reality the two are in fact part of a fluid circle - a closed loop - and continuous cycle.
In an age where R&D and advertising are quickly becoming synonymous with oil and water, I believe "new marketing" can play a major role in terms of not only bridging this gap, but indeed forging stronger bonds and interrelated dyamics or synergy points between the two disciplines.
