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A Wake-Up Call for Agencies: Status Quo Won't Cut It
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A Wake-Up Call for Agencies: Status Quo Won't Cut It

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Bret Giles – President, AgencySide - A Wake-Up Call for Agencies: Status Quo Won't Cut It Anymore

Bret Giles – President, AgencySide - A Wake-Up Call for Agencies: Status Quo Won't Cut It Anymore
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  • AMERICANS ONLY: The Top Ten internet news sites attract a unique audience of 260,000,000, spending an average of 24 minutes a month on news sites (and this doesn’t include “non-journalistic” sites like Drudge Report, Huffington Post, etc.)
  • Foursquare has about 5.6 Million venues and Gowalla has 1.4 Million venuesFoursquare = 2,000,000 users; Gowalla = 400,000 usersMen outnumber women 2 to 1
  • MediumHours/Wk%Ad Spend (B)%Television13.536% $ 171.50 42%Internet12.233% $ 54.10 13%Radio6.217% $ 33.60 8%Newspapers3.18% $ 101.90 25%Magazines2.57% $ 45.00 11%37.51 $ 406.10 1Sources: Forrester, 2009; Zenith Optimedia 2009
  • That's the sharpest revenue decline in the 66 years Ad Age has produced the Agency Report.Only digital agencies saw an increase…U.S. digital agencies eked out a 0.5% revenue gain in 2009, according to the Agency Report. Health-care agency revenue slipped 1.6%. Fortunes sank in every other agency sector.Revenue downRevenue for traditional ad agencies dropped 9.3%, mirroring an 8.9% decline last year in U.S. ad agency employment. Media agency revenue plunged 10.3% in a year when U.S. measured media spending (as tracked by WPP's Kantar Media) fell 12.3%.Revenue for customer-relationship-management/direct-marketing agencies declined 7.4%, outperforming ad agencies as marketers put more emphasis on data-driven marketing.Promotion-agency revenue tumbled 13.1%, depressed by lower spending on event marketing.The Agency Report ranks 883 U.S. agencies, down from 912 agencies on last year's report. The drop-off partly reflects casualties of the downturn. Among agencies to close: Cliff Freeman & Partners, a former high-flying creative shop that shut its doors last October.This is an industry in constant renewal.
  • Focus on strategy, not on tactical implementation.You are the only folks who can show brands how everything fits together.Media companies can’t do it. BiasedIn house agencies are mired in meetings and too close.But none of these folks have the eye on the strategy – and that is where you can come in and win.

A Wake-Up Call for Agencies: Status Quo Won't Cut It A Wake-Up Call for Agencies: Status Quo Won't Cut It Presentation Transcript

  • status quo
    JUST
    DOESN’T
    CUT
    IT
    ANYMORE
  • Bret Gilesagencysidewww.agencyside.net
    480.355.0073
    Bret.giles@agencyside.net
    @bretgiles

  • The hardest part of this business is to realize that what you knew yesterday and all the things that gave you a sense of empowerment and prestige and security and safety is perhaps not relevant this morning…
    Perhaps tomorrow, somebody else sees something you missed because you keep thinking you knew it all.
    Dan Wieden, Wieden + Kennedy

