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Reconsidering the Advertising Industry

There is a disconnect between what brands want and agencies deliver. Download the FREE 40 page report Reconsidering the Advertising Industry and learn how agencies can bridge this gap (go to: http://tinyurl.com/55cs9o)

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Reconsidering the Advertising Industry

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  1. A Conversation Starter Reconsidering the Advertising Industry By: Alain Thys and Stefan Kolle © Lisovskaya | Dreamstime.com FUTURELAB Sponsored by Management Centre Europe.

  2. FUTURELAB Comparative Estimates: US Total Media Advertising Spending Growth, 2009 (% change vs prior year) Wachovia: BMO Capital Markets: Collins Stewart LLC: GroupM: Citi Investment Research: MAGNA: Morgan Stanley: ThinkPanmure LLC: UBS: ZenithOptimedia: Myers Publishing LLC: Barclays Capital: - 0.8% - 1.9% - 2.0% - 3.2% - 3.6% - 4.5% - 5.0% - 5.0% - 6.0% - 6.2% - 6.7% -10.0% Source: Seven Predictions for 2009, eMarketer, January 2009 Prelude: Why This Document Exists © Lisovskaya | Dreamstime.com

  3. FUTURELAB Prelude: How will Agency’s Fare in a Market Where Clients are Dissatisfied? Net Promoter Score™ by Industry telco advertising automotive -6% -21% © Stockphotonyc | Dreamstime.com -48% The Net Promoter Score ™ is a registered trademark of Bain, Satmetrix and Fred Reichheld

  4. Prelude: Are Marketers Held Hostage by the Advertising Industry? High Hostages Loyalists Likelihood to repurchase Defectors Mercenaries © Alexey Avdeev | Dreamstime.com" Low Low Likelihood to recommend High FUTURELAB

  5. Prelude: Do Agencies Overestimate Their Impact on the Client’s Success? © Chris Fourie | Dreamstime.com FUTURELAB

  6. Table of Contents SITUATIONAL ANALYSIS: Agency Challenges 2009 Page 7 12 REMEDIES: Setting Things Right Page 35 10 FORMATS: Agency Models of the Future Page 48 Page 59 Appendices for Digging Deeper FUTURELAB

  7. FUTURELAB Chapter One Situational Analysis: Agency Challenges 2009

  8. FUTURELAB Chapter One Situational Analysis 7 client needs many agencies ignore. 3 areas where agencies are “out of synch” 4 gaps in agency authenticity

  9. Client Need #1: 75% of clients want a truly tailored approach to their business FUTURELAB © Frozenpeas | Dreamstime.com

  10. Agency Response #1: Services that Happen to Fit the Agency Model FUTURELAB

  11. © Breeze393 | Dreamstime.com Client Need #2: Show Me the Return on My Marketing Investments FUTURELAB

  12. Agency Response #2: We Are Very Creative ... And Big ... And have Big Clients © Robert Byron | Dreamstime.com FUTURELAB

  13. Of the 50 largest advertisers in the world ... 74% Opined that these deals caused bias in the choice of media and recommendations. 91% 85% Consider the media buying process to be insufficiently transparent Are convinced their media agency had deals outside the client agreement Client Need #3: Be A Trusted Media Partner FUTURELAB

  14. The Occasional Scandal Continued Intransparency Underperformance and “creative math”” Agency Response #3: Bad Apples Image 1: CC 2.0: Phauly Image 2: (c) Design 56 – Dreamstime.com Image 3: (c) Aleksander Ruzicka FUTURELAB

  15. Client Need #4: Engage Our Audience Image cc: Dogsbylori's - http://tinyurl.com/6658d7 FUTURELAB

  16. Agency Response #4: Saturation Bombing FUTURELAB

  17. What marketing leaders want from their agencies when it comes to digital Client Need #5: Walk Digital FUTURELAB

  18. FUTURELAB Agency Response #5: Talk Digital © Yuri Strakhov | Dreamstime.com

  19. FUTURELAB CAGR by Marketing Mix Element - Manufacturers (2004-2010 Est.) Source: Deloitte, 2007 Client Need #6: Shopper Marketing

  20. FUTURELAB Agency Response #6: Silo-based Thinking © Phillip Minnis | Dreamstime.com

  21. FUTURELAB Client Need #7: Help me into the C-suite

  22. FUTURELAB Agency Response #7: Look How Cool and Fun We Are ... And Creative Too! © Tomislav Birtic | Dreamstime.com

  23. FUTURELAB Chapter One Situational Analysis 7 client needs many agencies ignore. 3 areas where agencies are “out of synch” 4 gaps in agency authenticity

