Derek robson how you can digitilize your agency

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Derek robson how you can digitilize your agency

  1. AGENCY EVOLUTION17 THINGS THAT I HAVE LEARNEDABOUT TRYING TO EVOLVE AN AGENCY April, 2010
  2. Who am I? Goodby, O&M Direct Ogilvy & Mather BBH Silverstein & Partners Account Planner + Account Deputy Manager Planning Account Director Managing + + Planner Partner Account Business Planner Director + Managing Director
  3. What was I joining?
  4. The Agencydilemma:Rightvs.Interesting
  5. The agency dilemma Q: “If you had to choose, would you rather be interesting or right?” —Malcolm Gladwell, GQ Magazine
  6. The agency dilemma A: “If I were President of the United States, I would rather be right than interesting. If I were a CEO of a company, I would rather be right than interesting. But I am a journalist—what journalist would rather be right than interesting?” —Malcolm Gladwell, GQ Magazine
  7. The agency dilemma Right + Interesting
  8. What’s themotivationto change?
  9. The motivation for change for us “ ” Fear.
  10. The importanceof the simpleAgency objective
  11. Our #1 Objective for the Agency: “RELEVANCE. ” —Rich Silverstein
  12. Treating the agencylike a Client(What’s the agency problem?)
  13. Auditing the agency Consultants Press EXTERNAL GSP Industry Headhunters INTERNAL GSP
  14. External perceptions of the agency (the industry)We were number one: “The shop that makes the best hires” “The shop with the best reel” “Best at Consumer Insight” “Best at Strategic Planning” Source: Adweek, Industry-on-Industry Survey, 2005
  15. When a good adcan be bad for you...
  16. External perceptions of the agency (the industry)But we lagged behind in: “Most creative” “The shop with the best reputation” Source: Adweek, Industry-on-Industry Survey, 2005
  17. External perceptions of the agency (the industry)We didn’t even appear on the attributesthat defined the future: “Best at Branded Entertainment” “Best at Branded Integrated Solutions” “Most Media Neutral” Source: Adweek, Industry-on-Industry Survey, 2005
  18. External perceptions of the agency (the pitch consultants) “I don’t associate GSP with integration. ” —Russel Wohlwerth, Select Resources “Is there an ability to tap into interactive and the nontraditional?” —Judy Neer, Pile & Co
  19. External perceptions of the agency (the headhunters) “It feels very ad driven. ” —Gary Stolkin, Stolkin + Partners “I am not sure people know that you’re fully engaged in interactive. ” —Rachel Law, Kendall Tarrant
  20. External perceptions laggedbehind agency reality GSP Historical Head Count 11 5 4 15 2 9 4 5 2002 2003 2004 2005 Interactive Creative Interactive ProductionWe were the 2004 One Show Interactive Agency of the Year Source: Goodby, Silverstein & Partners
  21. The importanceof managingthe agency brand
  22. External perceptions of the agency (the advertising press) “Personally, I feel under-informed about the agency’s work. ” —Ellie Parpis, Creative Editor, Adweek “Crispin have got two people who just work the phones. That’s all they do. ” —Stuart Elliott, New York Times
  23. Managing the agency’s brand We hired a PR agency to help us
  24. Why agency visionis important(and what happens when you don’t have one)
  25. Internal perceptions of the agency“ We’ve got Crispin envy. ” Source: Goodby, Silverstein & Partners Agency Interviews
  26. Internal perceptions of the agency“ ” Our biggest single issue is lack of a clearly articulated identity. Source: Goodby, Silverstein & Partners Agency Interviews
  27. The vision thing The lack of vision led to questions about the leadership of the agency
  28. Does youragency work?
  29. A quick formula for efficiency Ideas Generated Ideas Generated % Hit Rate & Produced & Not ProducedCreative/Client X X XX% TV Print OOH Radio Web Other
  30. A quick formula for efficiency Ideas Generated Ideas Generated % Hit Rate & Produced & Not ProducedCreative/Client X X XX% TV Print OOH Radio Web Other Who’s performing? Who’s not performing?
  31. Agency productivity, 2005 Ideas Generated Ideas Generated % Hit Rate & Produced & Not Produced 2005 804 1,413 37%Low strike rate clients with correlated problem relationships
  32. How we worked “There are too many creative teams on assignments. The result is no ownership. Everyone thinks someone else will crack it. ” Source: Internal Agency Interviews
  33. How we worked “We’re a big agency with small agency processes. We need to address this because we’re starting to kill people. ” Source: Internal Agency Interviews
  34. How we worked “ We work dumb. ” Source: Internal Agency Interviews
  35. Managing our most expensive resourceWe committed to full-time, high-level resource management of the creative department.
