Society of digital agencies report 2013 the quantified society
Tony Quin Intro With over 65,000 readers in 2012, The SoDA Report“ Six years after 13 has become one of the most read publications in thedigital agency leaders digital marketing world. But this is only one expressiongot together over dinner of the remarkable community of digital pioneers,in Miami, SoDA has creatives and executives that makes up SoDA. Withgrown into a global 70 member agencies in 22 countries on 5 continents,organization with SoDA has become the leading voice of the digital agencymembers from New community, representing the top tier of digital agenciesYork to New Zealand. ” and the most sought after production companies in the world. As you will see as you explore the pages of this new edition of The SoDA Report, our members freely share their latest thinking on everything from igniting an innovation-ready mindset to the importance of user- centric design to humorous suggestions for horrible new buzzwords that we pray never see the light of day. That’s because sharing is the cornerstone of how SoDA works. We share with each other and we share with the world. Our Peer Collaboration Groups, for example, bring together over six hundred members across 16 disciplines in the search for best practices and new ideas. Regular roundtables and webinars showcase critical thought- leaders to our membership and beyond. And this year our “SoDA Presents” panel program will bring together the cream of our industry at major conferences across Europe, North America and Latin America. Six years after 13 digital agency leaders got together over dinner in Miami, SoDA has grown into a global
organization with members from New York to NewZealand, enabling us more than ever to accomplish ourmission to advance our industry through Best Practices,Education, and Advocacy.I hope that you find this latest volume of The SoDAReport insightful and valuable, and I invite you to findout more about our programs, resources and membersat www.sodaspeaks.com.Best Wishes,Tony QuinChairman of the Board, SoDACEO, IQ Agency
Angèle Beausoleil Foreward“We see the world, not as How agencies, production companies and brandsit is, but as we are” perceive their value to their respective customers varies – Talmud greatly. How one generation perceives value differs from the next. Campaigns targeting one consumer segment are not necessarily perceived the same way by another segment. Facing these multiplying realities, how can we build a better awareness of people’s perceptions of our services, products and organizations? This year’s first edition of The SoDA Report reveals new perspectives, fresh ideas and real concepts of how organizations are balancing the art and science of perception to succeed in these fast-paced times. From blowing up what you learned about data from your not-so-favorite math teacher, to exploring how forward-thinking companies are laying the groundwork for a virtuous cycle of innovation, to integrating the best of technology development processes with quick marketing smarts, we suggest how you can change your company from risk averse to courageous, creative, authentic and agile. Future shifts in marketing are discussed by top executives of global brands, tech start-ups, agencies and the leadership of top trade publications. Among other things, they highlight the importance of humanizing data, creating credible content, advocating for user- centric design, transforming business models, tribe building and simplicity.
Our writers and editors ponder a broad range ofprovocative questions. Are we responsive to responsivedesign? If focusing on the creation of mobile optimizedcontent is akin to solving a problem from 2007, whatproblems should we be focused on now? What isthe “next” Facebook? Are we living in a “QuantifiedSociety”? How can we become the Master of Design inour organizations. And, does irreverent marketing leadto effective consumption?We propose the use of Improv to cut throughperceptions and expose the real people you are hiring,and that whole-brained folks are truly the next killerapp. We suggest you pay attention to idea thieves, solvereal versus perceived problems and focus on becomingexceptional – which is what innovation is about.So, how can you increase your awareness of both yourown perceptions and the perceptions of others? Start byreading this report. Enjoy.Angèle BeausoleilEditor-in-Chief
The SoDA ReportTeam & PartnersContent DevelopmentAngèle BeausoleilEditor-in-Chief of The SoDA Report,Founder & Chief Innovation Officer of Agent Innovateur Inc.Angèle Beausoleil has spent the last two decadesworking with digital agencies, technology companiesand consumer brands on identifying market trends,leading research and development projects throughinnovation labs and crafting strategic plans. Today,she balances her graduate studies (MA/PhD in AppliedInnovation) activities, with teaching Thinking Strategiesat UBC’s d.studio, and a strategic marketing andinvention consulting practice. Angele is also the Editor-in-Chief for The SoDA Report and is an advisory boardmember for the Merging+Media Association, VancouverInternational Film Festival, Kibooco (kids edutainmentstart-up) and the Digital Strategy Committee for theUniversity of British Columbia (UBC). Angèle lives inVancouver with her husband and son.Chris BuettnerManaging Editor of The SoDA Report,SoDA Executive DirectorAfter a career on the digital agency and publisher sidethat spanned 15+ years, Chris Buettner now serves asManaging Editor of The SoDA Report. He is also theExecutive Director of SoDA where he is charged withdeveloping and executing the organization’s overallstrategic vision and growth plan. And with roots in
journalism, education and the international non-profitworld, the transition to lead SoDA has been a welcomeopportunity to combine many of his talents andpassions. After living in Brazil and Colombia for years,Chris is also fluent in Spanish and Portuguese and is anenthusiastic supporter of SoDA’s initiatives to increaseits footprint in Latin America and around the world.Chris lives in Atlanta with his wife and two daughters.Editorial TeamSean MacPhedranIndustry Insider,Group Planning Director, FuelSean is Group Planning Director at Fuel (based inOttawa, Canada), where he currently works withclients including McDonald’s Europe, Nokia, Matteland Lucasfilm. He specializes in youth marketing,entertainment & game development, and theincorporation of pirates into advertising campaignsfor brands ranging from Jeep to Family Guy. Outsideof Fuel, he is a co-founder of the Ottawa InternationalGame Conference, managed the category-freeTomorrow Awards and spent a good deal of time in theMojave Desert launching people into space at the XPRIZE Foundation. They all came back alive.Craig MenziesAdvocacy,Head of Research and User Experience, DeependCraig is currently the Head of Research and UserExperience at Deepend, a digital and creative agencyheadquartered in Sydney, Australia. Craig is a formerForrester customer experience analyst, and has also heldpositions with iCrossing UK and Vodafone Australia.
Zachary ParadisPeople Power,Director of Innovation Strategy, SapientNitroZachary Jean Paradis is an innovation strategist,professor and author obsessed with transforming livesthrough customer experience. He works at SapientNitro,teaches at the Institute of Design and lives in Chicago.Zachary works with companies to become successfulinnovators by utilizing “experience thinking” as astrategic asset manifested in better offerings, flexibleprocess, and open culture. He works with start-upsand Fortune 1000 companies as diverse as ChryslerAuto Group to Target, Hyatt Hotels to John Deere,M&S to McLaren, and SAP to Yahoo!, evolving serviceand product experiences across digital and physicalchannels. Zachary recently relocated to Chicago fromSapientNitro’s London office.Mark PollardModern Marketer,VP Brand Strategy, Big SpaceshipMark is a brand planner who grew up digital. He builthis first website in 1997 then published the first full-color hip hop magazine in the Southern Hemisphere,while working in dotcoms, digital agencies andadvertising agencies. He is featured in the AdNews Top40 under 40, and won a Gold Account Planning Group(APG) award for his McDonald’s ‘Name It Burger’strategy. A NSW Government initiative listed him as oneof Sydney’s Top 100 Creative Catalysts. Mark is VP ofBrand Strategy at Big Spaceship in New York City.Simon SteinhardtTech Talk,Associate Creative Director, Editorial, JESS3Simon Steinhardt is the Associate Creative Directorof Editorial at JESS3 in Los Angeles. He is co-authorof the forthcoming book Hidden in Plain Sight: How
to Create Extraordinary Products for Tomorrow’sCustomers (HarperBusiness), set for release on April16. Previously, he was managing editor of Swindlemagazine, and has written and edited extensively on artand culture, including contributions to The History ofAmerican Graffiti and Supply and Demand: The Art ofShepard Fairey.Philip RackinResearch Insights,Director of Strategy, MCDAs Director of Strategy at MCD Partners, PhilipRackin helps companies such as Samsung, E*TRADE,Discover Financial, and Genworth identify and developopportunities to grow their businesses with emergingtechnologies. Over the past 15 years, he’s developeddozens of marketing programs, and digital productsfor consumer and B2B clients, including Comcast,Consumer Reports, The Port Authority of NY and NJ,Computer Associates, NARS Cosmetics, Johnnie WalkerScotch Whisky, and the University of PennsylvaniaSchool of Design.Kate RichlingSoDA Showcases,VP of Marketing, PhenomblueAs Phenomblue’s Vice President of Marketing, KateRichling oversees the agency’s marketing and socialmedia outreach, as well as its inbound marketing efforts.Previously, Richling worked in public relations, creatingand executing strategies for a wide variety of brands andnon-profit organizations.
