Will Advertising Ever Be The Same
Working under the premise that the economy, as well as rapid advances in technology, have change advertising as we knew it, do you think that it will ever be the same as advertising circa 2007?
Keep in mind the following trends:
Social Media and online advertising are taking budgets once reserved for print
Clients are not only wary, but are looking for justifiable ROI (a direct impact on sales)
Online media is currently less-expensive than all other forms of media, and measurable
Companies, such as Coca Cola, are not going to pay commissions unless agencies
prove that they were responsible for increases in sales
SEM is proving to be a very attractive model for clients
Social Media is low-cost, expanded, word-of-mouth
Thoughts?
Keep in mind the following trends:
Social Media and online advertising are taking budgets once reserved for print
Clients are not only wary, but are looking for justifiable ROI (a direct impact on sales)
Online media is currently less-expensive than all other forms of media, and measurable
Companies, such as Coca Cola, are not going to pay commissions unless agencies
prove that they were responsible for increases in sales
SEM is proving to be a very attractive model for clients
Social Media is low-cost, expanded, word-of-mouth
Thoughts?
Tags: advertising, economy, industry, marketing, of, state, the
Views: 7
Replies to This Discussion
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Permalink Reply by J.S. Gilbert on -
Advertising will no longer be the same, just as meal preperation has changed dramatically with women entering the workforce and the invention and subsequent adoption of the microwave. It's actually doubtful that most of anything being done today is being done quite the sme way that it was done in 2007.
What we do doesn't tend to change, but how we do it is a dynamic landscape that is always changing, and not necessarily for the better.
I'm not sure how you were hoping your question might be expounded upon or if this was simply a rhetorical post.
Keep in mind the following trends:
I'm an advertising professional. It's my job to keep in mind trends and to go to workshops and conventions and visit and participate in eduicational programs, read periodicals, speak with my peers and do everything else I need to be relevant and able to serve my clients.
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Permalink Reply by Jeffrey William Louis on -
Hi JS,
It was more of a discussion point...I work in branding and strategic media planning, and it seems like a lot of people in the industry don't see that there's been a fundamental change in the fabric of advertising and marketing. I was trying to drum up some discussion and see if I was if most echoed my thoughts or if it was business as usual. I am currently freelancing, so I'm 'in the dark' regarding agency SOP. I know for sure that my last agency has done nothing in the way of changing their method of pitching new business or changing the way they interact with clients.
I honestly thought that there would be a vibrant discussion. Thanks for your point of view...I appreciate it!
Jeff
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Permalink Reply by Buddy 'Friendly' Wachenheimer on
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The rain in Spain stays mainly in the plain.
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Permalink Reply by Jeffrey William Louis on
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Which is good for the cropd
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Permalink Reply by J.S. Gilbert on
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Sorry if I came off more than a little smug. I too mostly freelance, although I have plenty of exposure to agency side and lots of rfriends in big and small ad agencies. I was a contract creative director for a small ad agency up until the economy decline really hit them bad about 5 months ago.
More than anything, I see a struggle for all the component members of a project, whether considered traditional or interactive creative, to be fighting for a piece of the pie. In general it would appear that budgets for both creative and media spend are shrinking - at least from the standpoint of how much money there is to get X amount of something done. Aside from the top tier of advertisers, the spend isn't just gettig spread around more, it is actually less in terms of pure dollars.
We are seeing two or three interesting trends. One is even more collaboration by agencies, production houses and freelancers to converge on a campaign or target client and present cohesive ideas for cross media campaigns. We are also seeing the absorption of boutique agencies, specialized producers, freelancers and others by large and even medium agencies in an effort for the agencies to present more "under one roof" solutions or to make sure that regardless of the spend, they get their cut. The opther trend has simply been for agencies closely aligned with traditional advertising to expand thier new media (interactive or whatever you want to call it departments). GSP now has about a 3-1 ratio of new to old, which seems to have developed over a not much more than a 2 year period.
