The Fall of AOR (Advertising Agency of Record)
Ming Chan
CEO/CTO, The1stMovement
http://www.the1stmovement.com
Software/Web Developer – Silicon Valley
Work
Work
Work
Work
Work
I worked in the Ad Industry
About The1stMovement
The Advertising Industry
The Consumers
Maslow’s Hierarchy of Need
Consumers are now Co-Creators of products
Brands / Advertisers
• 110-year-old
• Over 40 flavors of Pepsi Worldwide
• 11 logo redesigns since 1898
• Over 30 different slogans since 1930
...
The Ad Agency – The Influencer
• $142 million spent in 2006
• $94 million spent in 2007
• $60 million spent in 2008
• BBDO out, TBWAChiat in (2008)
• Pep...
• Pepsi Digital – Moved to Huge
• Gatorade – Moved to VML
• Sobe – Moved to FirstBorn
• Ditch 2010 Super Bowl Ad
($33 mill...
Projected Global Ad Spending for 2010
Traditional AOR
New Breed of Agencies
Work
• Launched in 5 languages in 9 countries in Asia Pacific
• 4 Million unique visitors in 3 months
• Over 15k visits pe...
• Download proceeds generated $1 million for Team USA
• Over 20k visits per day on English & Spanish Microsites
• 27k down...
Work
• Launched in 5 languages in 9 countries in Asia Pacific
• 4 Million unique visitors in 3 months
• Over 15k visits pe...
Advertising on Traditional Media is NOT Dead
AOR Model Is Dated
Ming Chan
ming_chan@the1stmovement.com
http://www.the1stmovement.com
http://twitter.com/mingAtT1M
The Fall of AOR (Agency of Record)
The Fall of AOR (Agency of Record)
The Fall of AOR (Agency of Record)
The Fall of AOR (Agency of Record)
The Fall of AOR (Agency of Record)
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The Fall of AOR (Agency of Record)

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My Keynote Presentation at Media 2010 (www.media2010.com.au), The Fall of AOR. I predicted we will continue to see the fall of the AOR model in advertising as consumers have now become "Co-Creators" of products and merely as influencers, or co-story tellers, Ad agencies are forced to embrace the demand of consumers and at the same time, brands/advertisers are under heavy pressure to see measurable results and ROI fast. Brands are not going to wait for AOR to integrate traditional and digital, but instead, agencies are forced to collaborate, and move away from this singular, AOR approach.

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  • This is great. I was at Media_2010 but missed your presentation. One of 3 presentations that I'd say added alot of insight to the new media topic!

    @schmediachick
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The Fall of AOR (Agency of Record)

  1. 1. The Fall of AOR (Advertising Agency of Record)
  2. 2. Ming Chan CEO/CTO, The1stMovement http://www.the1stmovement.com
  3. 3. Software/Web Developer – Silicon Valley
  4. 4. Work
  5. 5. Work
  6. 6. Work
  7. 7. Work
  8. 8. Work
  9. 9. I worked in the Ad Industry
  10. 10. About The1stMovement
  11. 11. The Advertising Industry
  12. 12. The Consumers
  13. 13. Maslow’s Hierarchy of Need
  14. 14. Consumers are now Co-Creators of products
  15. 15. Brands / Advertisers
  16. 16. • 110-year-old • Over 40 flavors of Pepsi Worldwide • 11 logo redesigns since 1898 • Over 30 different slogans since 1930 • $142 million Ad Spending in 2006 History of Pepsi Ad
  17. 17. The Ad Agency – The Influencer
  18. 18. • $142 million spent in 2006 • $94 million spent in 2007 • $60 million spent in 2008 • BBDO out, TBWAChiat in (2008) • Pepsi Digital left TBWAChiat (2009) Pepsi Ad Trend
  19. 19. • Pepsi Digital – Moved to Huge • Gatorade – Moved to VML • Sobe – Moved to FirstBorn • Ditch 2010 Super Bowl Ad ($33 million spent in 2009) • Refresh Everything – Social Campaign ($20 million year-long campaign) Pepsi in 2010
  20. 20. Projected Global Ad Spending for 2010
  21. 21. Traditional AOR
  22. 22. New Breed of Agencies
  23. 23. Work • Launched in 5 languages in 9 countries in Asia Pacific • 4 Million unique visitors in 3 months • Over 15k visits per day • Over 20 minutes time-spent on average • Still one of the most successful Nike Football Ad campaign ever done Nike – 90 Days of Football
  24. 24. • Download proceeds generated $1 million for Team USA • Over 20k visits per day on English & Spanish Microsites • 27k downloads of Soundtrack widgets • Over 3k iTunes click through per day on iPhone • 2 million Video content views • Most-recalled sponsor feature during the Olympic game AT&T Team USA Soundtrack Campaign
  25. 25. Work • Launched in 5 languages in 9 countries in Asia Pacific • 4 Million unique visitors in 3 months • Over 15k visits per day • Over 20 minutes time-spent on average • Still one of the most successful Nike Football Ad campaign ever done Nike – 90 Days of Football • Over 500 Band Submissions (4x last year) • 86,000 votes casted • 50 million impressions online; 125 million impressions offline • 30k visits in 4 months; 60k visits in 6 months; and 7x Pass Along • Most successful online competition of its kind Airwalk – Unsigned Hero
  26. 26. Advertising on Traditional Media is NOT Dead
  27. 27. AOR Model Is Dated
  28. 28. Ming Chan ming_chan@the1stmovement.com http://www.the1stmovement.com http://twitter.com/mingAtT1M
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