  36. Do your collarsand cuffsmatch?
  37. Our workload(percentage of GSP projects) 82% May 2005 18% Web/Interactive Traditional Source: Goodby, Silverstein & Partners
  38. Our output was evolving(percentage of GSP projects) 82% 58% 42% 18% May 2005 May 2006 Web/Interactive Traditional Source: Goodby, Silverstein & Partners
  39. So we needed to changeour creative resources(percentage of head count) 37% The Creative Department May 2006 49% 14% Traditional Traditional + Interactive Interactive Source: Goodby, Silverstein & Partners
  40. The shift in our output was dramatic Web = 29% Print = 23% TV = 11% 58% Alt media = 11% 50% 42% 50% OOH = 11% P Of Purchase = 8% Radio = 5% Brochures = 2% May 2005 October 2006 Web/Interactive Traditional Source: Goodby, Silverstein & Partners
  41. More flexibility in ourcreative resourceswas our goal 28% The Creative Department October 2006 41% 31% Traditional Traditional + Interactive Interactive Source: Goodby, Silverstein & Partners
  42. Why do allAgency creativedepartmentslook the same?
  43. We were recycling creative resources TBWA Chiat Day Crispin Porter + Bogusky Goodby, Fallon Silverstein & Wieden + Kennedy Partners
  44. Different output = different resources The Sci-Fi Channel Sweden YouTube Star, Music Video The Rappin’ Jelly Donut Production Punk Rock Zine Interactive Agencies TBWA Chiat Day Crispin Porter + Bogusky with Dangerous-sounding Names Sketch Comedy Troupe (“Killing My Lobster”) Goodby, Fallon Silverstein & Wieden + Kennedy Partners Best Buy Film School UCLA Media Lab Design Firms Planning at Hal Riney & Partners Malcontents in London, São Paolo, Stockholm and Berkeley
  45. 10Forcingchange wherechange can be seen
  46. A simple approach to increasingdigital competence Traditional Interactive Art Director Art Director From two distinct creative “camps” + Traditional + Interactive Copywriter Copywriter Source: Goodby, Silverstein & Partners
  47. A simple approach to increasingdigital competence Traditional Interactive Art Director Art Director From two distinct creative “camps” + Traditional + Interactive Copywriter Copywriter To a consciously mixed Traditional ADs and CWs + creative resource Interactive ADs and CWs Source: Goodby, Silverstein & Partners
  48. You haveto be badto be good
  49. In the words of Jeff Goodby... “It’s going to get worse, before it gets better.” —Jeff Goodby
  50. In defense of failure “Making mistakes is a great American freedom. The goal shouldn’t be to eliminate failure; it should be to build a system resilient enough to withstand it. ” Source: Time Magazine, March 22nd 2010
  51. Goodby was right—It got worsebefore it got better 2005 2006 2007 20081. Crispin 1. Crispin (695) 1. TBWAChiat (565) 1. BBDO NY (845)2. TBWAParis 2. TBWAParis 2. Crispin 2. TAG SF3. GSP (300) 3. AMV BBDO 3. Saatchi + Saatchi, NY 3. McCann Erickson4. W+K London 4. DDB London 4. R/GA 4. Fallon London5. TBWAChiat 5. DDB Chicago 5. DDB London 5. Saatchi NY6. Taxi 6. JWT London 6. DDB Chicago 6. TBWAChiatDay NY7. DDB London 7. Dentsu Tokyo 7. BBDO NY 7. Crispin8. Fallon/NY 8. Forsman +Borden 8. BBH NY 8. GSP (260)9. Almap/BBDO 9. Taxi 9. Leo Burnett Chicago 9. Saatchi Singapore10. W+K/Portland 10. GSP (155) 10. Fallon London 10. DDB London11. DDB Brasil 11. Fallon London 11. Saatchi + Saatchi, Singapore 11. TBWA Paris12. Dentsu/Tokyo 12. W+K London 12. W+K Portland 12. W+K London13. Springer + Jacoby 13. Saatchi + Saatchi, NY 13. TBWAParis 13. Saatchi + Saatchi, NY14. Arnold 14. Nordpol Hamburg 14. W+K Amsterdam 14. Nordpol Hamburg15. The Jupiter Drawing Room 15. Leo Burnett London 15. Fallon Minneapolis 15. Leo Burnett London16. 180 Amsterdam 16. Lowe Hunt Sydney 16. GSP (115) 16. Lowe Hunt Sydney Source: Creativity Magazine, top 20 creative agencies at the awards shows
  52. Two headsare betterthan one
  53. A more holistic approach todeveloping strategy... Account Media Planning Planning Consumer Brand Media Consumer Insight Insight Insight Insight Message Content Channels How can the message and channel work hardest for each other?
