MCAD 2009 - Future of Advertising: session #03 recap (Feb 9)

The Future of Advertising Class #ADV 3041-01 | Spring 2009 | Mondays 1-6pm | Rm 416 Instructor: Tim Brunelle SESSION #03—FEBRUARY 9, 2009 EVOLUTION OF ADVERTISING AND THE ROLES IN THE AD AGENCY Creative Commons Attribution & Non-Commercial License

Today: 1. Brief history of advertising + the ad agency and various roles inside it 2. Siesmic shifts + panic = opportunity BREAK 3. Guest speaker: Scott Litman (Magnet360) BREAK 4. Guest speaker: Alan Wolk (Creative Strategist, The Toad Stool Consultancy NYC) 5. Assignment #1 discussion Next steps

Today: 1. Brief history of advertising + the ad agency and various roles inside it

Structure :: Then

Structure :: Then *Account *Creative *Agency Service Leadership

Structure :: Then *Account *Creative *Agency Service Leadership *Production *Administration *Media *New Business *Studio *Research

Culture :: Then 1. Male

Then :: Culture 2. Alone. Singular. Mysterious. Glamorous.

Then :: Culture 3. Difficult to quantify effectiveness and value.

Today: 1. Brief history of advertising + the ad agency and various roles inside it 2. Siesmic shifts + panic = opportunity

[Culture changes]

[Advertising changes]

Let this situation ferment for 30+ years...

http://www.adweek.com/aw/content_display/news/agency/e3i265790c0e524ea2bf3a3dc974fee7052

“ These guys all live as perpetual teenagers. They’re all hanging around, goofing off. It’s like college. ‘Trust Me’ is kind of about the death of [advertising] and the old ways dying out, how TiVo and the Internet are destroying the way these guys do things.” —Eric McCormack http://featuresblogs.chicagotribune.com/entertainment_tv/2009/01/eric-mccormack-tom-cavanagh-trust-me.html

http://bmorrissey.typepad.com/brianmorrissey/2009/02/decline-and-fall-of-advertising.html

“The truth of the matter is ... much of the ad world is still out of step with reality. These arguments about ‘the work’ betray a cultural problem. It’s like the finance guys still thinking it’s OK to buy corporate jets and give out billions in bonuses. They don’t get it. Times have changed.” — Brian Morrissey

Structure :: Now?

*Lead generation *Application development *Digital reputation management *Paid Search *Email marketing *Social media *Community management Structure :: Now? *Yellow Pages *Online media *Content Strategy *Digital out-of-home *Account *Creative *Agency Service *Loyalty programs Leadership *Production *SEO *Public relations *Administration *Design *Media *Mobile *New Business *Direct mail *Studio *Planning *Web Design *Analytics *Multi-variate testing

Culture :: Now?

You’re entering the ad industry at a time of vast cultural and institutional change, not unlike 1960. Once again, long held beliefs, processes and traditions are being proven ineffective, too expensive and wrong—and it hurts. The evidence is in the comments. In the chaos there is opportunity.

Guest speaker: Scott Litman http://magnet360.com

Introduction Past Experience ! Have launched, built, bought and sold over a dozen entities. ! Three start-ups have had exit events with 5X+ returns. Built and Operated connect@jwt One of the worlds largest digital ! marketing agencies. ! Staff of nearly 500, with 9 offices in NA & UK ! Revenues approaching $100 Million ! Servicing over 10% of the fortune 500 A partial list of our client experience © 2009 Magnet 360, LLC Confidential and Proprietary

Market Size The Market Is Large, But Ever Changing ! US Marketing Services $31.1 Billion (AdAge) ! 2008 Marketing Spending Down by 1.7% • Traditional Media (TV, Newspaper, Magazine) has had a double digit reduction. • Digital Media has grown with a 7% increase in display advertising and a 27% increase in pay per click (TNS Media Intelligence) ! Source : Forrester Research, 2008 © 2009 Magnet 360, LLC Confidential and Proprietary

Market Trends Spending Will Follow The Audience ! Marketing dollars will go where the eyeballs are ! Marketers will focus more on performance based media • The net result, we will see a $3 Billion dollar shift in services over the next 4 years in the U.S. (Forrester Research) Base: US Adults Source : Forrester Research, 2008 © 2009 Magnet 360, LLC Confidential and Proprietary

The Digital Divide Technololgy Adoption Impacts Audience Behavior ! The Mass Audience vs. a Fractured One • Years ago, three media buys could hit 80% of the adult public • Today, we have unprecedented & improving tools for audience targeting and segmentation ! The rapid pace of technical change has marketers grasping on how to reach their audience • How should a marketer reach you? • How should a marketer reach your parents? • How should your marketer reach your grandparents? © 2009 Magnet 360, LLC Confidential and Proprietary

Market Trends - Client Situation The Challenge for Marketers Today Do More with Less ! Embrace an ever changing technology landscape ! Barriers Exist Vendors Compete vs. Collaborate ! Limited Value from the Holding Companies ! © 2009 Magnet 360, LLC Confidential and Proprietary

Trends in Marketing Customers Are Funding The Last Mile ! This includes : • Paid Search • Lead Generation • Email • Loyalty ! Other trends : • Geo-targeting • Multi-variate testing © 2009 Magnet 360, LLC Confidential and Proprietary

Guest speaker: Alan Wolk http://alanwolk.com *Check out Alan’s presentation on Slideshare.net/AlanWolk

Assignment #1 “Rethink your current portfolio and put it entirely online.” DUE: Monday, February 23 + Be “Always in beta” + Use at least two of any tool/system you want (flickr, YouTube, Extendr, Tumblr, etc.) + Include name, title, bio, contact info, tags, descriptions, links. (Spell check!) + Customize as you see fit + Have a friend click through it for you

Monday, February 16: “Building blocks: Paid Search + Online ads” 1. Guest speaker: Nina Hale [dot] com 2. Guest speaker: Jennifer Iwanicki (BannerPalooza.com) usefullunacy.typepad.com tim_brunelle@mcad.edu

Thank you. Creative Commons Attribution & Non-Commercial License

MCAD 2009 - Future of Advertising: session #03 recap (Feb 9)

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