PartnersResearch Partner Content/ProductionEconsultancy SoDAwww.econsultancy.com www.sodaspeaks.com Organizational SponsorCover Design AdobeStruck www.adobe.comwww.struck.comTablet Edition/ProdutionUniversal Mind The SoDA Reportwww.universalmind.com Production Team Natalie Smith, Head of Production Todd Harrison, Designer Courtney Hurt, Production DesignerInfographics PartnerPhenombluewww.phenomblue.com
Digital Marketing Outlook Key Survey Findings Respondent Overview Marketers Self-Assess their Digital SavvyClient Investments in Agencies Trending Upward The SoDA Report 2013
The SoDAReport Section 1 : Digital Marketing Outlook SoDA’s Digital Outlook Marketing (DMO) Survey results are in. The findings provide evidence that both digital agencies and full-service agencies with robust digital capabilities are taking an increasingly prominent seat at the table with client organizations. In fact, many not only have a seat, but also a desk and a few family photos. More than 1 in 5 of our agency respondents said they now have agency employees embedded asChris Buettner specialized resources at client offices as part of theirSoDA Executive Director service offering, highlighting a significant shift in client-and Managing Editor of agency engagement models.The SoDA Report Clients, for their part, are getting savvier as well. WhileAfter a career on the digital much of this digital acumen is home-grown within clientagency and publisher side organizations, brands are also receiving help from theirthat spanned 15+ years, agency and production company partners. Nearly oneChris Buettner now serves third of agency respondents are providing educationas Managing Editor of and training services to those clients who haveThe SoDA Report. He is developed internal teams to handle digital productionalso the Executive Director and maintenance.of Operations at SoDA So, do digital agencies have a dim future given thiswhere he is charged with apparent shift toward “in-sourcing” on the clientdeveloping and executing side? Quite the contrary. Forward-thinking digitalthe organization’s overall companies are finding that the best route to growth is tostrategic vision and growth make things…to be able to create innovative, effectiveplan. And with roots in experiences for both consumers and brands. And thisjournalism, education and year’s DMO Survey results underscore that brandsthe international non- are increasingly looking to digital agencies to do justprofit world, the transition that. We believe the trend toward clients innovatingto lead SoDA has been “out-of-house” and maintaining their existinga welcome opportunity digital experiences in-house will only become moreto combine many of his pronounced this year and into 2014.talents and passions.After living in Brazil and To support this shift, leading agencies and productionColombia for years, Chris companies are working to create a virtuous cycle of
is also fluent in Spanish innovation and IP development at their companiesand Portuguese and is an through the creation of innovation labs and productenthusiastic supporter incubators. A whopping 40% of agency respondentsof SoDA’s initiatives to have launched product incubators, with the most salientincrease its footprint in benefits being happier, more engaged staff and newLatin America and around business success. These are just a few of the trendsthe world. emerging from this year’s DMO study. Conducted by Econsultancy, SoDA’s 2013 Digital Outlook Marketing Survey had 814 respondents, up 25% from SoDA’s 2012 study. Marketers represented approximately one-third of all respondents with a fairly even split between companies who primarily market products (33%), services (31%) and a mix of products and services (36%). Over 84% of respondents were key decision makers and influencers (CMOs, senior executives, VPs and directors) with annual marketing budgets ranging from US$5M to over US$100M and whose key markets are North America (50%), Europe (22%) and APAC (12%). This year saw a growing multinational cross-section of respondents, with 12% indicating that no single continent accounts for a majority of their business revenue. ABOUT ECONSULTANCY Econsultancy is a community where the world’s digital marketing and ecommerce professionals meet to sharpen their strategy, source suppliers, get quick answers, compare notes, help each other out and discover how to do everything better online. Founded in 1999, Econsultancy has grown to become the leading source of independent advice and insight on digital marketing and ecommerce. Econsultancy’s reports, events, online resources and training programs help its 200,000+ members make better decisions, build business cases, find the best suppliers, look smart in meetings and accelerate their careers. Econsultancy is proud to be SoDA’s research partner on this publication for the second consecutive year. For more information, go to http://econsultancy.com/
The SoDAReport Section 1 : Digital Marketing Outlook Respondent Overview Organization TypeQ. Which of the Organization Type %following bestdescribes the Consumer brand (B2C) marketing 13%organization you Corporate brand (B2B) marketing 15%work for? Agency 35%Agency respondents Digital production studio 7%were evenly splitbetween digital agencies Vendor/service/independent consultant 10%and full service agencies serving the digital marketing industrywith digital capabilities. Other digital marketing professional 20%See the Related ResearchInsights within IndustryInsider for additionalanalysis on how thesetwo sets of agencyrespondents differ andagree on key industryissues.
