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AGENCY EVOLUTION
17 THINGS THAT I HAVE LEARNED
ABOUT TRYING TO EVOLVE AN AGENCY




                                   April, 2010
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
What was I joining?
The Agency
dilemma:
Right
vs.
Interesting
The agency dilemma




                 Q:   “If you had to choose,
                       would you rather be
                       interesting or right?”
                          —Malcolm Gladwell, GQ Magazine
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
The agency dilemma




   Right + Interesting
What’s the
motivation
to change?
The motivation for change for us




              “ ”  Fear.
The importance
of the simple
Agency objective
Our #1 Objective for the Agency:
  “RELEVANCE.
            ”
                    —Rich Silverstein
Treating the agency
like a Client
(What’s the
 agency problem?)
Auditing the agency


             Consultants         Press



  EXTERNAL                 GSP
               Industry          Headhunters




  INTERNAL                 GSP
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
When a good ad
can be bad for you...
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
External perceptions of the agency
                                                           (the industry)




We didn’t even appear on the attributes
that defined the future:


         “Best at Branded Entertainment”

         “Best at Branded Integrated Solutions”

         “Most Media Neutral”



                                 Source: Adweek, Industry-on-Industry Survey, 2005
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
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
External perceptions lagged
behind agency reality

                      GSP Historical Head Count                   11



                                           5

                          4                                       15
        2                                  9
        4                 5
       2002             2003              2004                    2005


              Interactive Creative    Interactive Production


We were the 2004 One Show Interactive Agency of the Year

                                                      Source: Goodby, Silverstein & Partners
The importance
of managing
the agency brand
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
Managing the agency’s brand




     We hired a PR agency to help us
Why agency vision
is important
(and what happens when
 you don’t have one)
Internal perceptions of the agency




“     We’ve got Crispin envy.
                                                                   ”
                           Source: Goodby, Silverstein & Partners Agency Interviews
Internal perceptions of the agency




“                                                                  ”
     Our biggest single issue is lack of
       a clearly articulated identity.




                           Source: Goodby, Silverstein & Partners Agency Interviews
The vision thing




     The lack of vision led to questions
     about the leadership of the agency
Does your
agency work?
A quick formula for efficiency


                  Ideas Generated      Ideas Generated          % Hit Rate
                    & Produced          & Not Produced




Creative/Client          X                   X                    XX%




                    TV         Print   OOH        Radio   Web          Other
A quick formula for efficiency


                  Ideas Generated      Ideas Generated          % Hit Rate
                    & Produced          & Not Produced




Creative/Client          X                   X                    XX%




                    TV         Print   OOH        Radio   Web          Other




         Who’s performing? Who’s not performing?
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
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
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
How we worked




     “   We work dumb.
                         ”
                     Source: Internal Agency Interviews
Managing our most expensive resource




We committed to full-time, high-level resource
  management of the creative department.
Do your collars
and cuffs
match?
Our workload
(percentage of GSP projects)




                                      82%
        May 2005
                               18%




   Web/Interactive
   Traditional                       Source: Goodby, Silverstein & Partners
Our output was evolving
(percentage of GSP projects)




                     82%                                58%
                               42%
 18%




         May 2005                    May 2006


   Web/Interactive
   Traditional                       Source: Goodby, Silverstein & Partners
So we needed to change
our creative resources
(percentage of head count)


                                     37%

        The Creative
        Department
        May 2006
                                                  49%
                               14%



   Traditional
   Traditional + Interactive
   Interactive                             Source: Goodby, Silverstein & Partners
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
More flexibility in our
creative resources
was our goal
                                    28%


       The Creative
       Department
       October 2006
                                                    41%
                              31%



  Traditional
  Traditional + Interactive
  Interactive                             Source: Goodby, Silverstein & Partners
Why do all
Agency creative
departments
look the same?
We were recycling creative resources



     TBWA  Chiat  Day                   Crispin Porter + Bogusky




                             Goodby,
      Fallon              Silverstein &             Wieden + Kennedy

                            Partners
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
10
Forcing
change
 where
change
 can be
   seen
A simple approach to increasing
digital competence

                     Traditional      Interactive
                     Art Director     Art Director
 From two distinct
 creative “camps”       +
                     Traditional
                                          +
                                       Interactive
                     Copywriter        Copywriter




                                    Source: Goodby, Silverstein & Partners
A simple approach to increasing
digital 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
You have
to be bad
to be good
In the words of Jeff Goodby...




