Podcast Summary: Nudge Episode “99.9% of Ads Are Genuinely Awful” featuring Tom Goodwin

Podcast Information

• Title: Nudge
• Host: Phill Agnew
• Episode: “99.9% of Ads Are Genuinely Awful” featuring Tom Goodwin
• Release Date: February 24, 2025
• Guest: Tom Goodwin, Marketing and Digital Transformation Expert

Introduction

In the February 24, 2025 episode of Nudge, host Phill Agnew welcomes marketing and digital transformation expert Tom Goodwin. Known as the number one voice in marketing on LinkedIn and the author of Digital Darwinism, Goodwin delves into a critical analysis of the current state of advertising. The episode promises surprising insights into the future of marketing, Tom’s candid thoughts on advertising practices, and his perspective on industry trends.

Critique of Current Advertising Practices

Tom Goodwin opens the discussion with a stark assertion, stating, “99.999% of the ads that I see are genuinely awful in almost every way” (00:00). He criticizes the lack of creativity and craftsmanship in most contemporary advertisements, describing them as "devoid of any pride" and "digitally placed ads that are very cheap" (03:46). Goodwin argues that the advertising industry has lost its way, prioritizing quick results and immediate attribution over meaningful engagement and strategic messaging.

Key Points:

• Majority of ads lack creativity and quality.
• Over-reliance on digital platforms leads to poorly crafted advertisements.
• The industry's focus on instant results undermines long-term brand building.

The Impact of the Internet on Advertising

Goodwin attributes the decline in ad quality to the transformative effects of the Internet on advertising dynamics. He explains that the proliferation of advertisers, many operating without professional agencies, has led to a surge in uncrafted and ineffective ads. The availability of automated tools like Google’s performance max (pmax) has resulted in ads being optimized mechanically rather than strategically, contributing to the overall decline in ad effectiveness (03:54).

Notable Quote:

"The vast majority of ads have never been crafted by a human. They've never really been thought about by anyone." — Tom Goodwin (03:54)

The Importance of Wastage in Marketing

Contrary to the prevalent business mindset that views waste as detrimental, Goodwin emphasizes the value of wastage in advertising. He references studies by Moreland and Beach (1992) and Cialdini, illustrating that repeated exposure to ads—often perceived as wasteful—builds familiarity and preference among consumers. Goodwin argues that allowing for some level of ad waste fosters brand recognition and long-term consumer relationships (05:08; 08:16).

Key Points:

• Wastage facilitates brand familiarity and consumer preference.
• Over-optimization for immediate ROI can harm long-term brand equity.
• Balanced ad repetition is essential for effective marketing.

Supporting Evidence:

• Moreland and Beach (1992): Demonstrated that repeated, non-interactive exposure increases perceived attractiveness and likability.
• Cialdini’s Study: Showed that higher frequency of banner ads correlates with increased product preference, even if unconsciously remembered.

Messaging vs. Signaling

Goodwin differentiates between messaging and signaling in advertising. Messaging involves explicit content such as product specifications and direct communication, while signaling encompasses the implicit messages conveyed through aesthetics, brand presence, and overall ad quality. He underscores the importance of signaling in establishing brand identity and consumer trust, advocating for ads that not only inform but also resonate on a subconscious level (17:23).

Notable Quote:

"Messaging is the kind of words. Messaging is the bullet points that show product specs. Signaling is almost everything that's unsaid but implied through the totality of the advert." — Tom Goodwin (17:23)

The Role of Aesthetics in Ads

Aesthetics play a crucial role in effective advertising, according to Goodwin. He criticizes the visually unappealing nature of many modern ads and suggests that beautiful, well-designed advertisements can significantly enhance brand perception. Goodwin believes that high-quality visuals, whether through slow-motion shots or appealing imagery, serve as powerful signals of product quality and brand integrity (18:07; 18:56).

Key Points:

• Visual appeal can compensate for other shortcomings in ads.
• High-quality aesthetics signal brand reliability and attract consumer attention.
• Both expensive and simple aesthetic enhancements can improve ad effectiveness.

Supporting Evidence:

• A 12-part 2022 study found that slow-motion ads led to higher purchase intent and increased click rates by 11.4% and 17.7%, respectively.

Repetition and Familiarity

Repetition reinforces brand messages and increases ad effectiveness. Goodwin advises marketers to embrace consistent messaging and repeated exposure rather than seeking constant novel approaches. He highlights that familiarity built through repeated ad appearances fosters consumer trust and preference, aligning with psychological principles of mere exposure (20:58).