Respondent Overview Consumer Marketers by CategoryQ. Which of thefollowing bestdescribes yourcategory ofconsumer brand 12%marketing?CPG marketers 48%representedapproximately 50% 31%of the 2013 sample ofconsumer marketers. 9% Consumer Packaged Goods Services Other OEM
Respondent Overview Job TitleQ. Which of the Title %following best C-level executive (e.g., CMO) 26%describes your title? Vice president (including SVP & EVP) of marketing 13% Vice president (including SVP & EVP) of channelOver 84% of (e.g., social media, mobile, e-mail) 4%respondents were key Vice president (including SVP & EVP) of technology 2%decision makers and Director/manager of market research 11% 10%influencers (CMOs,senior executives, VPs Customer segment owner or customer program manager 24% 10%and directors. Director/manager of marketing services or operations 13% 23% Other (please specify) 12%
Global Business Reach By ContinentQ. From whichregion do themajority of yourbusiness revenuescome? 11%North American 2% 12%respondents represented50% of the sample (down 50%from approximately60% in the 2012 study),with Europe and Asia 2 2%making up an additional 3%third. Just over 1 in 10respondents (11%) hailedfrom multinationalswith a diversifiedrevenue stream acrosscontinents, up from 8%in last year’s study. North America Europe APAC Less than half of our revenues come fom any one continent South America Africa
TheSoDAReport Section 1 : Digital Marketing Outlook Key Insight: Digital acumen on the client side is spiking. Marketers Self-Assess their Digital Savvy Q. How would you describe the digital marketing sophistication of your organization? (posed to 5% 1% client-side respondents) % 12 22 Fifty-four percent of client % respondents describe their organizations as “sophisticated” or 26% “very sophisticated” when it comes to digital marketing, an assertion that 34 a large cross-section of agency and % production company respondents support. When agencies and production companies were asked how they’re Very Sophisticated seeing their clients evolve, the increasing digital savvy of client- Somewhat Sophisticated side organizations – as suggested by About Average clients’ own self-assessments noted Somewhat Unsophisticated in the pie chart above – became even Very Unsophisticated more pronounced. While the pool of client-side respondents to SoDA’s No Opinion
survey may be more sophisticated than the generalpopulation of brand marketers, we believe increasingdigital acumen on the client side is a trend that willbecome more pronounced and pervasive in the years tocome.A few highlights from agency responses:“Many of our clients are bypassing traditionalmarketing for digital marketing. That isn’t surprising,but what is a shocker is that they’re clamoring fordigital experiences that are uber personalized.Knowing a customer’s name isn’t sufficient. They’reasking for higher customer engagement throughcomplex personalization. For example, aggregatingall user interactions (implicit and explicit) and serving‘personalized’ content based on that data. In otherwords, determining user preferences without directlyburdening the user for that information.”“One of the savvier trends we’re seeing among clientsis toward custom behavioral marketing driven byintegration of data platforms to allow for real-time ornear real-time optimization and iteration (i.e., agilecampaign planning and performance management).” “We’re seeing a real trend toward more digitallyexperienced marketers being promoted to more seniorroles within client-side organizations.”“In their quest to do more with less, clients areacquiring more digital expertise, either through theaddition of digital agencies to their rosters and/orcreating internal digital teams, often by hiring formeragency professionals.”“Marketing and Technology teams are working moreclosely together on the client side. Such cross functionalteams are driving the delivery of innovative new
marketing abilities.”“More technologies and technology skills are enteringthe marketing department on the client side. We call itthe rise of the Marketing Technologist.”“We’re finding that marketing professionals atforward-thinking client organizations not only havea strong holistic understanding of how their companybusiness operates, but also much more technical savvyin understanding internal systems as well as customersdevices and touchpoints.”“Clients who used to work in silos are now tearingdown walls between departments to integrate moreclosely with teams who have consumer-facing roles orare involved in product development.”
TheSoDAReport Section 1 : Digital Marketing Outlook Key Insight: Digital marketing budgets and client investments in digital agencies will grow at a more intense pace in 2013 and 2014. Client Investments in Agencies Trending Upward Q. Which of the following best describes your organization’s approach to managing and executing 14% 14% digital marketing with 28% agency partners? 44 % Nearly 30% of client respondents indicated they were increasing agency investments in digital marketing efforts this year. This is not only a testament to the fact that the global economy has We’re Maintaining the Status Quo shown signs of improvement We’re Increasing our Agency Investments (albeit far from robust growth), We’re Decreasing our Agency Investments Over Time but also to the realization that Doesn’t Apply to Us digital provides stronger value than other channels as indicated in the next table on budgeting shifts.
Some of the reasons… • Agencies are benefitting from clients’ reluctance to expand headcount. While many clients are expanding internal teams focused on executing and maintaining existing digital initiatives, most are looking to agencies for counsel and support when it comes to more senior-level, strategic digital marketing roles. • The measurability of digital has given it more clout, although – admittedly – mining the avalanche of data generated by digital efforts is still a major challenge for both clients and agencies. • More of the clients’ audiences are paying attention to them on digital channels.
Budget DecisionsShifting inFavor of DigitalProjected Budget %We’re decreasing our digital marketing budgets 11%We’re maintaining the status quo 34%We’re increasing our digital marketing budgets withoutincreasing overall marketing spend (reallocating existing 39%budget into digital)We’re increasing our digital marketing budgets andincreasing our overall marketing spend 16%Other (please specify) 0% Q. Which of the following best describes your organization’s projected budget for digital marketing initiatives in 2013? Almost 40% of clients indicated they are increasing digital budgets without increasing their overall marketing spend (reallocating existing budget into digital). Another 16% say they’re increasing the overall size of the marketing pie (increasing overall spend and digital budgets). Any way you slice it, this is good news when it comes to the value being placed on digital marketing efforts.
Industry Insider Section Preface The Psycho-Dynamics of Experience Design Putting Innovation to the Test Agency Ecosystems That Work Why Your Math Teacher is Killing Your Creativity The Point of Awards Recruitment Agencies: Breaking Old Perceptions 30 Seconds of Wisdom The SoDA Buzz Word LauncherGoing East – Why Asia Should Be on Your Growth Roadmap Related Research Insights The SoDA Report 2013
The SoDAReport Section 2 : Industry Insider One of the most challenging issues facing digital agencies and production companies over the past decade has been the lack of shared insight. As the pioneers of 10 – and even 5 – years ago blazed their way through new technologies and changes in media consumption, the lack of good discussion, best practices and news forums created an industrial cowboy culture. Everyone alone together. Every challenge unique, twice.Sean MacPhedran Every day was trial by fire, and gut instinct was a betterIndustry Insider Section path to success than a case study to follow.EditorGroup Planning Director, SoDA has played a key role in elevating dialogue andFuel best practices in the industry by providing a forum for industry insiders to share issues that are unique to the new generation of advertising. It’s my hope as the Editor for this section that it will remain “always in beta” and that it presents the fluid sensibility of a discussion - what makes SoDA unique. I welcome anyone to contribute by emailing me at firstname.lastname@example.org In this issue, Tony Quin, SoDA’s Chairman & CEO of IQ, provides insight into the most critical, but often overlooked, element of interactive – The Click. Joe Olsen, CEO of Phenomblue, discusses what innovation culture looks like in practice, and Matt Weston, Copywriter at Soap, gives his perspective on the evolution of the creative team from the trenches. Controversy abounds as we address Awards Shows and Recruitment Firms with Ignacio Oreamuno, Executive Director of the Art Directors Club, and Andrea Bertignoll, President of KANND Recruiting. With interviews, we explore how these two areas are critical to our industry.
Finally, we open the floor to members, with 30 Secondsof Wisdom on a wide range of topics, and present someamusing suggestions for horrible new buzzwords thatwe’ll collectively pray never enter the lexicon.
The SoDAReport Section 2 : Industry Insider Tony Quin, Principal, IQ The Psycho- Dynamics of Experience DesignWith a background asa writer, director andproducer of network TVshows and commercialsin LA, Tony Quin foundedIQ in 1995 as an agencyspecializing in television.In 1999, IQ began thetransformation to adigital agency. Today theagency counts numerousFortune 100 companiesas clients and has won For years I have been preaching the strategynumerous national and of Click/Reward. The idea is simple, every timeinternational awards. Born someone clicks within a digital experienceand educated in the UK, something pleasant should happen. This idea,Tony is a founding member while perhaps intuitive, flows from a numberof SoDA and Chairman of of observations. First, we live in an instantthe Board. He also serves gratification society, and, of course, we areon the Board of the School all pleasure hounds. But, more importantly, itof Communications at Elon comes from mapping buyer psychology toUniversity. the sales process.