 “It’s going to get worse,
  before it gets better.”
                     —Jeff Goodby
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
Goodby was right—It got worse
before it got better

             2005                         2006                             2007                               2008
1. Crispin                     1. Crispin (695)               1. TBWAChiat (565)                1. BBDO NY (845)
2. TBWAParis                  2. TBWAParis                  2. Crispin                         2. TAG SF

3. GSP (300)                   3. AMV BBDO                    3. Saatchi + Saatchi, NY           3. McCann Erickson
4. W+K London                  4. DDB London                  4. R/GA                            4. Fallon London
5. TBWAChiat                  5. DDB Chicago                 5. DDB London                      5. Saatchi NY
6. Taxi                        6. JWT London                  6. DDB Chicago                     6. TBWAChiatDay NY
7. DDB London                  7. Dentsu Tokyo                7. BBDO NY                         7. Crispin
8. Fallon/NY                   8. Forsman +Borden             8. BBH NY                          8. GSP (260)
9. Almap/BBDO                  9. Taxi                        9. Leo Burnett Chicago             9. Saatchi Singapore
10. W+K/Portland               10. GSP (155)                  10. Fallon London                  10. DDB London
11. DDB Brasil                 11. Fallon London              11. Saatchi + Saatchi, Singapore   11. TBWA Paris
12. Dentsu/Tokyo               12. W+K London                 12. W+K Portland                   12. W+K London
13. Springer + Jacoby          13. Saatchi + Saatchi, NY      13. TBWAParis                     13. Saatchi + Saatchi, NY
14. Arnold                     14. Nordpol Hamburg            14. W+K Amsterdam                  14. Nordpol Hamburg
15. The Jupiter Drawing Room   15. Leo Burnett London         15. Fallon Minneapolis             15. Leo Burnett London
16. 180 Amsterdam              16. Lowe Hunt Sydney           16. GSP (115)                      16. Lowe Hunt Sydney




                                                           Source: Creativity Magazine, top 20 creative agencies at the awards shows
Two heads
are better
than one
A more holistic approach to
developing 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?
...driven by a focus on ideas




  Account       Message                         Media
                               Channels
                Content
  Planning                                   Planning




        People engage with ideas, not channels.
             Ideas drive channel behavior.
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
One department called “strategy”




                   Brand        Media
                 Strategist   Strategist




      Focused on how the message and channel
          can work hardest for each other
Yes,
yes it
really is
all about
the work
How fast
should we
change
an agency?
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
Are you
 ready for
 a change
     in the
   agency
landscape?
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)
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
Creative output alone
will 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
Creative output alone
will 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
Creative output alone
will 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
One final observation




    The Agencies of the future
   may not be the Agencies that
     have dominated the past
Interactive
scaleability
and other
oxymorons
Interactive is very labor intensive




       More                    More
    interactive      =      Interactive
       work                    staff
Q:
    How do
you get big
   without
getting bad?
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)
Does this theory actually work?
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
Historical Creative Performance


          2005                           2006                      2007                               2008                        2009
1. Crispin                     1. Crispin (695)            1. TBWAChiat (565)                1. BBDO NY (845)            1. GSP (680)
2. TBWAParis                  2. TBWAParis               2. Crispin                         2. TAG SF                   2. Crispin

3. GSP (300)                   3. AMV BBDO                 3. Saatchi + Saatchi, NY           3. McCann Erickson          3. Saatchi + Saatchi NY
4. W+K London                  4. DDB London               4. R/GA                            4. Fallon London            4. W+K Portland
5. TBWAChiat                  5. DDB Chicago              5. DDB London                      5. Saatchi NY               5. Droga5
6. Taxi                        6. JWT London               6. DDB Chicago                     6. TBWAChiatDay NY        6. BBDO NY
7. DDB London                  7. Dentsu Tokyo             7. BBDO NY                         7. Crispin                  7. Dentsu Tokyo
8. Fallon/NY                   8. Forsman +Borden          8. BBH NY                          8. GSP (260)                8. TBWA NY
9. Almap/BBDO                  9. Taxi                     9. Leo Burnett Chicago             9. Saatchi Singapore        9. CumminsNitro
10. W+K/Portland               10. GSP (155)               10. Fallon London                  10. DDB London              10. Leo Burnett Lisbon
11. DDB Brasil                 11. Fallon London           11. Saatchi + Saatchi, Singapore   11. TBWA Paris
12. Dentsu/Tokyo               12. W+K London              12. W+K Portland                   12. W+K London
13. Springer + Jacoby          13. Saatchi + Saatchi, NY   13. TBWAParis                     13. Saatchi + Saatchi, NY
14. Arnold                     14. Nordpol Hamburg         14. W+K Amsterdam                  14. Nordpol Hamburg
15. The Jupiter Drawing Room   15. Leo Burnett London      15. Fallon Minneapolis             15. Leo Burnett London
16. 180 Amsterdam              16. Lowe Hunt Sydney        16. GSP (115)                      16. Lowe Hunt Sydney