Notable Quote:

"Make sure the ads look beautiful, make sure the ads work together. ... repetition and recognition matter more than pinpoint accuracy." — Tom Goodwin (22:31)

The State of Marketing and CMOs' Challenges

Goodwin addresses the high turnover rate of Chief Marketing Officers (CMOs), citing the average tenure of just 39 months among top US advertisers (04:50). He attributes this instability to the chaotic shift brought by digital advertising, unrealistic expectations of immediate ROI, and the pervasive belief that data-driven optimization can replace strategic creativity. Goodwin encourages marketers to resist the pressure for zero wastage and instead focus on sustainable, brand-building practices (05:08; 13:44).

Key Points:

• Short CMO tenures reflect broader industry challenges.
• Pressure for immediate results compromises long-term marketing strategies.
• Marketers need to advocate for balanced approaches that value brand development over pure optimization.

Tom Goodwin's Three Simple Truths of Advertising

Towards the episode’s conclusion, Goodwin shares three fundamental principles every marketer should embrace:

1. Repetition is Effective: Consistently repeating a message across various platforms builds recognition and trust.

2. Aesthetics as Signals: Investing in the visual and auditory quality of ads can enhance brand perception and consumer appeal.

3. Prioritize Messaging over Micro-Targeting: Focus on clear, compelling messages rather than obsessing over precise targeting, which is often unreliable.

Notable Quote:

"Great marketing isn't about chasing the latest trend. It's about consistency, repetition, wastage and at its heart, understanding human behaviour." — Tom Goodwin (25:16)

Conclusion

Tom Goodwin paints a candid and somewhat bleak picture of the current advertising landscape, highlighting significant flaws exacerbated by digital transformation. However, he offers constructive solutions centered on traditional marketing principles adapted to the modern context. Goodwin advocates for a return to foundational practices—consistent messaging, aesthetic excellence, and strategic repetition—while navigating the complexities introduced by the digital age.

Final Takeaway:

• Show Your Ad Enough Times: Persistent exposure leads to increased likability and brand recognition, undermining the necessity for hyper-targeted and constantly changing ad strategies.

Notable Quote:

"Take a step back, chill out, realize that everything that we knew in 1995 is completely true today day, and we just need to take that wonderful playbook that made our jobs delightful to do and just sort of tweak it a little bit here and there." — Tom Goodwin (26:57)

Notable Quotes with Timestamps

• Tom Goodwin (00:00): “99.999% of the ads that I see are genuinely awful in almost every way.”

• Phill Agnew (02:14): Introduction of Tom Goodwin and his credentials.

• Tom Goodwin (02:27): “I'm not really in the industry... I can ask questions that are quite often quite stupid but are accidentally quite helpful.”

• Tom Goodwin (03:54): “The vast majority of ads have never been crafted by a human.”

• Tom Goodwin (06:14): Critique of Elon Musk’s understanding of advertising.

• Tom Goodwin (12:08): Discussion on marketers’ envy and the wrong playbook.

• Tom Goodwin (14:03): Observations on the chaotic media environment and its impact on attention.

• Tom Goodwin (17:23): Differentiates between messaging and signaling.

• Tom Goodwin (18:11): “Aesthetics play a much greater role in life than we realize.”

• Tom Goodwin (20:58): Emphasizes repetition and consistency in messaging.

• Tom Goodwin (22:54): Critiques the myth of precise targeting in digital advertising.

• Tom Goodwin (25:16): Summarizes the core principles of effective marketing.

• Tom Goodwin (26:57): Advocates for returning to foundational marketing playbooks.

Additional Resources

For listeners interested in exploring more of Tom Goodwin’s insights:

• Follow on LinkedIn: Tom Goodwin on LinkedIn
• Twitter Handle: omfgoodwin on X
• Book: Digital Darwinism by Tom Goodwin

Bonus Episode: A special bonus episode discusses Tom Goodwin’s thoughts on using AI in advertising. To access this episode, listeners can follow the link in the show notes and subscribe via email.

Conclusion

This episode of Nudge provides a critical examination of the advertising industry's current state, highlighting significant inefficiencies and missteps driven by digital transformation. Tom Goodwin offers a refreshing perspective that calls for a balance between traditional marketing principles and modern technological advancements. Marketers are encouraged to focus on consistent messaging, aesthetic quality, and the strategic use of repetition to build enduring brand relationships.