The other slugfest is starting to come as questions regarding the role of the advertising agency, the public relations firm or other vendor come into play with regards to social media, online video, interactive video, etc. Companies like Cisco for example which have been strong providers of revenue to lots of video rproducers and online developers are now developing more and more in-house with mandates calling for increased dependancy upon in-house resources. We saw this happen in the late 70's to mid 80's with many companies developing "uber" a/v/ departments, in-house marketing and advertising capabilities.
With stabilaztion ocurring (to some degree), it would appear that in this marketplace, the consolidation is one solution to cutting costs. Will it yield as good a product? Will it truly be cost-effective in the long run? I tend to think not. The concept of bringing these functions in-house, when they are not a primary function of the business, is a lot like saying "Why should we spend money on health insurance for our workers? Let's just build a little medical wing and staff it with some nurses or people who have had some nursing training and get rid of the insurance."
I think inevitably survival or actually viability and sustainability will come down to thos businesses that are capable of understanding the importance of relationships and will work hard to maintain quality relationships with vendors and clients, while seeking new relationships and exploring ways to increase productivity and growth within the framework of a primary business plan. Thesed buesinesses will certainly be cost concious, but they will also unbderstand that good business sense doesn't always mean using the lowest bidder or discounting valued relationships just becuase eceonimcs may allow you to. For example, it would appear for whatever reason, more and mroe of my clients seem to be hitting me with rush business. Many of my peers charge extra for this type of work, often simply becuase they can. Instead I have developed methods for creating work-flow scenarios that allow me to respond to a panicked client without having to take advantage of the situation. Many won't notice or even care, but some will and they will recognize the added value in their relationship with me.
We are also fast approaching a time when the value of that fancy European director and million dollar budgets. AS technology means we can work anywhere and do anything, we'll see less expenditure on flying people all over the world for sit-downs and more of a focus on trimming the fat, while still producing compelling messages. The move to pull advertising as opposed to push advertising will also mean major shifts in terms of how campaigns are developed and driven, with micro campaigns and highly targeted marketing solutions being made as opposed to the broad sweeping big idea. There will be lots of smaller "big ideas".
And as technology tends to drive time tables crazy, we will see ad agencies needing to become far mre resilient and able to adapt quickly to the next FaceBook or twitter in an effort to get in on the ground level of opportunity.
FREE is also the conrenrstone for the future. Consumers are now expecting more and more for free. Free downloads, free samples, free websites, free tools. Expect much more collaboration among the gaming industry, advertising and general technology firms to contiue to develop and combine methods for promotion and delivering of commercial messages, including interactive video, in-game and in-program advertising, all the ay to product placement within news programs. With miniatruization of technology, expect interactive cereal boxes and other methods for integrating dynamic messages directly into POP and products themsleves.
Okay, I think I'll come up for air now. This was all tream of conciousness for me. I am sure though that I can produce enough articles and other resources.
I'd love to discuss any or all of this further, as it feels good to be stretching the brain muscles and not whining .
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CONSUMERS. . . BUY MORE SHIT OR WE'RE ALL FUCKED!
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Permalink Reply by Jeffrey William Louis on
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And we are all consumers.
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Permalink Reply by J.S. Gilbert on
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I was trying for the vibrant discussion. Forget it, I'm going to buy some shit, because I love America.
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Permalink Reply by Jeffrey William Louis on
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Me too. I bought groceries today...
I won't be buying a car anytime soon.
J
PS Vibrant is good, but sometimes you have to tell the account types what it means.
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Permalink Reply by Jeffrey William Louis on
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You did not come off smug at all...and you went DEEP!
I would think that if I were in agency mgmt right now, I would be putting together teams of people from outside...social media, PR, event planning, etc. It's my contention that the really big boys are not going to be able to contend...smaller budgets and quicker competition may see them splitting up again...AT&T, Not AT&T. One of the occurrences that led me to this conclusion was the Twitter RFP by Current TV...the big agencies not only missed it, but then never responded.
