Do Brands Need Agencies? | Face Forum, Nov 09


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Following on from the success of our Web 2.0 Women forum earlier this year we thought it was about time we opened up another hot topic for debate. The last Face Forum revolved around the key question ‘Do Brands Need Agencies?’ On the 18th of November we have been joined by friends, experts and clients at the Groucho club to discuss the following topics…

The real-time social web has changed the way we communicate giving us the tools to get and share information at a pace we have not experienced before. This has made the web the richest insight field we have ever had. How can you harness the power of the world wide wave for research, brand planning and brand engagement? What are real-time research and adaptive brand planning? And how can they help your brand stay relevant?

Barely a day goes by without a website, campaign or competition cropping up, promising to harness the collective wisdom of crowds for the benefit of brands. Peperami even ditched Lowe to ask the crowds. But is bottom-up really enough? When did crowdsourcing cease to be a means to an end and become an end in itself? Join us to discuss a hybrid model where crowd-sourcing and co-creation are used as complementary methodologies.

We asked 3000 19 to 25 years old young adults about their consumption habits, media and tech diet. The Forum will be the place where we present our latest Techtribe report, uncovering youth trends that will soon start migrating to other audiences

It was a great night! Here's the presentation that kick-started the discussion

Published in: Business, Technology
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  • an evolving consumer has generated the demand for a new type of media education not matched by jobs they can (education) and want to give more than being just passive respondents huge untapped creative potential
  • beyond consumption and consumerism vs being represented and governed 徹 v er the past fifteen years the rise of the World WideWeb has resulted in remarkable new possibilities and business models reshaping our economy. An entire new generation has come of age with this technology and is committed to using its creativity, collaboration and civic-mindedness to address the challenges facing our country and the world. With the proliferation of issues and not enough resources to address them all, many government leaders recognize the value in public-private partnerships, as well as the opportunities inherent in harnessing a highly motivated and diverse population to address the great challenges facing our nation.There is a new compact on the horizon: government maintains information on a variety of issues and that information should rightly be considered a national asset. Citizens are connected like never-before and have the skill sets and passion to solve problems affecting them locally as well as nationally. Government information and services can be provided to citizens where and when they need it. Citizens will be empowered to become leaders, with government, to spark the innovation that will result in an improved approach to governance. This has never before been possible, and we now have the chance to make this compact a reality. �
  • James Murdoch in his Marketing Society Annual Lecture said ‘Ubiquitous connectivity means fundamentally that the individual becomes the agent of everything...we’ve learnt through experience what difference the new empowered world means for our relationship with customers. This is not a question of scale. It is a different way of existing’. The Internet allows people to freely associate, form groups and publish on a scale never imagined before. Individuals and groups have the power to get their ideas across at a level once enjoyed only by large organizations, corporations and governments. The price of knowledge is falling to zero. Anything from powerful server computer software to how to become a six-sigma black belt can be found on the Internet. A child in India can monitor classes at MIT for free[x]. The quality of this information is getting better all the time.  These three factors contribute to a new economy that some companies are starting to harness. Welcome to the post-consumer era where we all pitch in to build the products & services we use:  50% of all web sites are brought to you by open source software, built and maintained by volunteers[xi].Google, the world 痴 most popular search engine and an economy unto itself, relies primarily on the recommendations of web page authors to drive its search engine[xii].A 2006 Forrester Research study shows almost 40% of Gen Y consumers research products online before making an offline purchase[xiii]. Conversely, the influence of advertising is falling at a similar rate.IBM now makes twice as much money servicing its Linux open source software customers than it does selling intellectual property and patents ($2 billion in 2003)[xiv].BestBuy allows its employees to place bets on which products will sell and which ones won 稚 [ xv]. Among all BestBuy employees, the person who consistently outperforms all other employees in this most critical task is the CEO 痴 secretary. Why? (they studied this) Because she types all the meeting minutes for important meetings. No one else in the company has such wide exposure to what 痴 going on.