  24. FUTURELAB Agencies have optimised their business for themselves. Not for their customers. Kris Hoet, EMEA Digital Media Communications Manager, Microsoft Disconnect 1: Most Large Agencies are Mass Production Factories… © Leigh Prather | Dreamstime.com

  25. FUTURELAB Agencies need to be chameleons which can become what ever the client requires them to be. Not just what they happen to be good at. … While The World Needs Multi-Disciplinary Boutiques © Iphotoexpert | Dreamstime.com

  26. Digital Creative Production Management Account Mgmt Planning Disconnect 2: Most Agencies are Multi-Local with High Levels of Duplication ... © Michael Brown| Dreamstime.com FUTURELAB

  27. ... While Today’s World is Global and Highly Interconnected © Hewlett Packard, Halo Room FUTURELAB

  28. Disconnect 3: Agencies Compete within “Their Crowd” ... © Julien Tromeur | Dreamstime.com FUTURELAB

  29. © Kevin Renes | Dreamstime.com ... While the Competition is Transforming FUTURELAB

  30. FUTURELAB Chapter One Situational Analysis 7 client needs many agencies ignore. 3 areas where agencies are “out of synch” 4 gaps in agency authenticity

  31. FUTURELAB Authenticity Gap 1: Diffuse Identity © Eric Marechal | Dreamstime.com

  32. Authenticity Gap 2: Oversensitivity to Trends FUTURELAB

  33. FUTURELAB “We knew that it wouldn’t work, but the client wanted it. So we made it happen. After all, under all the gloss, we must accept that we are prostitutes.” Head of Business Development commenting on modifications to a global campaign you know. Authenticity Gap 3: Undue Compliance © Jose Antonio Sánchez Reyes | Dreamstime.com

  34. © Steve Cukrov | Dreamstime.com “I don’t care about making money for my clients. I just want another award before I jump this ship. ” Agency CEO of a A-list mediterranean agency “Listen, we know that spending x million in above won’t fix the issue, but they’re going to spend it anyway. We can just as well try to grab as much as possible.” Pitch team on an international account If a client thinks a brand is great, but you find out his consumers disagree, you’d only tell him if you’d get more business out it. Otherwise, best to leave these things untouched. Major agency creative director instructing a recent recruit over lunch Authenticity Gap 4: Occasionally Questionable Motivations FUTURELAB

  35. 1. Become a solution house ... 2. ... Or Not 3. Talk Money 4. Media Neutrality & Transparency 5. Replace Noise by Engagement 6. Be Digital 7. Think of the Shopper 8. Get a Makeover 9. Synch to Global Reality 10. Establish A Clear & Differentiated Position 11. Align Good Apples, Get Rid of Bad Ones 12. Take a Moment of Self-Reflection Chapter Two 12 Remedies to Set Things Right FUTURELAB

  36. © Jan Prchal | Dreamstime.com “Our recommendation is not to proceed with any above-the-line campaign in the coming year. In stead, it is better to upgrade call-centre training and accellerate the go-to-market processes so they co-incide with the consumer shopping cycle. Obviously we are happy to assist in these areas.” #1 Become a Solutions House ... FUTURELAB

  37. © Infomages | Dreamstime.com #2 ... or not FUTURELAB © Lisa F. Young | Dreamstime.com

  38. © Breeze393 | Dreamstime.com #3 Talk Money FUTURELAB

  39. FUTURELAB © Nob50 | Dreamstime.com #4 Media Neutrality and Transparency

  40. FUTURELAB #5 Replace Noise by Engagement ©i Dan Breckwoldt | Dreamstime.com

  41. © Spaceheater | Dreamstime.com #6 Be Digital FUTURELAB

  42. #7 Think of the Shopper ©i Edyta Pawlowska | Dreamstime.com FUTURELAB

  43. FUTURELAB #8 Get a Makeover © Rebecca Abell | Dreamstime.com

  44. Image: (c) Sebast1an – Dreamstime.com #9 Synch to Global Reality FUTURELAB

  45. #10 Establish A Clear and Differentiated Position FUTURELAB

  46. Customer Proposition Strategy Commitment Behaviour of Leaders Culture Performance Metrics Processes & Structures (c) This framework is property of Management Centre Europe – used with permission #11 Align Good Apples, Get Rid of Bad Ones FUTURELAB

  47. © Pavalache Stelian | Dreamstime.com FUTURELAB #12 Take a Moment of Self-Reflection

  48. FUTURELAB Chapter Three 10 Formats: Agency Models of the Future

  49. © Sedam35 | Dreamstime.com #1 The Factory FUTURELAB

  50. FUTURELAB © Infokus408 | Dreamstime.com #2 The Category Killer A: Media

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