  54. ...driven by a focus on ideas Account Message Media Channels Content Planning Planning People engage with ideas, not channels. Ideas drive channel behavior.
  55. Change the way we create strategy Do what Bernbach did by combining Copywriters and Art Directors… we could implement with Account Planning and Media Planning
  56. One department called “strategy” Brand Media Strategist Strategist Focused on how the message and channel can work hardest for each other
  57. Yes,yes itreally isall aboutthe work
  58. How fastshould wechangean agency?
  59. Speed of change“Creative firms of all kinds (including ours) know that they must evolve at LEAST as fast as the world is changing around them. ” —Tom Kelley, General Manager, IDEO
  60. Are you ready for a change in the agencylandscape?
  61. Increasing industry convergence Traditional ad agencies with Integrated “Larger” digital Digital “bolt on” digital ad agencies agencies production shops (e.g., DDB, Euro) (e.g. GSP, CPB) (e.g. R/GA, (e.g. Big Razorfish, Spaceship, AKQA) Firstborn)
  62. A looming turf war Traditional ad agencies with Integrated “Larger” digital Digital “bolt on” digital ad agencies agencies production shops (e.g., DDB, Euro) (e.g. GSP, CPB) (e.g. R/GA, (e.g. Big Razorfish, Spaceship, AKQA) Firstborn) Implications for talent retention, organic growth and new business
  63. Creative output alonewill not be enough to succeed Top four most important elements for an ad agency 1. Understand my market 2. Creative 3. Understand company direction 4. Strategy and thinking Source: Reardon Smith Whittaker survey of 184 key marketing decision makers, October 2008 Heidrick & Struggles survey of 111 senior marketing executives at firms with $1B+ in annual revenues, December 2008
  64. Creative output alonewill not be enough to succeed Top four most important Top four most important % Very elements for an ad agency elements of digital Satisfied 1. Understand my market 1. ROI 18% 2. Creative 2. Analyses of Web behavior 13% 3. Understand company direction 3. Search 19% 4. Strategy and thinking 4. CRM 17% Source: Reardon Smith Whittaker survey of 184 key marketing decision makers, October 2008 Heidrick & Struggles survey of 111 senior marketing executives at firms with $1B+ in annual revenues, December 2008
  65. Creative output alonewill not be enough to succeed Top four most important Top four most important % Very elements for an ad agency elements of digital Satisfied 1. Understand my market 1. ROI 18% 2. Creative 2. Analyses of Web behavior 13% 3. Understand company direction 3. Search 19% 4. Strategy and thinking 4. CRM 17% A need for fluency from “the work” to how the work works; the “what” to the “why” Source: Reardon Smith Whittaker survey of 184 key marketing decision makers, October 2008 Heidrick & Struggles survey of 111 senior marketing executives at firms with $1B+ in annual revenues, December 2008
  66. One final observation The Agencies of the future may not be the Agencies that have dominated the past
  67. Interactivescaleabilityand otheroxymorons
  68. Interactive is very labor intensive More More interactive = Interactive work staff
  69. Q: How doyou get big withoutgetting bad?
  70. Setting the right metrics for the agency An Annual GSP Our performance Client Relationship at the major Survey Creative Award Shows To be the best advertising Agency in the world, as judged by our peers, based on the quality and effectiveness of our work Our performance An Annual Agency at Effectiveness Awards Staff Survey (EFFIES)