  • continuing explosion in real time reviews / comment empowered consumers ingest and remix everything, appropriation and reshaping in own terms fosters collaboration, creativity, innovation and circulation vs closeness, control, Mark Earls author of Herd, says that it is no longer about what your brand does to the consumer but what consumers are doing to and with your brand.
  • top-down messages are seen as unreliable by default vs advertising as provides of role models and advice less effective mad men image: where advertising lies or 60’ad campaign image Consumers have replaced trust in advertising with trust in individuals: in particular, friends, family, and colleagues. Turning to communities and away from mass media, consumers are increasingly making traditional advertising more irrelevant. They have learned to block the ads they don 稚 want, and gate-keeping is becoming more sophisticated and widespread: according to Forrester Research DVR ownership in North America, which features ad-skipping, will grow from 19% of households in 2006 to 55% in 2011. More than half of UK consumers using the Internet at home utilize spam and popup blockers to filter unwanted messages from their online experiences, and countries like the Netherlands, France, and Germany are not far behind.
  • the ad system built on scarcity of channels. now not only trust in ad has fallen but also its structural capacity of generating influence (reach) Different ways of existing means there is more fragmentation: which in turn is driving more complexity. The number of media channels available to marketers, agencies, and consumers has exploded. Proliferation of choice offers marketers new opportunities, such as social networks, mobile, and branded entertainment. Social media, in which consumers become publishers and media outlets drives media buyers crazy; there are more than 59 million videos in YouTube today, and they can 稚 cut deals with every blogger.
  • vs one size fits all personalization and diversification led to fragmentation and niche culture, niche culture requires tailored approach niche communities map image
  • personalization, diversification means also that system have to be flexible and adaptive to incorporate the users input, that’s why they stay in beta vs monolitic brands that’s why tv series had a great success on the web, the series mechanics is closer to the web than the film mechanics. lost is closer to twitter than ‘pride and prejudice’ is No one knows what the world will look like in 10 years all we can be certain about is that it will be very different from today. We are only just beginning to understand the impact that social media will have on our industry. For this reason successful companies will need to adopt a culture of innovation that will enable them to quickly develop and trial products and new business models and see what works. You should identify those members of your team that are future looking and create work streams and give them clear KPIs that focus on innovation for the agency.
  • but fragmentation also mean that new and only possible center point is now “me” The world is built around me and i’m in control of it. I want to be able to pull and not to be pushed, unless i decide what should be pushed at me almost all consumers own a PC and mobile phone, and they spend almost half of their media time with interactive channels. Use of RSS and podcasts has increased to 10% and 14%, respectively, from virtually nothing in 2003.
  • vs asynchronous distance getting information that relevant to who I am, where I am and what I’m up to sharing information with the right people, at the right time, in the right way
  • and as the numbers of reviews, comments, verdicts grows, their influence will increase as consumer are better equipped to filter internet noise and turn it into personal wisdom (social search)
  • extended networks and immediacy generate the need for an ambient model this ambient model is reshaping not only the way we relate to our friends and connections but to the media, the brands and the content we interact with online vs campaigning, on/off relationships based on the tv programming paradigm Consumers want to be more involved with the brands and products they consume: this applies also to the way they are communicated to them through advertising. Doritos is the most famous example in the UK whereby consumers were invited via a competition to create the next TV campaign More recently Unilever 痴 Peperami have dropped Lowe to Crowdsource their next ad campaign with consumers at . Noam Buchalter marketing manager at Peperami says: 展 e believe Peperami is a brand that deserves radical creative solutions and are confident taking our brief out to thousands rather than a small team of 田 r eatives � will provide us with the best possible idea and take our advertising to the next level. �
  • location specific reviews / comment through mobile web
  • when we speak to marketing and brand managers, 70% of the times the conversation ends up with: “you know this is very new, the organization needs to adapt, it takes time...” well the problem is, this is not new and time’s up. the world is different and people are behaving differently so they expect you to do the same, not to come up with excuses for not changing... quick run through as it’s interesting to talk about a number of massive and evident changes/trends the industry is not responding to yet
  • pursuits that are disconnected from the practical concerns of everyday life
  • creatives know better than consumers
  • the main challenge we face in the industry is letting consumers voice their opinion and having this opinion taken into account in the creative process
  • responds to evolved consumer consumers respond to ideas generated by someone else. brought in only after most of the process has been completed img: focus group
  • on/off relationships point in response to continuous relationships
  • integrated or 360 is still an excuse to sell campaigns ideas as brand ideas so that they can produce a TV commercial and shoe horn other channels in afterwards.