As a media guy, I think that addressable TV, once implemented off of DTV, will play a big role in moving the revenue stream back to broadcast television. I think that most magazines are a foregone conclusion, but am not so sure about about newspapers...most of our news stems from the reporters at daily papers. Thus,it will either be "we the people" writing the stories, or some journalists at big city papers. But, then again, those are the papers that are in trouble...small town newspaper has actually grown in many areas, while not losing any ground in others.
I guess, from reading this, is that smaller and adaptable is the way to go. I interviewed a woman who runs a virtual agency...whenever she needs talent, she Skypes...globally. She has freelancers or consultants in many different countries. It was her thought that adaptability was the key.
One saving grace is that the people growing up now were weaned on Social Media...they know it front and back, up and down. There won't be a lack of SM planners, buyers, or strategists in the future although there is a need now.
What else...? Oh...Google. Google is in a great position...they may even be BIG BROTHER with all of the new apps coming out...Android, Chrome O/S, Wave, Voice...if they're recording everything, we are all in big trouble.
The Freeconomy--I wrote blog about this as well...I think it will definitely take off...it has so far...but it's a slow burn. HubSpot does a great job of giving away free training...
Adobe has Free, Google will be Free...Microsoft may have to figure something out...that's the problem with monopolies...when they are forced into a corner, there's no where for them to go. What will MS make if not software? Nothing. Whereas Google has moved beyond online into apps, TV, Phone...pictures...
As you can tell, I have a love hate w/Goog. I think that they are one of the best-run companies, let alone brands, but they're also worrisome...
Technology, as you stated, is smoking! Interestingly, as things get smaller, their use grows wider. Just like Google local search...their targeting smaller locales but expanding.
Not hip to the cereal boxes...is this info that you currently have? As you may know by now, I write for several blogs...are you working on anything that could be proclaimed as a new idea for a new age of advertising?
Have you seen the Boone Oakley website videos? If not, let me know...
I have to write a couple blogs tonight, so I better get moving. Great conversation on your part...mine, I know is scattered. Tiring day.
Talk to you soon,
Jeff
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Permalink Reply by J.S. Gilbert on
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As far as technological things like interactive cereal boxes, there's nothing I can say today...
Google Wave once it gets out there will dramatically change the communications atmosphere and probably many aspects of how collaboration is handled. The problem with so many of the creative tools is that if you're paying too much attention to how to use the tool, then it's hard to be very creative. AS you mentioned, those that have grown up with all of this in place will have no issues incorporating technology and advancements as they come along.
I tend to think that smaller and adaptable is how things will work, but not so much as a small and adaptable business, so much as wholly owned subsidiary of some megaconglomerate that has a certain degree of autonamcy.
One thing that I am working on now is a concept for the development of a business development trust, essetnailly establish a corporate structure with massive resources whose function is to bring in raw ideas and concepts, develop business plans, get funding and then nurture the business along. This company would benefit fro mthe diversity of the many businesses it may help to grow and at the same time offer a better shot for investors who would own parts of the larger company and not the component businesses. It's not a brand new idea, but creating a 2009 platform, along with corporate responsability and other modern apsects will make it somewhat unique. It also goes along with the concept of small and flexible, but with the protections and added benefits of being a larger business.
Other than that, I spend a lot of my time writing and making cheap radio and tv commercials and internet junk, as I ponder what the hell happened to the last 20 years of my life.
I also have a love/ hate thig with Google. But that is fodder for another day.
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Permalink Reply by Jeffrey William Louis on
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I signed up to be an 'early adopter' for Wave. I just received permission for Google Voice, though I only have one phone. Hopefully that will change really soon.
I feel you on the Google relationship...they are a fantastic brand, but I have had some bad experiences with them re: customer service.
I like your idea. How far away are you?
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