Tag Archives: Search

iMedia Brand Summit 2010 Closing Keynote Talk.

The brand marketers who attended iMedia  2010 were kind enough to vote this the best presentation of the summit. Where I ran videos in the actual presentation you will find pages with the links to the relevant videos on YouTube and, if Steve J hasn’t changed his mind and taken down the iPhone OS 4 / iAd streaming presentation, at Apple.

My thanks once again to:

Ken Mandel of Yahoo and Agatha Yap of McDonalds who recommended me to Ad Tech / iMedia ; Joe at ComScore who provided data; Tom and Jerry (seriously)of MobileNow, the iPhone, iPad & Android app developers in Shanghai for data, insights and magic; Benjamin and Christoph of Wildfire Asia WOM in Singapore and Shanghai for insights, POV and reference leads; Eddie Chau of Brandtology for the topical case study, other great charts and your vision; Josh Sklar of Heresy in Austin, Texas for your insights, the reference links and 15 years of partnership in digital.

It’s all about the Social Graph in action and you guys helped prove it through your excellent input. Again, Thank you all.

There’s a lot happening out there!

View more presentations from Innovize.

“You have 5 mins To Fix The Ad Agency Business Starting… NOW!”

Maybe they didn't notice 'cos it didn't tick...

Last week while I was posting  that ad agencies should innovate – perhaps even embrace crowdsourcing – something strange was happening at the Hilton Union Square, San Francisco. I wish I’d been there. Here’s what I’ve found out.

The AAAA (American Association Of Advertising Agencies) combined for the very first time their Leadership Conference (ad agency types) and their Media Conference (yep, media agency types) into one conference: “Transformations 2010”. Flailing to be seen as up to date, they called this “the mash-up (sic) of the association’s Media and Leadership Conferences”.

Are you struck by some puzzling questions? I was.

Why wasn’t this always one event? Isn’t there just one purpose for all those people – to help build their clients’ business through marketing communications? Isn’t this symptomatic of why marketing communications, and the ad agency business in particular, are in turmoil?

To the A’s credit, they did invite some “digital” speakers. Carol Bartz and Arianna Huffington. Google, the giant of online advertising wasn’t there. Nor was Facebook, the next online ad giant. The mightiest of the search and social media players. Either of them is more important to the ad business now and for the future than Yahoo and Huffington Post combined. Maybe they couldn’t make it.

The 4As also didn’t invite BootB or IdeaBounty which I linked to in last week’s post. No surprise.

“The goal of the conference is gathering the entire media and marketing ecosystem into one room and onto the same page,” said 4A’s President and CEO Nancy Hill. “In a world where everything is digital and global, the conversations about the transformation of the business needs (sic) to be held together, so that we can cooperatively find solutions to the challenges ahead.”

For those of you without a Babel Fish in your ear that’s Adfolkian for “The ad agency business is screwed. Fine, we admit we don’t “get it” and that we really are all in the same business. Now, will you please explain where the life rafts are”.

The 4As also boasted of “18 women speakers, roughly one out of three, [which] marks the highest percentage and number of women in the history of 4A’s events”. Wow! In an industry where the proportion of women is closer to double that and those 18 speakers included outsiders Ms. Bartz and Ms. Huffington.

It sounds like the real highlights of the conference were the “seven guest, five-minute sessions from the winners of the 4A’s Transformers Contest, which asked users to submit their own ideas and concepts for revolutionizing the advertising industry”. That’s right: “You have 5 minutes to explain how to fix the massively screwed up Ad Industry. Starting…. NOW!”

Here’s the best I’ve seen or heard. Sean Boyle, Global Planning Director of JWT taking 2 deserved minutes longer than the 5 allowed for his witty, wise presentation: “The Stop/Start 10 Commandments”. It’s a hand-held wobbly vid, but worth it.

There’s a .pdf of Sean’s presentation here.

The 4As also included in the seven winners, to their credit, the uber-cranky George Parker of AdScam – think gonzo without Hunter T -who described last year’s 4As Leadership Conference as a “Giant Wank Fest!” Google him. That’s a  comment well to the “G” end of the Parker ranting-scale.

Here’s my own short rant:

I’ve built and run some ad agencies and I’ve co-founded and run a digital heavy hitter. I’ve run some media agencies, a network of CRM companies and two networks of “activation” companies. My conclusion from those nearly 360 degrees of experience is the only thing more mindless and unprofessional than scam ads is the silo-ed, paranoid, “We’re better than you are. Nyah nyah nyah nyaaah nyah” way those 5 disciplines have failed to pull together to build their clients’ business. Now, get on with it!

There is light, though.

Here’s how the 4As recognizes the mess when promoting their “highly successful and in-demand 4A’s workshop “Agency 2.5: How Agencies Are Transforming for the Future” [which] looks at the traditional agency model and discusses what to relinquish, what to rework, and what to reinvent”.

“It’s time for marketing communications firms to address the realities facing our industry:

  • There’s less demand for what agencies traditionally have to sell.

  • Clients need more help in online marketing, particularly social media, but agencies aren’t set up to provide it.