  • panopticon image Mark Earls author of Herd, says that it is no longer about what your brand does to the consumer but what consumers are doing to and with your brand.
  • is social media: research planning brand innovation customer care...
  • if it doesn’t come from us we are never going to use it and quote the source. we’d rather not use it at all or reinvent it exactly the opposite of the web culture, all built around the idea of sharing and efficiency: no need to recreate if it’s there - creative commons Not Invented Here ( NIH ) is a term used to describe persistent social , corporate or institutional culture that avoids using or buying already existing products, research or knowledge because of its different origins. It is normally used in a pejorative sense.As a social phenomenon, "Not Invented Here" syndrome is manifested as an unwillingness to adopt an idea or product because it originates from another culture, a form of nationalism . which also means reinventing the wheel
  • IMG Thai Pic
  • -social media makes this arrangement not possible any longer because has made consumers visible img: matchless suite
  • -agencies as gatekeepers between brands and consumers -agencies are keeping brands hostage and brands are happy to be hostages as they both enjoy the comfort zone and this unity helps them keeping consumers at a distance. -social media makes this arrangement not possible any longer because has made the consumers visible and it’s not a question of scale, but a different way of existing
  • cartel of publishers, producers, media (tv and radio) youths and rock and rock n roll are about to come
  • - social media as the platform where all media converge and the glue between brand and consumers: 1) bring insights out, 2) takes brand experiences in, 3) test brand experiences before sending them out to the other channels, 4) is the place where all conversation happen around the messages in all the other channels a place for INSIGHTS, IDEA GENERATION, TESTING & VALIDATION, DISTRIBUTION, WORD OF MOUTH & ADVOCACY, PROMOTION
  • img first slide intro to qualitative research
  • getting and staying close to consumers rather than observing them adding anthropology, pop culture, consumerism, sociology, localization and influence dynamics. ethnographic approach Social media can help us immerse ourselves and collaborate with consumers
  • it’s about tapping into the richest insight field we ever had social media immersion, insights and ideas come from everywhere, 24/7: turning quantity into quality, pattern recognition The arrival of research 3.0: new social media tools and web 2.0 are helping brands to research consumers in more exciting and different ways through mass collaboration and intimate co-creation. Combined with new ways of accumulating robust qualitative data which we can make sense of from the web, then research has an exciting future ahead of it. It will herald a new era � Research 3.0.
  • Consumers will be treated in a fundamentally different way : They will be given more responsibility and will be more involved throughout the brand marketing process. Co-creating with consumers as direct and active equals to deliver a range of marketing outputs will be part of its core philosophy.
  • it’s about using the web as the largest creative department creative agencies without creatives
  • a progressive story not quarterly campaigns New social media tools will help brands to be on 24/7: this is part of what we call at Face 鍍 h e socialisation of brands � where campaign and channel marketing gives way to 田 o ntinuous brand engagement marketing � . The environment the brand lives and breathes in is always on and is always changing so brands need to be listening to and observing their consumers not just in communities but also on the web as well as involving them on a continuous basis in everything they do.
  • this is what happens to brands trying to push their messages into the communities without being part of those communities Consumer communities will reign: The focus on the 30 second TV spot will give way to the content and conversations that are being generated by consumers and between consumers around the brand. This will in turn produce different segmentation models where brands see consumers not just as potential customers who want to buy something from them but as people who want to have a relationship with them.
  • brand story, not message placement Centered on the web, yet branching out over mobile, mail, flash mobs, scavenger hunts, casual games, user generated content, collaborative narratives, streaming video and moreOver 10M unique participants in 75 countries made 展 h y So Serious? � a new benchmark for integrated campaigns. The Dark Knight was the most successful movie of 2008 and 2nd highest grossing film of all time.