Understanding the BuyerHow the unique dynamics of digital media connect withthe psychology of a buyer, on the path to purchase, isthe key to creating successful digital experiences. Thispath today is often presented as a wonderfully busychart with a myriad of touch points and influences.But in the end we all go through the same simpleprocess: first we are unaware of a specific need, thenwe recognize it as a potential need, then we explore itsvalue. And then, if we continue, we evaluate our options,finally make a choice and buy.Yes, there are many factors and forces that influencethis along the way, but block out all that noise for aminute and focus on the buyer’s basic motivations.Through this process our motivation shifts from passivein the early stages, and unwilling to invest much effort,to active in the later stages once our intention startsto crystallize.Creating the User PathOur earliest attempts at IQ to codify these psycho-dynamics, and create experiences that enable the buyingprocess, were expressed in the UX principles of DirectedChoice and Incremental Engagement. Directed Choiceessentially holds that unknown visitors to a brand siteshould be assumed to be in marketing explorationmode; passive and without formed motivation. At thisstage, it is the brand’s responsibility to make choice veryeasy and intuitive, to reduce or eliminate work, analysisand the number of choices. Of course someone with atask to accomplish can always self identify at any time.Next comes Incremental Engagement. This breakscomplex value propositions into steps where each steprequires a choice that takes the user closer to personalrelevance. This UX principle recognizes that mostvalue propositions are complex and require a timecommitment from the prospect in order to receive
the whole story. The problem is that before prospects“ Incremental are sufficiently motivated they won’t commit to anEngagement is also investment of time or effort, so we make each step abased on recognizing small commitment. Incremental Engagement is alsothat the more personally based on recognizing that the more personally relevantrelevant something is, something is, the more compelling it will be. Everythe more compelling salesman knows this. If you’re looking for a truck and ”it will be. the sales guy shows you cars…well, you get the idea, and that brings us back to click/reward. Rewarding the Click So far we have learned that we should make things really easy for prospects at first, we should make commitments small and get them to what’s personally relevant as quickly as possible. But this is all pretty analytical. It assumes that people are pursuing their interests analytically. Actually, evidence suggests that people explore and make decisions more emotionally than we think. As Charles Hannon, professor of Computing and Information Studies at Washington & Jefferson College, discusses in this excellent post, the dopamine reward system produces good or bad feelings based on what we do in the world. The implication of this, as Jonah Lehrer explains in his book How We Decide, is that rational decision making, thought to trump the emotions since Plato, is actually not how we do it. Recent neuroscience has reversed this age old model of how human beings make decisions by showing that indeed emotions, some stimulated by the dopamine reward system, are core to the process. It seems that we follow patterns instinctively and when patterns are supported, and just to confuse things, sometimes even when not, dopamine is triggered that reinforces our decision-making. That means every time we make a successful click or get rewarded on our path to purchase we get a shot of dopamine, which reinforces what we are doing. This
clearly tells us that we should be designing interactionsto understand and follow the emotional journey abuyer makes on the way to a sale, and to study wherewe are on the emotional/analytical continuum at everymoment of the path to purchase. This insight allows usto focus our experience design so that we re-enforce ourprospect’s natural process rather than block it.
The SoDAReport Section 2 : Industry Insider Joe Olsen, President & CEO, Phenomblue Putting Innovation to the TestJoe Olsen is the Presidentand CEO of Phenomblue,an industry-leading brandexperience agency. Heco-founded the agency in2004, which has officesin Omaha, NE, and LosAngeles, CA. Phenomblue Today we see so many companies callhas been featured in USA themselves “innovative”—whether or notToday, Ad Age, The New evidence exists to support the claim.York Times, Fast Companyand Inspired Magazine and While you can’t become innovative justhas received recognition because you say you are, you can easilyfrom the Webby Awards, facilitate an innovation-ready mindset.the CLIO Awards, SXSWInteractive Awards and Like learning a new language, innovationthe Favourite Website takes knowledge, risk, innate talent and theAwards. He is a seasoned willingness to try out new things with trustedentrepreneur, the creator of peers in private before putting yourself to thethe Drop Kick Platform and public test. Above all, it takes belief in thea co-founder of Drop Kick worthiness of the goal and a commitment toVentures. work hard enough to get good. Innovation initiatives can help build your agency’s capacity for success. Like immersive language courses,
these initiatives are intense learning experiences“ Agencies can start an that generate results quickly. Put some passionate,innovation initiative in intelligent, curiously caffeinated people in a room whotheir office without too are willing to devote their imaginative faculties to solvemuch trouble. Get some a specific problem, and you position your agency to dowhite boards, markers, something useful nobody ever has before.pencils, paper, beer andRed Bull, and gather Agencies can start an innovation initiative in their officeyour finest minds in a without too much trouble. Get some white boards,room just uncomfortable markers, pencils, paper, beer and Red Bull, and gatherenough to keep everyone your finest minds in a room just uncomfortable enough ”relaxed but alert. to keep everyone relaxed but alert. Set aside a day for an innovation exercise, so everyone takes it seriously. Then let your team define a problem it wants to solve, and leave them alone until they’re done or asking for help. We call these Bonus Days at Phenomblue. Once a quarter, our agency goes dark for 24 hours—meaning no client work whatsoever—while we split into teams and compete for Bonus Day glory. Each team takes a project from start to finish in a single day. The only rules, other than “no client work,” are that we all present our projects to the company the next day and abide by maritime law. Phenomblue also implements large-scale innovation initiatives, like Signature Reserve, a semiannual experiment where we devote 200 billable hours to an internal passion project—no strings attached, other than a finished product that provides real utility. Finally, Skunkworks takes our best ideas and puts them through a rigorous vetting process conducted by agency leadership. If the idea succeeds, it gets produced during client gap time. It could then get financed, incubated and spun off into its own business through Drop Kick Ventures—a company I co-founded to help marketing, communications and creative agencies bring ideas to life (as featured recently in Wired magazine).
Phenomblue absorbs the cost of our innovationinitiatives because we know the payoff is worth it.Whether it’s a new piece of technology we don’t knowwhat to do with yet, a super-successful campaign fora client or a market-ready product, our innovationinitiatives keep our team prepared for the chance ofa breakthrough idea.Like language, innovation is dynamic. If you don’tpush yourself to practice, you might lose it. Innovationinitiatives can help.Image Source: 1. http://pbfcomics.com/197/
The SoDAReport Section 2 : Industry Insider Matt Weston, Copywriter, Soap Creative Agency Ecosystems That WorkMatt Weston is seniorcopywriter at SOAPCreative LA. Born in theUK, he has worked atseveral ad agencies acrossthe globe in Sydney, Parisand now Los Angeles.He has created severalintegrated ad campaignsacross digital, tv, print,outdoor and radio. Heloves Marmite on toast, The experience of advertising creativesDnB and butchering French has changed radically over the past decade.as a second language. We’ve moved from creative teams of two intoPreferably all threetogether. multidisciplinary teams, and, as often as not, no two are ever alike. Digital advertising is breaking down traditional barriers between thinkers and doers - multidisciplinary teams now rule the studio. As a copywriter reborn in a digital agency, I now routinely bump brain cells with technologists who would previously have been in another room.