  • Years Ago
    98 percent of NYSE companies print glossy annual reports for investors.
  • 70 percent of NYSE companies print glossy annual reports for investors.
  • 52 percent of NYSE companies print glossy annual reports for investors.
  • 36 percent of NYSE companies print glossy annual reports for investors.
  • Today
    20 percent of NYSE companies print glossy annual reports for investors.
    SOURCE: IRSolutions, 2010
  • Years Ago
    LOS ANGELES TIMES Circulation: 1,154,000
  • Today
    LOS ANGELES TIMES Circulation: 616,000
    SOURCE: Audit Bureau of Circulation
  • 2,453,000,000
    Minutes/month on a “newspaper” website
    SOURCE: NAA (www.naa.org) 2010
  • Years Ago
    ZERO updates
    NADA shared pictures with friends all at once.
    ZILCH telling all of your friends how much you like a brand.
  • Today
    has 200,000,000 more members
    than the has residents.
  • Years Ago
    Absolutely no one admitted they actually WANTED to watch ads by actively playing them over and over and over.
    Absolutely no one (broadcasters aside) could distribute a video that would be viewed 5,000,000 times in a few weeks.
  • Today
    Every single minute, 24 hours of video is uploaded to YouTube
    YouTube receives 1,000,000,000 views per day
    SOURCE: Business Insider, 7/7/2010
  • Years Ago
    People typing 140 character rants: 0
    People messaging 5MM people at once: 0
  • Today
    SOURCE: Business Insider, 7/7/2010
    65 million Tweets are sent every day
    Twitter has 190 million users
    and handles 800 million
    search queries per day.
  • Years Ago
    Oh yeah, people complained about brands. Only you often didn’t hear it and certainly didn’t have a venue to do much about it.
    Brands yelled at people. Some people listened, most didn’t. Either way, no brand had a way to capture wisdom from people to improve products and services.
  • Today
    National, regional, local – it doesn’t matter. Transparency rules and brands win by interacting publicly with fans and critics alike.
    10,000,000/mo US visitors to
    Google local results tell it all
    SOURCE: Quantcast, June 2010
  • Years Ago
    Public CHECK-INS at restaurants, retailers, airports, clubs, coffee shops, banks, etc.:
    ZERO
  • Today
    Over 100,000,000 Million Check-Ins
    at 5.6 million venues across the US
    SOURCE: Foursquare, June 2010
  • Today
    75% of US uses social media in general
    On average, they spend 6 hours, 13 minutes a month in this space. Last year that number was 3 hours, 31 minutes
    They spend over 5 hours a month at work on social media sites IN ADDITION
    SOURCE: Nielsen, Internet & Social Media Consumer Insights, 2010
  • I AM NOT ADVOCATING TO DITCH WHAT HAS WORKED; RATHER, IT’S TIME TO LOOK AT EVERYTHING THROUGH A NEW LENS.
  • Why do we stick with the same
    channels,
    metaphors,
    vernacular,
    ad units and
    buying habits
    that have worked in the past…
  • …when we know the ways we can best connect with consumers are fundamentally changing before our eyes?
  • We do this…
  • Because this is harder.
    If Skittles FB Fans were a state, it would be the 12th largest in the US.
    And Skittles can connect with them and them alone, whenever they want.
    They can rally them from their phones.
    They can ask for feedback.
    They can get them to market for them.
  • SOURCES: Forrester, 2009; ZenithOptimedia, 2009
  • SOURCES: Forrester, 2009; ZenithOptimedia, 2009
  • Addy Categories
    Collateral material
    Consumer or trade publication
    Direct marketing
    Interactive media
    Mixed/multiple media
    Newspaper
    Non-traditional
    Out of home
    Public service
    Radio
    Sales promotion
    Television
  • How About…
    Best spokesperson
    Most surprising yet successful audience target
    Best use of video
    Best use of consumer evangelists
    Most product moved
    Best irrelevant to relevant brand makeover
  • WHY YOU SHOULD CARE DEEPLY
  • SO, what is the antidote to status quo
  • “This is an industry in constant renewal”
    AdAge, 2010
    "The very definition of advertising is changing," said ReiInamoto, AKQA's co-chief creative officer. "Even as recent as three to five years ago, it was a cookie-cutter approach."
    The best way to invigorate the crowd is to form a model that mirrors the modern day social media beast. Agency 3.0 fits the bill. The old agency model fits the new realities like a square peg in a round hole.
    Clarissa Blur Group
  • 1.Realize these days are over.
    Doner has been a TV-first advertising agency … and the revamped firm is using broadcast as just part of a wider, more holistic approach to clients. “We want to socialize the brand,” … means employing an integrated strategy for a client that can include traditional avenues such as broadcast, print, direct mail, but also elements such as iPhone apps, Web sites, long-form Web content, games, promotions, shopper marketing, social media and event/live marketing. 
    Crains, April 25, 2010
  • 2. Beat competitors through your smarts, not your firefighting ability.
    Last year we were doing over 30 custom programs per quarter, and now we're doing 50, and often people were asking us, "I have this other thing I need you to do." And we had to pass on it. So we thought, "Why are we turning them away?“
    Conde Nast, April 26, 2010
  • 3.Acknowledge social media is not media-as-usual. Research, negotiate, buy, report does not work!
  • If you can’t find a lot of social mention on your brand, remember it’s not just about reporting on your brand. It’s about ethnographic studies that tell you the context of why consumers are doing what they’re doing.
  • 4.Get on the treadmill …
    Most important digital lesson I’ve learned:
    “Continually focus on innovation.”
    Tom Bedecarre, CEO of AKQA
  • Content Strategy
    Social News
    Social Shopping
    Location-based services / marketing
    Open Graph protocol
    Stop media planning, start connection planning – how do we best connect a brand we represent with its customers
  • Q&A