  • STOP PUTTING THE EXACT SAME STORY EVERYWHERE. PEOPLE LIKE STORIES WITH DEPTH AND COMPLEXITY. so you need 1000 heads to generate a 1000 messages: crowdsourcing, co-creation, word of mouth
  • brands, like participative web apps, should be made of building block in order to be able to respond quickly, preserve integrity and coherence but being tailored vs monolithic branding. agility flexibility, iteration ▪ Individuals and interactions over processes and tools ▪ Working software over comprehensive documentation ▪ Customer collaboration over contract negotiation ▪ Responding to change over following a plan ▪ Customer satisfaction by rapid, continuous delivery of useful software ▪ Working software is delivered frequently (weeks rather than months) ▪ Working software is the principal measure of progress ▪ Even late changes in requirements are welcomed (this does not mean code & run. Instead removing an existing feature or moving a deadline forward to accommodate late/unplanned feature requests [ not in citation given ] ) ▪ Close, daily cooperation between business people and developers ▪ Face-to-face conversation is the best form of communication (Co-location) ▪ Projects are built around motivated individuals, who should be trusted ▪ Continuous attention to technical excellence and good design ▪ Simplicity ▪ Self-organizing teams ▪ Regular adaptation to changing circumstances the software industry was the first one to react to these changes. they responded creating a new process for designing software called agile development.At the end of the day softwares are brands, and the principles behind agile development are perfectly right for what brand need to stay afloat in a conversational media environment: agile branding.agile developementno specs movement
  • all this means going from this model, to this...
  • reversing the traditional model - consumers are at the core, not brands - social media, not agencies, is the gatekeeper between consumers and brands - agencies become communities of consumers
  • Fast Company has even predicted "Ad agency executive" to be among six jobs that won't exist in 2016
  • good example: famous brand dumping its advertising agency to go pure crowd-sourcing
  • some of these statements is true, some isn’t but the main point is that bottom up is not enough
  • Crowdsourcing is the act of a company taking a function once performed by employees and outsourcing it to a large community of people in the form of an open brief. This is primarily undertaken by individuals on-line who compete against each, with the winning idea being voted for by the community or by the company (more like a competition).
  • -It is cost effective as companies pay by results -The company can tap a wider range of talent than might be present in its own organization -By listening to the crowd, companies gain consumer insight -The community may feel a stronger relationship with the company which is the result of an earned sense of ownership through contribution & collaboration
  • what works is an hybrid model that includes individual thinking and group brainstorming
  • So we add design and top down control to get where we want to go.
The systems we keep will be hybrid creations. They will have a strong rootstock of peer-to-peer generation, grafted below highly refined strains of controlling functions.  Sturdy, robust foundations of user-made content and crowd-sourced innovation will feed very small slivers of leadership agility. Pure plays of 100% smart mobs or 100% smart elites will be rare.
  • This can take place on-line in communities or offline in workshops. The aim of co-creation is to develop ideas together with consumers that meet their needs and fulfill business requirements of the company.