Your partner is your best mate in the agency. Theperson you go into battle with every day against othercreative teams that want your brief. It’s the kind ofcamaraderie that prevents you from tearing a printoutof horrible client feedback into little pieces and collaging‘ASSHOLE’ on your CEO’s skydome of an office.So how did I feel about sitting opposite a guy whoseinspiration came from Minecraft? Rubbing conceptualshoulders with someone who writes PHP? What is PHP?Sure, I knew what I was in for in the digital world. Myinner creative welcomed the shake-up of convention. Ijust didn’t count on my inner adwanker sticking his uglyhead into the mix. But this room didn’t have time for adegos with a close deadline and a reputation to meet itwith a hot digital solution.Of course, the next bit you already know. Ourbrainstorming session worked its productive little buttoff. The social media guy had an awesome gamingsuggestion. The developer came up with a great angleon how to execute it and I tied in the insight behind theidea that was true to the brand.Maybe there was something to this developer-designer-writer-whoever else thing after all.Image Source: 1. http://www.atterburybakalarairmuseum. org/Capt._Stratton_Hammon__Mrs._ Allred_Nov._1942.jpg
The SoDAReport Section 2 : Industry Insider Tony Clement, Head of Strategic Planning, TBG Digital Why Your Math Teacher is Killing Your CreativityTony Clement is the Head “I’m not a data person.”of Strategic Planningat TBG Digital. Born in What if by saying these small words you wereBrooklyn, raised in Sydney poisoning your agency and slowly chokingand now living in London, off your career? What if by accepting thishe misses all things above statement you were carving out corners of5 degrees Celsius. With a measurement misperception and building databackground in Statistics prisons in your own creative community?and a love for Converse, Let’s do a symptoms check. Do terms likehe is a Strategist thatbrings together data and ‘pivot tables,’ ‘recursive loops’ and ‘weightedcreativity to help ideas moving averages’ make you feel frozen withfind their purpose. He has indecision. If so, you need to take a breath,contributed to four AFA think back to your high school days and curseEffectiveness awards and your Math Teacher. Pause. Do it again, andhas an APG award for then read on with teenage angst.Best Use of Data. Recentlyjoining TBG, he has worked I blame Mr. Chinas Strategist and/or Data My year 12 math teacher, Mr Chin, was a weird guy.Geek for a number of places He had a bad beard, bad breath and spoke to theincluding Wunderman, chalkboard for 45 minutes at a time while his classBMF Sydney, Leo Burnett sputtered into oblivion at their rickety wooden desks.and JESS3. You know the feeling. We’ve all had a Mr.Chin or two. It was by far the most dreaded class to attend, the anti-Christ to PE, the classroom where no one wanted
to be at any time of day. And unfortunately, the slowtorturous doctrine of mixing boredom with formulaicmemory tests didn’t come to an end at high school.The truth is over your high school and universityyears, you either avoided math and swayed to arts,or you punished yourself by attending 30 to 40 hoursof lectures each week for years, just to emerge withbattle scars and emotional trauma so deep, it actuallyhindered your ability to speak like a normal human.Your agency and your career need you to leave Mr. Chinat the chalkboard. And instead of coping with data, itneeds you to rethink how it can become a part of thecreative culture so the gap between science and creativecan begin to heal.Could you help your agency see the beauty of science tobuild ideas, and learn how to speak data without usingterms like ‘p-value’ and ‘Central Limit Theorem’ just toget people nodding in synchronized misunderstanding?Well if want those things, tell your Mr. Chin that he isthe one who has failed, because numbers are more thanformulas, suppositions and marks out of 100. Tell himby:Taking the power back from Mr. Chinand giving it to your Inner GeekHave you ever noticed that most people have a hiddenGeek within? But they are pushed down, kept quietand exist in fear. But what’s even more interesting, isevery now and then, you’ll see that person’s eyes lightup when they let the Inner Geek out to solve a ‘data’problem, and the Geek rejoices.Let your Geek out for a walk and take small Geeky stepsto make your Inner Geek stronger.Try this - The next time you go to the data team, sitwith them and ask what they are doing, and how they
are doing it. Or if you have a ‘how do you do that?’“ The collision of question, like, ‘how do you create a pivot table anddata and design chart’, just go to them and spend 15 minutes exercisingis demonstrating your Inner Geek. It’ll be time well spent.to the industry thecommunication I pick pivot tables as a simple example, becausepotential of data. ” managing the information is half the battle and if you can do this, your Inner Geek will hug you. Rage using the machine - Use the open sources on the net to learn at machine speed Let’s face it. If you can remember more than a handful of formulas from high school or university you are doing extremely well. The human brain has an effective memory loop of two seconds when it comes to digits, which might explain why it’s so hard to memorize phone numbers. Fortunately, the internet has more memory than us all, and making the most of that collective intelligence and openness with data is going to help you become a data beast. Try this: Ever wanted to learn how your digital developers and producers build those web apps and other cool digital stuff? Then Code Academy gives you a very friendly and free start to understanding the principles of producing digital experiences. Open eyes with art, instead of blinding them with science The collision of data and design is demonstrating to the industry the communication potential of data. And no, I’m not talking just about infographics, that’s one output. I’m talking about getting people to imagine (yes, imagine) what data can reveal to them, why that is provocative and how to communicate it.
During a data academy session I was doing, I held this upand said, “That is all of my banking transaction data, andI have a problem, but I never expected it to be this bad.”My savings problem is something that I wouldn’thave seen unless I put the information into thisdifferent format. And that is the power of datavisualization, which I think is best said by an Americanmathematician, John W. Tukey in 1977:“The greatest value of a picture is when it forces us tonotice what we never expected to see.”Often organic or manmade facts can propel us to placesof unexpected intuition and insight. And working forthose facts is just another form of applied curiosity.Start to close the gap in your agency by learning a fewtechniques and setting a reminder for Monday saying,‘Let out the Inner Geek, Mr. Chin got it all wrong.’
The SoDAReport Section 2 : Industry Insider Interview with Ignacio Oreamuno, Executive Director of the Art Directors Club The Point of AwardsIgnacio Oreamuno is We caught up with Ignacio as he was enjoyingthe Executive Director of a mojito in Miami, surveying the locationthe Art Directors Club &President of the Tomorrow of his next Award Show – the ADC 92ndAwards. He is also the Annual Awards + Festival of Art and Craft infounder of IHAVEANIDEA, Advertising and Design.one of the world’s largestonline advertising MACPHEDRAN: Why are awards important tocommunities with 12 our industry?million pages read a year. OREAMUNO: It used to be that awards were mainly about the winners. Creativity is hard to measure. OnlyInterview conducted the best of your peers can really judge, because so muchby Sean MacPhedran, of it is qualitative, it’s a craft. We need to collectivelyIndustry Insider Section be able to recognize quality. In an industry that is soEditor and Group PlanningDirector at Fuel. creative, we need some kind of benchmark, a goal to work towards, otherwise how do you teach? Some shows are more focused on metrics, but the line of measurement is so fuzzy that a good analyst can make a terrible campaign look like it performed amazingly. Maybe there was 100 times more media dollars. Maybe they slashed prices at the same time as a horrible ad campaign launched.