  • Agencies are spending their energies above-the-line while clients are spending their budgets below-the-line.
  • Agencies are stuck in a structure that churns out “advertising” ideas instead of “business-building” ideas.
  • Clients are hammering agencies on price and speed for work they perceive as a commodity.

  • There’s a strong movement toward accountability that agencies aren’t prepared to address”.

Now if only there was hint of this recognition, and of this commitment to doing something about it, among the ad industry in Asia.

5 Ways The Ad Industry Stumbled & 5 Ways To Rebuild It, Only Better.

Yes, you got burned. Now come back stronger!

Reading the trade press one would think the ad industry has suddenly and unexpectedly fallen on hard times.

It hasn’t. The current shake-out has been a long time coming.

Here are 5 industry features which combined to cause the collapse:

1. Miguided creativity. Many Creative Directors and their ad agencies shifted their focus and that of their staff, away from their real purpose.

They used to produce marketing communications to engage consumers, build brands and help drive sales for their clients. Now one would be forgiven for thinking that they prefer making ads for each other. Scam ads and festivals of self-congratulation have put this into sharp focus, making marketers question the professionalism and value of the industry.

Why did it happen? Ego, bad HR practices, poor leadership and forgetting the essential role advertising is supposed to fill in the marketing mix.

2. Laziness, Fear, Maybe Arrogance. Continuing to use Transmission Model thinking. ‘Brand advertising’, like 30 second TVCs. The industry failed to embrace the digital media era and become truly consumer/user centric; listening to them and letting them search for and find marketers doing the right things in the right places. Failing to be idea-focused and media-agnostic. Too many ad types tried to stick to what they were comfy with. Digital, direct, sponsorship, PR and events remained 2nd class colleagues in silos; afterthoughts to be briefed only once the Big (all too often TV) idea had been “cracked”, or were left out of the picture altogether;

3. Failing to add & track value. Trying to perpetuate an archaic revenue and overall business model with little or no value-based or performance-linked component in their remuneration. An approach where the value added is not tracked, recognized and as a result often not rewarded either.

4. Failure to invest. Take a good look at the holding company model. While there have been some benefits of size, have they improved what the ad agencies within them actually do? Not really. In fact, the holding companies have become distractions for agency management and hindrances to progressing the craft. This simply because they siphon profits from front-line companies which need the money to retain and train the best people, conduct research and pilot new techniques to add value to clients’ business (see 3. above);

5. Strategic blindness. Earlier, ad agency groups un-bundled media planning and buying from the development and creation of advertising which everyone seemed to believe was their main business. That divorced media strategy from brand communication strategy and handed over the data & analytics too.

More recently the industry failed to recognize the impact of online advertising and social media. Ad industry leaders are now under immense pressure.  Digital is for them a poorly understood rod with which they are now being beaten. Added to that, marketers made major budget cuts during the downturn, reviewed their approach to marketing and are demanding real results (see Value) whilst Procurement has also become a permanent stakeholder at the table (see earlier post Creative Services & The Vicious Cycle of Procurement). All rather challenging for the old school mentality.

Here’s hope for a brighter future.

Now marketer budgets are slowly rising again. The more sophisticated ones pulled back very little anyway, knowing one cannot cost-cut one’s way to market leadership. The problem for most ad companies now will be how to gain, retain and make money on a share of that re-instated spending because the business has changed substantially.

Here are 5 ways the ad industry can make real changes to evolve into a better professional services sector.

1. Focus on adding, and invest in tracking, the value you create. Ask “how will this improve our client’s business results and how will we track how well it does that?” If you can’t prove a clear connection to improved desirability, higher perceived value or better service perceptions, or to lower costs of achieving the same or better sales and branding scores for your client, think again.

2. Return to deeply understanding the target prospects. If you know them deeply – especially their motivations, communication profiles and online behaviour – and better than your clients, you will be able to lead your clients professionally producing work which truly adds value and justifies a decent margin.

3. Charge, and get paid, for Ideas. Marketers need to pay you on the basis of the ideas you create and implement and the impact of those on their marketing KPIs. Paying you on the basis of the media spend behind your ideas is lazy and unprofessional on both sides. Yes, it has been a long standing tradition that clients get free ideas, but as both sides must finally have noticed by now, the world has changed and the old commission model is broken.

4. Embrace Procurement. Procurement is here to stay in contract negotiations, in getting paid each month and in annual or semi-annual performance reviews. Learn from it and make the most of it. Clients want results, so negotiate with them a data-based way to track your performance on appropriate KPIs and make sure they commit to providing the data needed from their side to do this. Learn, and run your own company with the same degree of attention to supplier costs, results, transparency and fat trimming or frankly, you are doomed.

5. Have fewer, better people who are better paid, better equipped and better led. Yes, there is such a thing as critical mass, but you need to be pragmatic and deal with the realities of your business. Size is not everything. Clients want leadership and service from experienced, quality people and will pay for the value they add. If you don’t have sufficiently skilled, motivated, talented people to deliver on that, you will not succeed, let alone prosper.

Get it right and you will keep the business you have, earn bonuses and better payment terms on it, win yet more business and have future clients and talented potential staff banging on your door.

OK, you may be feeling like you’re sitting in a pile of ashes. Rise from them as something a whole lot better. Good luck.