                                                                        Source: Creativity Magazine, top 20 creative agencies at the awards shows
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
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
We were named the most
awarded 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
2009 saw a real cementing
of our digital interactive credentials


We 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)
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
Derek robson how you can digitilize your agency

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Derek robson how you can digitilize your agency

  • 1. AGENCY EVOLUTION 17 THINGS THAT I HAVE LEARNED ABOUT 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.
  • 6. The agency dilemma Q: “If you had to choose, would you rather be interesting or right?” —Malcolm Gladwell, GQ Magazine
  • 7. 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
  • 8. The agency dilemma Right + Interesting
  • 10. The motivation for change for us “ ” Fear.
  • 11. The importance of the simple Agency objective
  • 12. Our #1 Objective for the Agency: “RELEVANCE. ” —Rich Silverstein
  • 13. Treating the agency like a Client (What’s the agency problem?)
  • 14. Auditing the agency Consultants Press EXTERNAL GSP Industry Headhunters INTERNAL GSP
  • 15. 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
  • 16. When a good ad can be bad for you...
  • 17.
  • 18. 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
  • 19. External perceptions of the agency (the industry) We didn’t even appear on the attributes that defined the future: “Best at Branded Entertainment” “Best at Branded Integrated Solutions” “Most Media Neutral” Source: Adweek, Industry-on-Industry Survey, 2005
  • 20. 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
  • 21. 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
  • 22. External perceptions lagged behind agency reality GSP Historical Head Count 11 5 4 15 2 9 4 5 2002 2003 2004 2005 Interactive Creative Interactive Production We were the 2004 One Show Interactive Agency of the Year Source: Goodby, Silverstein & Partners
  • 24. 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
  • 25. Managing the agency’s brand We hired a PR agency to help us
  • 26. Why agency vision is important (and what happens when you don’t have one)
  • 27. Internal perceptions of the agency “ We’ve got Crispin envy. ” Source: Goodby, Silverstein & Partners Agency Interviews
  • 28. Internal perceptions of the agency “ ” Our biggest single issue is lack of a clearly articulated identity. Source: Goodby, Silverstein & Partners Agency Interviews
  • 29. The vision thing The lack of vision led to questions about the leadership of the agency
  • 30.
  • 32. A quick formula for efficiency Ideas Generated Ideas Generated % Hit Rate & Produced & Not Produced Creative/Client X X XX% TV Print OOH Radio Web Other
  • 33. A quick formula for efficiency Ideas Generated Ideas Generated % Hit Rate & Produced & Not Produced Creative/Client X X XX% TV Print OOH Radio Web Other Who’s performing? Who’s not performing?
  • 34. 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
  • 35. 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
  • 36. 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
  • 37. How we worked “ We work dumb. ” Source: Internal Agency Interviews
  • 38. Managing our most expensive resource We committed to full-time, high-level resource management of the creative department.
  • 39. Do your collars and cuffs match?
  • 40. Our workload (percentage of GSP projects) 82% May 2005 18% Web/Interactive Traditional Source: Goodby, Silverstein & Partners
  • 41. Our output was evolving (percentage of GSP projects) 82% 58% 42% 18% May 2005 May 2006 Web/Interactive Traditional Source: Goodby, Silverstein & Partners
  • 42. So we needed to change our creative resources (percentage of head count) 37% The Creative Department May 2006 49% 14% Traditional Traditional + Interactive Interactive Source: Goodby, Silverstein & Partners
  • 43. 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
  • 44. More flexibility in our creative resources was our goal 28% The Creative Department October 2006 41% 31% Traditional Traditional + Interactive Interactive Source: Goodby, Silverstein & Partners
  • 45. Why do all Agency creative departments look the same?
  • 46. We were recycling creative resources TBWA Chiat Day Crispin Porter + Bogusky Goodby, Fallon Silverstein & Wieden + Kennedy Partners
  • 47. 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
  • 49. A simple approach to increasing digital competence Traditional Interactive Art Director Art Director From two distinct creative “camps” + Traditional + Interactive Copywriter Copywriter Source: Goodby, Silverstein & Partners
