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How proliferation and integration will render the traditional agency model obsolete.

And how we can make this work for us. How proliferation and integration will render the traditional agency model obsolete. Spending and Proliferation. Facts: Advertisers persist in increasing their spending. Currently at $236 billion annually in U.S.

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How proliferation and integration will render the traditional agency model obsolete.

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  1. And how we can make this work for us. How proliferation and integration will render the traditional agency model obsolete.

  2. Spending and Proliferation

  3. Facts:Advertisers persist in increasing their spending. Currently at $236 billion annually in U.S. 3,200% increase over the last five decades -- while the U.S. population grew 89%.

  4. What’s next?

  5. DirecTV purchased 2 new satellites capable of beaming 1500 HD channels. SBC (One Telephone Co)will have broadband to 30MM homes in less than 3 years. Yahoo just leased 250,000 sq ft in Santa Monica for it’s film/TV division Creating a huge demand for programming What’s next for TV

  6. Magazines on the wane?

  7. 1991 -- 156,650,000 U. S. magazine ad pages sold2003 -- 286,932,000 U.S. magazine ad pages sold

  8. Newspapers are the exception. Overall circulation has declined 20% in the past 20 years. Radio stations? 1000+ digital, commercial-free channels coming on-air. Not to mention web-based radio!) What about Websites?

  9. How many websites? Thousands accept advertising.

  10. Products are proliferating.

  11. Products?

  12. And now,Integration is accelerating.

  13. It used to be: Faster, better and cheaper -- pick two. Then it was faster, better and cheaper. Now it’s faster, better, cheaper and integrated! And it’s permeated our lifestyles.

  14. Do you play at work? Do you eat at work? Do you work while playing? Do you work in the shower? In the car? Do you have “work” thoughts during prayer, yoga or meditation? Take this integration test:

  15. Media: While it’s fragmenting, it’s integrating.

  16. The Movie Channel vs. MovieLink?

  17. What will be the difference in: The Movie Channel on TV MovieLink.com on the Web ?? Not much difference They will both post their schedules on the Web for VOD.(Video on Demand) News and Sports will be about the only “live” programming.

  18. Programs won’t be on “channels.” Programs will be files on servers. Program availability -- anytime, anywhere. The key to a program’s success will be Quality of programming Ability of the producers to build an audience Ability to drive traffic to the files. This is where we come in! Once it’s web-based:

  19. Special-interest-community-based IMC will be the tool. Publicity, emails, key-word search and advertising will build the audiences. Who will produce this programming? Who will own it? This is our opportunity.

  20. Production companies will become agencies. Agencies will become production companies. Agencies have the advantage: We have the client relationships We’re marketers We’re already production companies Who will produce this programming?

  21. Ouragencies can. Examples at The Phelps Group Panasonic – partner -- shopping pilot now Malaysia Airlines – shooting in March City of Hope – in production Monrovia Growers – concept development Others No success story yet. Who will OWN this programming?

  22. Generate a concept for a show that can tastefully showcase your clients’ product. Partner with your client. Share investment, profit, loss and EQUITY Finally, a way for agencies to have equity in their creations! Do a mini-pilot to sell-in to the cable networks and/or Yahoo, MSN, etc. Good luck! Steps to getting it done

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