The awards industry needs to be more about education.What is that amazing idea that everyone needs tounderstand? What are the 20 amazing ideas this year?They’re all going to be different. Awards are importantbecause they are a forum where we can all share oursuccesses, and the rest of us can learn from them. That’swhy we are pushing to make awards more educational,and not just about handing out trophies.MACPHEDRAN: Do you think awards are relevantto clients? Or are they more about self-congratulation?OREAMUNO: Absolutely. People want to workwith winners because they’re more likely to win again.Awards are an easy way for clients to recognize howwell-respected their agency is by its peers. Not everygreat agency is going to be at the top of the GunnReport, but it tells you something that an agency hasbeen recognized. And clients are as much responsiblefor awards as the agencies. Creatives always complainthat “Oh, I had a great idea, but the client didn’t like it.”But that is as much about risk as it is about how goodthe idea might have been. Maybe the idea was fun, but itwas completely outside of the risk tolerance the client’sstrategy allowed for.Awards help bring clients into the fold of creativity.When Old Spice wins an award, you know… Everyoneknows, that it was an entire team that worked tomake that kind of breakthrough campaign happen. Itcan’t happen without the client. Not just because theyapprove it, but because they’ve helped craft the strategyto bring the brand into a place where it’s ready for thatkind of innovation.And for clients who are looking to the future – when thecreative team has some idea that seems crazy - whenyou can look out into the world and see other risky ideasthat worked, things that broke the mold, it starts to set
a precedent that the only way to win in the marketplaceIS to innovate. To do something different andremarkable. Awards help showcase those successes in aformalized framework.MACPHEDRAN: On the topic of education, how areyou working to bring that value back to the industry?OREAMUNO: Well, on Tomorrow Awards – the entireprogram is designed around education for innovation.Instead of judges hiding in a box and voting, everythingis filmed. Why did they pick that and not this? Youget to see the debate, and there is a lot of debate, thathappens over each choice. But even before it gets to thatstage, we make everyone a judge. If you are a technologyintern in London or a senior Creative Director in Egypt,you have a vote. We wanted people to explore the casesfor themselves.The point of the Tomorrow Awards is to tear downall of the walls. There are no categories. It’s all aboutthe innovation of the idea – and no two are ever alike.We need to train ourselves to think so differently thanbefore, and no one is really doing that for the creatives.The Art Directors Club is currently experiencing a totalre-birth. We’ve gone back to our roots of art and craft.All our programs have been updated to reflect this.From taking our 92nd annual to the tablet to creatinga community for our members that is fun and relevant,instead of preachy and old. The biggest thing we’redoing this year is the 92nd Annual Awards + Festivalof Art and Craft in Advertising and Design which is acompletely new and different type of festival. Instead ofhaving creative directors speak, I’m inviting some of themost inspiring artists from around the world to teachus the skills of craft, creativity and art. We’re going tobe doing everything from photo workshops to legos tocreative brainstorming. And all this will take
place in Miami Beach, a great place for networking. It’sa win win for the industry and for all those who attend.We need to fall back in love with our craft, because theonly thing that separates us from a client is the fact thatwe’re supposed to be creative artists.
The SoDAReport Section 2 : Industry Insider Interview with Andrea Bertignoll, President of KANND Solutions Recruitment Agencies: Breaking Old PerceptionsAndrea Bertignoll serves One of the most hotly debated topics isas the President of KANND the need (or lack thereof) for RecruitmentSolutions. Andrea has anacademic background in Agencies. We sat down with Andrea Bertignoll,Technology and 20 years of President of KANND Solutions, to get therecruitment and business recruiters perspective on how agencies andmanagement experience. recruiters can work better together.Interview conducted MACPHEDRAN: Why is recruitment treated as theby Sean MacPhedran, red-headed stepchild of services in our industry?Industry Insider Section BERTIGNOLL: There are many reasons, but I thinkEditor and Group Planning most of them are linked to the bad apples of ChristmasDirector at Fuel. past. A poor reputation has built up, I think mainly stemming from the actions of older firms that aren’t as consultative and haven’t adapted to the changing needs of the clients and candidates. There are still too many of the stereotypical “body shops” out there who are in the game to place anyone into a spot vs. making sure that it’s a good fit for both the client and the candidate alike. There is more to it than matching a resume to a job description and then charging a fee...which is yet another bone of contention. In addition to all of that, “recruiting” is often seen as something that HR should already be capable of
doing in-house. Not always the case. As the numberof specialized roles keeps expanding, it’s next toimpossible to expect an HR Manager to manageregular HR abilities and still recruit the right personfor the right role for multiple requirements. Seriously,in some of the cases I’ve seen, they are juggling theseresponsibilities and don’t have the authorization to usea recruitment agency to help...something’s got to give.All that said, it’s not that HR Managers are incapableof recruiting, that’s the furthest from the truth, butwe see many of these people essentially trying tohold down two full time jobs...daily HR managementresponsibilities, and recruiting multiple specializedmandates simultaneously.MACPHEDRAN: It seems like a good analogy wouldbe Account Management vs. Business Development?BERTIGNOLL: Absolutely, it’s a perfect analogy.Many HR professionals that I’ve worked with pursuethis career path for the nurturing/farming aspect of it.They are responsible for managing the company’s mostprecious assets... its employees. An HR Manager or eventhe Hiring Managers who sometimes have their ownrecruitment mandates aren’t in the position of hunting,but managing what they have.No company would expect an Account Manager tobe in the mindset of hunting for new clients all thetime. That’s what Business Development does. It’snot just a different role. It’s really a different mindsetand personality type. Recruiters are able to keep moreactive databases. We hunt to find the best talent. Wedevelop relationships with talent and hunt to find asmuch real information as possible. For example, mynew passive candidate “Billy” might have started a newrole a few months ago, but I know that he despises hisnew supervisor and the commute time is already gettingto him. I know this because he tells me when I probefor the right information and simultaneously create
See what respondents to a relationship with him. I know what his key “mustour ’13 Digital Marketing haves” are and they aren’t usually the salary. They canOutlook Survey said were be anything from the work-life balance to the preferredkey job satisfaction factors corporate culture or anything within... Everyone isfor them. Spoiler alert… different. Our job is to hunt for this information, huntit really isn’t just about for the talent, and hunt for the truth... If we don’t, wesalary. can’t make the right match. At the end of the day, many of us are in it because we LOVE matchmaking. I think we just thrive on getting people to “hook up” with the right people. We all have a friend who does that...usually the one trying to get everyone married. They just get a kick out of helping people connect. Just like your biz dev people who get the adrenaline rush from closing a deal. MACPHEDRAN: How would you suggest HR Managers go about working with Recruiters then? BERTIGNOLL: Mainly it’s got to be about fit with the company. Obviously, from our perspective, a retainer is the best thing. But a contingency-based service is going to make your recruiters work a little harder. After a while though, you’ll know what agency you like to work with and which one is a waste of your time... Whether it’s the quality of the talent, the follow up, the service, etc. I’d recommend picking a couple of recruiters that you’ve developed a comfort level with... You know, the ones that you trust won’t try and “squeeze a square peg into a round hole.” The ones that you can say... “get this mandate off of my desk” and they bust their behinds to get it done. The one who understands your needs and then gives you a full rundown of the needs of the candidate. Essentially today’s talent pool is fluid and, as such, recruitment is a full-time job. If you can use recruitment help, find a firm you trust. If your company can do it, build a dedicated team, but don’t assume that you’re going to get the best talent if you haven’t allocated the resources.
MACPHEDRAN: Is there any other advice you’dwant to give?BERTIGNOLL: Most of us who go into business insmall recruitment firms are really just passionate aboutthe challenge. Making the right match for a client’sneeds with the ideal talent gives you the “warm andfuzzies” for lack of a better term. To make that match weneed to have much more than just a job description...We need to know details about the team, new projects,the direct supervisor, soft skills that would be ideal, etc.That said, I’d say always getting the hiring manager/department head involved early and working with yourrecruiters is a good idea. They’re the ones who aregoing to be able to best describe all the nuances of whatthey’re looking for.