  • -Produces more robust products and ideas that consumers want to buy and companies can produce -Faster way of generating new & disruptive ideas and solving problems -Immerses companies in the lives, aspirations and needs of their consumers -Builds strong and lasting relationships between companies and consumers
  • you need to bring top-down thinking as well, but still keeping consumers at the core of what you do. and this is what co-creation is about top down thinking, research, consumer at the center, engage the crowds
  • a mix of old and new model, with social media at its core now explain how to use co-creation and crowdsourcing, when, with what results
  • Answer to title’s question…
  • Do Brands Need Agencies? | Face Forum, Nov 09

    1. do brands really need agencies? face forum, november 2009, london
    2. setting some of the context with a few edited highlights from our 2009 Tech Tribe report into attitudes and behaviour of 18-25 year olds
    3. 18-25 important not because young adults are representative today… but because they are early adopters and do represent the future…
    4. some key themes from our tech tribe 2009 report online is not just another channel – it represents the world that young people live in just as we have started to get to grips with the ‘web’ so it changes from being a place that people go to a place that is all around us all of the time contribution to social media still growing but genuine content creation remains pretty stable Influence of inner (my friends) and rapid changes in attitudes outer circle (the internet) on and behaviour due to purchase continues to grow recession
    5. …‘online’ starting to catch up with ‘offline’ across all types of content consumption
    6. …reading newspaper & magazines is first to tip from ‘offline’ to digital…. what’s next? 76% watched TV spending more time reading newspapers & online (up from 45% magazines digitally in 2008) than on paper spending an average of 58% downloaded films to 30 minutes a day watch online (up from watching TV online 38% in 2008)
    7. …and a new generation that will be always on – they don’t go to the web, the web comes to them 58%* have used up from 50% in 2008 (41% in 2006) mobile to access the internet 25% use mobile internet up from 5% in 2008 every day *and handset functionality & cost are the main barriers at the moment
    8. …so far mobile internet use mirrors some aspects of ‘traditional’ online behaviour 67%* social networking 66% email 60% finding places 57% information * of those who have used mobile internet at all
    9. …but there are some interesting new applications on the horizon Skype / IM (50% used / intend next 12 months) Other Apps (45%) Video-Messaging (40%) Geo-Tagging (40%) Twitter (30%) Augmented Reality (20%) * of those who have used mobile internet at all
    10. …contribution to social media still growing but the number of true content creators remains relatively stable
    11. …around 4 in 5 are actively engaged in some kind of social media
    12. …around 3 in 5 will actively read other people’s blogs, forum posts and reviews
    13. …around 3 in 10 will contribute to the internet by commenting, adding to forums, posting ratings or reviews
    14. …around 2 in 10 will genuinely build the internet through blogs, their own websites & uploading their own videos this has edged upwards from around 15% in 2007 but it is still a case of a minority (albeit substantial) talking to the majority
    15. …but when it comes to influence on purchase, young people are heavily influenced by the conversations going on in their inner circle 93% are influenced by what friends tell them
    16. …but the outer circle is becoming increasingly influential too 85% are influenced by what they read or hear generally online (up from 70% in 2008)
    17. …twitter is not being used by everybody (contrary to its media status only around 2 in 10 young people have used it) these young people have used twitter this year
    18. …compared to the (continuing for now) primacy of facebook this person isn’t even on facebook!
    19. …but social media behaviour doesn’t stand still 66% have made their social network more private 55% have cut back on their friends /become more picky about who they accept as friends 32% are using social networks less
    20. …behaviour change fast – how quickly can brands respond? 80% say the recession has changed the way they think about the future 67% paying special attention to promotions and special offers 56% staying in with friends more rather than going out 52% taking food they have made at home to work, school or college
    21. attitudes change quickly, how quickly can we respond? 70% agree that quality is more important than quantity in today’s climate 54% started to only buy things I really need now backlash against 15 minutes of fame culture – only 12% agree that fame is desirable
    22. what this means in 2010 and beyond?
    23. evolved consumers huge untapped creative potential
    24. empowered consumer quick, easy, cheap ways for voicing your opinion, super connected, always on
    25. participatory culture ...way beyond media and consumption
    26. post-consumer era “this is not a question of scale. It is a different way of existing” J.Murdoch
    27. omnivorous remix/review “it is no longer about what your brand does to the consumer but what consumers are doing to and with your brand” Mark Earls
    28. “where the truth lies”
    29. not only trust in ads has fallen but also its structural capacity of generating influence (reach) media clutter
    30. sea of niches personalization, diversification, fragmentation, niches culture, tailored approach
    31. always in beta personalization and diversification also mean that systems are getting flexible and adaptive to incorporate the users input
    32. around me: pull NOT push fragmentation also means the new and only potential center is now “me”
    33. rise of the real-time collective mind getting information that’s relevant to who I am, where I am and what I’m up to sharing information with the right people, at the right time, in the right way
    34. It’s not information overload. It’s filter failure (c. shirky) But filters are getting better
    35. ambient model continuous togetherness
    36. and now these conversations are moving offline
    37. stop calling it new media and digital it’s here and everywhere
    38. how is marketing [still] responding to all this?