  71. Does this theory actually work?
  72. The changes helped make us more productive Ideas Generated Ideas Generated % Hit Rate & Produced & Not Produced 2005 804 1,413 37% 2006 1272 1,214 51% Source: Goodby, Silverstein & Partners
  73. Historical Creative Performance 2005 2006 2007 2008 20091. Crispin 1. Crispin (695) 1. TBWAChiat (565) 1. BBDO NY (845) 1. GSP (680)2. TBWAParis 2. TBWAParis 2. Crispin 2. TAG SF 2. Crispin3. GSP (300) 3. AMV BBDO 3. Saatchi + Saatchi, NY 3. McCann Erickson 3. Saatchi + Saatchi NY4. W+K London 4. DDB London 4. R/GA 4. Fallon London 4. W+K Portland5. TBWAChiat 5. DDB Chicago 5. DDB London 5. Saatchi NY 5. Droga56. Taxi 6. JWT London 6. DDB Chicago 6. TBWAChiatDay NY 6. BBDO NY7. DDB London 7. Dentsu Tokyo 7. BBDO NY 7. Crispin 7. Dentsu Tokyo8. Fallon/NY 8. Forsman +Borden 8. BBH NY 8. GSP (260) 8. TBWA NY9. Almap/BBDO 9. Taxi 9. Leo Burnett Chicago 9. Saatchi Singapore 9. CumminsNitro10. W+K/Portland 10. GSP (155) 10. Fallon London 10. DDB London 10. Leo Burnett Lisbon11. DDB Brasil 11. Fallon London 11. Saatchi + Saatchi, Singapore 11. TBWA Paris12. Dentsu/Tokyo 12. W+K London 12. W+K Portland 12. W+K London13. Springer + Jacoby 13. Saatchi + Saatchi, NY 13. TBWAParis 13. Saatchi + Saatchi, NY14. Arnold 14. Nordpol Hamburg 14. W+K Amsterdam 14. Nordpol Hamburg15. The Jupiter Drawing Room 15. Leo Burnett London 15. Fallon Minneapolis 15. Leo Burnett London16. 180 Amsterdam 16. Lowe Hunt Sydney 16. GSP (115) 16. Lowe Hunt Sydney Source: Creativity Magazine, top 20 creative agencies at the awards shows
  74. AGENCY WINNERS 2009 1. Goodby, Silverstein & Partners (680) 2. Crispin Porter + Bogusky (365) 2009 3. Saatchi & Saatchi NY (345) 4. Wieden + Kennedy Portland (320)CREATIVE 5. Droga5 (295) AWARDS 6. BBDO NY (205) 7. Dentsu Tokyo (200) 8. TBWA Chiat Day NY (200) 9. CumminsNitro Brisbane (200) 10. Leo Burnett Lisbon (200) Source: Creativity Magazine, September 28, 2009
  75. AGENCY NETWORK WINNERS 2009 1. BBDO (1375) 2. DDB (985) 2009 3. Leo Burnett (965) 4. Saatchi & Saatchi (885) CREATIVE 5. TBWA (765) AWARDS 6. Ogilvy (700) 7. JWT (615) 8. Wieden + Kennedy (470) Goodby would have placed seventh in this 9. Y&R (420)ranking, even though it’s a one-office agency 10. Crispin Porter & Bogusky (400) Source: Creativity Magazine, September 28, 2009
  76. We were named the mostawarded agency in the world“The most awarded Agency of 2009 is GSP, a shop that simultaneously was named Cannes’ Digital Agency of the Year and, according to our count, had the most awarded TV spot this season with ‘Rabbit’ for Comcast.“What’s more, the San Francisco–based Omnicom agency didn’t earn this distinction for hitting one home run that won everything—last year’s top winners could chalk up success to standout campaigns like HBO’s ‘Voyeur’ and ‘Halo 3.’ A broad range of award-winning work and strength across media proved fruitful for Goodby, which won for work like the YouTube-quaking ‘Wario Land Shake It!’ for Nintendo, the split-screen ‘There Can Only Be One’ spots for the NBA that inspired spoofs on the cover of Time Magazine and on SNL, the ‘Save the Honey Bees’ campaign for Häagen-Dazs and the virtual haunted ‘Hotel 626’ for Doritos. Goodby also won for the first augmented-reality campaign for a major advertiser, the GE Plug into the Smart Grid Web site, as well as the data-crunching Sprint Now widget.” Source: Creativity Magazine, September 28, 2009
  77. 2009 saw a real cementingof our digital interactive credentialsWe were the Cannes Digital Agency of the Year(with work for seven different clients)We were the One Show Interactive Agency of the Year(with work for six different clients)
  78. And 2009 wasn’t just about creative awards.Media got in on the act too... We were the #2 office in the world at the Festival of Media Awards in Venice We won six (out of a possible 16) awards at the Creative Media Awards in NY for four different clients, including the Grand Prix

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