TheSoDAReport Section 2 : Industry Insider 30 Seconds of Wisdom We asked SoDA Members what they’d want to share if they had the conch for 30 seconds. What came back was a deluge of thoughts ranging from usability advice to insights into client relations, as well as the occasional joke. Innovation & Creativity “ Look for three, big innovative wins and then be relentless in delivering and making sure those happen. Read Insanely Simple by Ken Segall -- pretty good cure for the talk-it-to-death blues. ” — David Rossiter, Creative Director, Enlighten “ Creativity is being replaced by flexibility.” — Dan Kennedy “ Process can’t do the work for you. It’s provides guidance, but it’s not a defined path to guaranteed success.” — Anonymous
Teams“ Put your people first and enable them to make changes: both internally and externally. Then sit back and watch the magic happen. ” — Ranae Heuer, Managing Director, Big Spaceship“ Don’t be afraid to pull in experts from outside your own organization. We all want to believe we can do everything, but, sometimes, pulling in a true expert will not only end with an incredible result but will also serve as a learning opportunity for your teams. ” — Anonymous“ Optimize your time and resources. First thing every day, we regroup with our team and decide how the day will flow. Now, we start working at 10AM and stop at 7PM. And everything works. ” — “The Most Amazing Producer in the World”“ Developers and designers need to be more willing to iterate when it comes to development. I still see a trend where Project Managers (stakeholders), afraid of missing a timeline, place pressure on teams to get ” it right the first time. That just isn’t realistic. — “Mysterious Mustafa”Clients“ Re-think who your clients really are.” — Vassilios Alexiou, Founder, Less Rain“ You’ll always get undercut by someone, so make sure quality - not money - is your value proposition.” — Matt Walsh, Director of Business Development, Resn“ The focus on growing our business and our clients’ businesses shouldn’t be on selling. If we focus on truly solving problems and providing opportunities, that results in revenue growth. ” — Kt McBratney, General Manager, Phenomblue
“ Preparation. To be prepared is not just showing up 10 minutes early to an engagement. Rather it’s the assembly and construction of knowledge pertaining to the subject. Whether this is researching a company before a job interview or gathering vital credentials from clients, you aren’t truly prepared unless you’ve really done your homework. ” — Lyndze Blosser, Interactive Designer, Terralever“ Three-way partnerships (traditional agency, client, and digital agency) are fraught with backstabbing danger.” — Anonymous“ Marketers say they understand how paid, earned, and owned media work together, but most don’t ” really. — Dave Bovenschulte, EVP Digital Strategy & Product Development, ZemogaConsumers“ Think just as hard about PEOPLE as you do PRODUCT. In this world where everything is set to formulas, segments, demographics, spreadsheets, legalities and logistics, we have to remember that PEOPLE (we call them consumers) are at the heart of making this all work. These people are human, and they don’t always do the logical things we’d like ” to believe that they’ll do. — Jon Haywood, Planning Director & Cultural Attache, DARE“ Content marketing is king. Embracing branded content has been an important business tactic for a long time, but it’s REALLY important now that consumers have started to expect it. ” — Tessa Wegert, Communications Director, Enlighten & Media Buying Columnist, ClickZ.com
“ As we head into 2013, email haters will rise again, proclaiming the end of this old school marketing channel. My advice, don’t believe the hype people... it’s alive and well, and here to stay.” — Andy Parnell, SVP, Client Services, TerraleverUsability“ Use technology to create utility; don’t use it to make things more convenient. If convenience is the goal, our society is fucked. (And don’t let technology replace good craft.) And... JUST BE HONEST. ” — Erin Standley, Design Director, Phenomblue“ Social media web toolbars that live at the bottom of the webpage - these need to die a painful death and go to their specially assigned rung in hell. Just about the biggest annoyance currently in the web world. ” — Andrew Hainen, Interaction Designer, Enlighten“ Always do wireframes or sketch interfaces before starting design. It’s easier to move around boxes and shapes as you think about the experience than it is to redesign parts as you’re working towards a great user experience. ” — Joe Branton, Design Director, Grow InteractiveImage Source: 1. http://cloudfront.inthecapital.com/ files/2012/08/dalai-lama-points-his-finger. jpg
TheSoDAReport Section 2 : Industry Insider The SoDA Buzz Word Launcher Ideation, Phygital, Viral, Interactive Video, Gamification, Momversation, Phablet, Native Advertising, Big Data, Monetization, Engage and Social Currency are all words that SoDA members suggested for permanent deletion from our professional vocabularies. But what should replace them? We received a slew of suggestions for horribly unnecessary buzzwords, and hope that you will begin to use them in everyday discussion. Nudge nudge, wink wink. Qualitangible Definition: Insights that ride the threshold between qualitative observations and wild hearsay, but need a good label to be taken seriously. “It’s useful for those occasions when you need to pass off a conversation with your mate at the pub as a research driven insight,” suggests Amer Iqbal from Deepend. In use: “Most consumers will tell you that they use their smartphone in the washroom. We had
a qualitangible insight that this pattern of behavior carries over to urinals as well, but with a lower adoption rate. It indicates that our Urinal Puck AR Experience is going to be well received by our target audience.”Web 10.01 Definition: A level of digital integration so broad and advanced that it encompasses all innovation for the next 40 years, removing any need for further version upgrades in vocabulary. In use: “Your Xbox 720 fell in love with your Google Glasses over Vine? That’s so Web 10.0. We should leverage this for our online dating client.”Corporate Bohemian2 Definition: An employee who follows the lifestyle of a Key West transient while working for a large corporation. In use: “Oh yeah, Chuck is great. Total Corporate Bohemian. He threw a killer brainstorm in his office over drinks and a few of us just crashed under his desk. Haven’t seen him in weeks, but the presentation went really well.”Moupon3 Definition: A coupon that works on your mobile phone. In use: “It’s like a coupon, but for your mobile phone. We call it a moupon. I’m pitching it tomorrow as the Grey Poupon Moupon. It’s got legs.”Non-tourage4 Definition: A party of one. A term used to describe non-social behavior within social networks, or an
individual so connected in the physical world to their digital network that their “entourage” is invisible. In use: “That guy over there at table 5 said he was a party of 8, but he meant his non-tourage. He’s been in a Google Hangout for 2 hours and I think he’s also running Chatroulette.”Egosystem5 Definition: A self-sustaining system of egomania only tenuously connected to reality, but necessary for the life of projects and its own livelihood. In use: “It’s a great idea, but we need to incorporate more pet concepts and buzz words or it will never survive long enough in the egosystem to get to market.”Yak-a-demia6 Definition: The eye of the buzz word tornado. A rarified group in which only theory and discussion, never execution, is the currency of value. In use: “I went to a workshop at AGENCY REDACTED but it was total yak-a-demia. We were supposed to learn about producing for transmedia, but it was just a bunch of art videos and out-of- context Henry Jenkins quotes.”Digitable7 Definition: A person who interacts so much with technology they are rendered into a vegetable. In use: “Wendy is really on top of all this social media stuff, but she’s a total digitable in meetings. One time I spilled a coffee on her and she didn’t even notice.”