  • 50. A simple approach to increasing digital 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
  • 51. You have to be bad to be good
  • 52. In the words of Jeff Goodby... “It’s going to get worse, before it gets better.” —Jeff Goodby
  • 53. 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
  • 54. Goodby was right—It got worse before it got better 2005 2006 2007 2008 1. Crispin 1. Crispin (695) 1. TBWAChiat (565) 1. BBDO NY (845) 2. TBWAParis 2. TBWAParis 2. Crispin 2. TAG SF 3. GSP (300) 3. AMV BBDO 3. Saatchi + Saatchi, NY 3. McCann Erickson 4. W+K London 4. DDB London 4. R/GA 4. Fallon London 5. TBWAChiat 5. DDB Chicago 5. DDB London 5. Saatchi NY 6. Taxi 6. JWT London 6. DDB Chicago 6. TBWAChiatDay NY 7. DDB London 7. Dentsu Tokyo 7. BBDO NY 7. Crispin 8. Fallon/NY 8. Forsman +Borden 8. BBH NY 8. GSP (260) 9. Almap/BBDO 9. Taxi 9. Leo Burnett Chicago 9. Saatchi Singapore 10. W+K/Portland 10. GSP (155) 10. Fallon London 10. DDB London 11. DDB Brasil 11. Fallon London 11. Saatchi + Saatchi, Singapore 11. TBWA Paris 12. Dentsu/Tokyo 12. W+K London 12. W+K Portland 12. W+K London 13. Springer + Jacoby 13. Saatchi + Saatchi, NY 13. TBWAParis 13. Saatchi + Saatchi, NY 14. Arnold 14. Nordpol Hamburg 14. W+K Amsterdam 14. Nordpol Hamburg 15. The Jupiter Drawing Room 15. Leo Burnett London 15. Fallon Minneapolis 15. Leo Burnett London 16. 180 Amsterdam 16. Lowe Hunt Sydney 16. GSP (115) 16. Lowe Hunt Sydney Source: Creativity Magazine, top 20 creative agencies at the awards shows
  • 56. A more holistic approach to developing 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?
  • 57. ...driven by a focus on ideas Account Message Media Channels Content Planning Planning People engage with ideas, not channels. Ideas drive channel behavior.
  • 58. 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
  • 59. One department called “strategy” Brand Media Strategist Strategist Focused on how the message and channel can work hardest for each other
  • 60. Yes, yes it really is all about the work
  • 61.
  • 63. 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
  • 64. Are you ready for a change in the agency landscape?
  • 65. 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)
  • 66. 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
  • 67. Creative output alone will 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
  • 68. Creative output alone will 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
  • 69. Creative output alone will 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
  • 70. One final observation The Agencies of the future may not be the Agencies that have dominated the past
  • 72. Interactive is very labor intensive More More interactive = Interactive work staff
  • 73. Q: How do you get big without getting bad?
  • 74. 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)
  • 75. Does this theory actually work?
  • 76. 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
  • 77. Historical Creative Performance 2005 2006 2007 2008 2009 1. Crispin 1. Crispin (695) 1. TBWAChiat (565) 1. BBDO NY (845) 1. GSP (680) 2. TBWAParis 2. TBWAParis 2. Crispin 2. TAG SF 2. Crispin 3. GSP (300) 3. AMV BBDO 3. Saatchi + Saatchi, NY 3. McCann Erickson 3. Saatchi + Saatchi NY 4. W+K London 4. DDB London 4. R/GA 4. Fallon London 4. W+K Portland 5. TBWAChiat 5. DDB Chicago 5. DDB London 5. Saatchi NY 5. Droga5 6. Taxi 6. JWT London 6. DDB Chicago 6. TBWAChiatDay NY 6. BBDO NY 7. DDB London 7. Dentsu Tokyo 7. BBDO NY 7. Crispin 7. Dentsu Tokyo 8. Fallon/NY 8. Forsman +Borden 8. BBH NY 8. GSP (260) 8. TBWA NY 9. Almap/BBDO 9. Taxi 9. Leo Burnett Chicago 9. Saatchi Singapore 9. CumminsNitro 10. W+K/Portland 10. GSP (155) 10. Fallon London 10. DDB London 10. Leo Burnett Lisbon 11. DDB Brasil 11. Fallon London 11. Saatchi + Saatchi, Singapore 11. TBWA Paris 12. Dentsu/Tokyo 12. W+K London 12. W+K Portland 12. W+K London 13. Springer + Jacoby 13. Saatchi + Saatchi, NY 13. TBWAParis 13. Saatchi + Saatchi, NY 14. Arnold 14. Nordpol Hamburg 14. W+K Amsterdam 14. Nordpol Hamburg 15. The Jupiter Drawing Room 15. Leo Burnett London 15. Fallon Minneapolis 15. Leo Burnett London 16. 180 Amsterdam 16. Lowe Hunt Sydney 16. GSP (115) 16. Lowe Hunt Sydney Source: Creativity Magazine, top 20 creative agencies at the awards shows
  • 78. 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
  • 79. 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
  • 80. We were named the most awarded 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
  • 81. 2009 saw a real cementing of our digital interactive credentials We 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)
  • 82. 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