    39. ivory tower mentality
    40. consumers don’t really know what they want
    41. still dreaming of raising the perfect consumer
    42. consumers as passive respondents
    43. campaigns consumers engage with brands every day why should brands engage with them quarterly?
    44. one size fits all supposedly consistency... actually, blindness to organic diversity
    45. command & control
    46. monolithic brands
    47. planning in silos
    48. not invented here syndrome
    49. asynchronous mode
    50. the world has changed marketing, branding and the “agency model” haven’t changed that much...
    51. in s ig ht ra d io agencies in t pr brand agency brand tv insight new exp on lin e channels new consumers
    52. marketing : social media = tin pan alley : rocknroll
    53. how do we move away from this model?
    54. social media is NOT another channel is the platform where all media converge and the glue between brands and consumers +insights +idea generation +testing & validation +distribution +wom & advocacy
    55. brand don’t own the space anymore, consumers own it strategy should be built around them not around the brand
    56. It’s just people not alien “consumers”
    57. stop thinking of “the others”
    58. it’s all about immersion
    59. tapping into the richest insight field, free, spontaneous, always up-to-date
    60. consumers as partners
    61. the web as world’s largest creative department
    62. continuous engagement, not campaigns
    63. conversations and relationships, NOT messages
    64. cross-media experience-driven not channel-driven
    65. one size doesn’t fit all 1000 heads for 1000 msgs
    66. agile branding responding to change over following a plan [adaptive brand planning]
    67. old vs new model consumers people observation immersion respondents partners messages relationships campaigns story one size niche tailored channels experiences silos collaboration monolithic adaptive
    68. From this… in s ig ht ra d io agencies in t pr brand agency brand tv insight exp on lin e channels consumers
    69. To this… ra di social media we b o ide as ts igh people ins tv brand brand agency print id ea s ts gh si in p ex n ie facilitate channels t mb a brands
    70. Fast Company predicts "Ad agency executive" to be among six jobs that won't exist in 2016
    71. but is it really all about bottom-up and crowd engagement?
    72. some reactions... “only works with a simple and well-defined brand” “I don’t want 1000 ideas, I want one really good one” “you won’t get a collaborative process” “you need to have arguments” “crowd-sourcing doesn’t lend itself to the big idea” “no access to strategy or insight” “all you get is a bunch of one-off ads”
    73. let’s take a step back
    74. what you get +bottom-up richness +global crowd +diversified crowd +wider range of talent +cost-effective +lots of ideas +rich insight +consumer-brand relationship +peer-rating +buzz
    75. what’s missing -it’s many-to-one -not very targeted -it’s bottom-up but still vertical -access to insight and strategy (confidentiality) -collaboration -editing, building on, refining -funneling process -face-to-face -strategic thinking
    76. bottom up is not enough “the bottom-up mind will take us much further, but will never take us to the end goal” (kevin kelly) Crowd-sourcing needs to be part of a bigger process
    77. let’s take a look at another approach
    78. co-creation Is the act of company stakeholders collaborating directly with selected (usually smaller) groups of consumers to work on a specific brief. Is about leveraging consumers’ creativity without preempting the results of the process Can take place on-line in communities or/and offline in workshops
    79. what you get +few-to-few-to-one +more targeted +bottom-up and top-down +collaboration, editing, building on +refinement and funneling +online & face-to-face +access to insight and strategy (confidentiality) +strategic thinking +faster process +immersive +robust and tailored concepts
    80. what’s missing [compared to crowdsourcing] -smaller crowd -local -less diversification -fewer ideas -more expensive than crowd-sourcing
    81. the case for a hybrid model bottom-up + top-down crowds + individuals group thinking + individual thinking
    82. the hybrid model consumer crowd-sourcing co-creation immersion listen plan engage measure download workshop
    83. bottom-up consumer crowd-sourcing co-creation immersion listen plan engage measure download workshop top down
    84. the hybrid model consumer crowd-sourcing co-creation immersion listen plan engage measure download workshop No longer a linear process but a loop
    85. a new habitat requires a new species (RT @samreid420)
    86. in other words, short answer is: maybe
    87. or not