Let’s get to bidness!!!8 Definition: A phrase used to spur a group into action. Usually used after 2am or while suffering from a head cold. In use: “Let’s get to bidness!!! Our pitch is in 4 hours and I think Phil might have been arrested. Did anyone pay the bill?”Term Contributors: 1. Andy Parnell, SVP, Client Services, Terralever 2. Anonymous 3. Tessa Wegert, Communications Director, Enlighten and Media Buying Columnist, ClickZ.com 4-6. David Rossiter, Creative Director, Enlighten 7. Karl Reynolds, Creative Director, Deepend Sydney 8. Matt Walsh, Director of Business Development, Resn
The SoDAReport Section 2 : Industry Insider Ming Chan, CEO, The1stMovement Going East – Why Asia Should Be on Your Growth RoadmapAs Founder and CEOof The1stMovement,Ming was named asone of the “Top 10 AsianEntrepreneurs” by Inc.Magazine, and has ledthe agency to numerousaccolades including:three-time Inc. 500’s“Fastest Growing PrivateCompanies in America,”three-time “Best Placesto work in LA,” and “Top Having spent more than 15 years growing up20 Advertising Agencies” in Hong Kong (and still visiting every year), Iin LA and Denver. have always paid extra attention to the AsianThe1stMovement has also markets since I founded The1stMovement increated custom digital Los Angeles in 2006. In early 2012 we openedsolutions for some of the our first Asian office in Hong Kong, and weworld’s most well-known learned a lot from this experience. I wanted tobrands including: AT&T, share some of the lessons we learned for thoseAdobe, Cisco, DaVita, companies who are also considering a moveLexus, Pentax and USOC. into Asia.
But, first, let’s consider the following statistics:“ China might be yourultimate target market, • Four out of the top ten Fortune 500but there are still serious companies in the world are headquartered inchallenges to setting up Asia1shop there. The mostsignificant barrier is • 12 out of the 20 fastest growing countries insimply fundamental the world are in Asia, and have an averagecultural differences of 7% GDP growth in 2012 (vs. <2% growthbetween East and from US)2West. ” • Overall advertising spends in Asia are projected to grow at a rate of 7.6% in 2013 (vs. 3.8% in North America)3 • US-based, multinational giants like Apple, Nike, GM, and others have poured over US$49 billion worth of investment into China alone each year since 20094 With that context, here are the most important things we learned along the way: 1. Asia is enormous and diverse Asia is the world’s largest and most populous continent with 48 separate and unique countries, home to 60% of the world’s population and over 2,000 different spoken languages. Firms in Asia increasingly and regularly do business in more than one country, as we did recently with a project launched in 15 countries and in 7 languages. All on the same day at the same time. This required real on the ground local knowledge and cultural understanding. 2. our entry point is critical Y Projected to become the largest economy by the end of 20165, China might be your ultimate target market, but there are still serious challenges to setting up shop there.
The most significant barrier is simply“ Asia is the world’s fundamental cultural differences betweenlargest and most East and West. We chose to open in Hongpopulous continent Kong because it is one of the most multi-with 48 separate and cultural cities in the world. But Singaporeunique countries, home is also a good choice as it is a very Western-to 60% of the world’s friendly city for business. And, despite recentpopulation and over economic troubles, Japan is still projected to2,000 different spoken be top five in the world for digital advertisinglanguages. ” spend. Not to be overlooked – Indonesia and Malaysia – are two of the fastest growing countries on the planet. 3. onsumer behavior is different in Asia C While there is some opportunity to apply what we’ve learned in the US to the East, it is important not to underestimate differences in consumer behavior – and not only between East and West, but between different countries within Asia. For example, one recent project taught us that consumers in China spent on average four times more time online than consumers in Indonesia. A fact that caused us to adjust our campaign idea and local country execution plan. 4. our existing global clients can help you Y Chances are your company is already working with a client with global reach. Their knowledge, experience and network will undoubtedly help with your planning. For us, what started as a pipe dream of expanding into Asia quickly became a serious pursuit when we began working with global brands like Cisco, Pentax and Reebok. The experience we had working with their teams in Asia, and understanding how they act, how they communicate and how they think, made our transition into working with a local Asia brand that much smoother.
TheSoDAReport Section 2 : Industry Insider RELATED RESEARCH INSIGHTS Key Insight: Top digital agencies and production companies are becoming more proactive and are taking a larger seat at the table with clients and traditional agencies, based largely on the unique value and innovative IP they’re delivering. Undoubtedly, this is a trend that we’ve witnessed in past SoDA research studies, but it has become even more pronounced this year. Agencies and production companies are offering more education and training to clients, and developing labs and incubators to spur a virtuous cycle of innovation and IP development. In fact, product incubators are growing quickly in terms of their prevalence and importance for digital agencies, production companies and full-service agencies with digital capabilities – helping them win work and stay fresh. The Innovation Lab Explosion Innovation labs 39% at full-service and 61% digital agencies are proliferating Q. Do you have an innovation lab/product Yes incubator within your agency or production No company? The call for digital agencies to have increased responsibilities with respect to product / service innovations on the client side (Note: more than 1 in 5 client respondents to the ’13 survey say their lead digital
agency will have primary responsibility for product/service innovationat their company in the long term*), coupled with the fact that the vastmajority of agencies believe the best route to growth is to make things(unique, effective experiences and tools for brands and consumers) hasled to the proliferation of innovation labs and product incubators withinthe agency and production company space.Finding and cultivating talent who can contribute to a virtuous cycle ofinnovation for the agency and its clients is an arduous task. However,the very fact that these labs/incubators are being created is generatinga very positive benefit beyond things like VC funding. The initiatives arebolstering employee satisfaction. In fact, agency execs say the numberone benefit of innovation labs is talent retention (i.e., happier, moreengaged staff (47% of respondents).* Most client respondents indicated that internal teams at their companies willcontinue to have primary responsibility for product / service innovation (53% tobe exact), but lead digital agencies ranked second at 22%.
RELATED RESEARCH INSIGHTSKey Insight:Digital agencies and full-service agencies with digitalcapabilities may disagree on business models and the bestpath to growth, but they do agree on the need to focus oninnovation and IP development in order to thrive, and on keyadvocacy issues.Respondent OverviewAgency Type Agency Type % Full service agency (including digital and traditional) 45% Traditional advertising or marketing agency 3% (no In-house digital capabilities) Digital or interactive agency 44% (no in-house traditional capabilities) PR or social agency 3% Other (please specify) 5%Q. Which of the following best describes the type of agencythat you work for?In the 2013 survey, we saw a tremendous increase in the number ofrespondents from traditional advertising or marketing agencies that hadboth traditional and digital capabilities. In fact, agency-side respondentswere almost evenly split between digital agencies (44%) and traditionalshops with digital capabilities (45%).While the two sets of respondents agreed in many areas, their answersdid diverge in a few key topics.
Different POVs on the Future of Independent AgenciesDo you agree or disagree?-“Independent Agencies DoNot Have a Bright Future” Full Service Agencies with Digital Capabilities Digital Agencies 14% 6% 16% 26% 58% 80% Agree Agree Disagree Disagree Don’t Know/No Opinion Don’t Know/No OpinionQ. Thinking about the advertising industry broadly, do youagree or disagree with the following statement? Independentagencies do not have a bright future – the vast majority willbe absorbed by the major holdings.In comparison to digital only shops, full-service agencies were decidedlyless optimistic about the future of independent agencies. Only 6% ofdigital agency respondents agreed with the statement about the demiseof independent agencies, compared to 26% of full-service agencies.