Posts Tagged ‘future of advertising’

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Are ad agencies future ready?

January 12, 2010

What was the market for “Cola” when Coke was launched? Or what was the market for Burgers when McDonalds was launched? It was virtually ZERO. All those great brands have been built by advertising brick by brick. But the problem is we admen glued to the past rather than steering towards the future. When we can help all the brands of the world to get ready for the future, what made us to ignore our own backyard? That’s because we have taken the consumers for granted. When we controlled what they see and when they see, every thing was going good. But the consumer slowly evolved and today HE decides what to see and when to see!

Think about industries like IT, Aviation, Telecom, FMCG, Retail etc. They are what they are today because they understood the need for change to evolve with the consumer. The truth is advertising never liked the change. Agencies ignored the power of online 10 years back since it affects the revenue stream from traditional media. Even today internet is considered as NEW MEDIA (?). Even when the internet has finely embedded to the consumers’ life in form of WEB 2.0, agencies shy away from social media marketing. Because they wanted to push that out of the world TVC which opens in Hawaii, or that superb print campaign in all leading dailies. All agencies are capable of doing great work. But consumers no more want great TVCs, or amazing Print ads. They want transparency from a brand and a great brand experience.

The future of advertising is in the hands of mobile, online, social networks, and LBS. But traditionally, both admen and agencies have stayed away from adapting new skills like the IT companies and their programmers. But no more, brands will always tailgate consumers. It’s the time for agencies to adapt to the change. We can argue that clients pay agencies very less. But who is responsible for this?

Advertising is truly a knowledge based industry. When other knowledge based companies like McKensey, Deloitte, Earnest & Young, Reuters, Bloomberg etc get the fee what they wanted, agencies at the end got trapped in to the commission and less fee model. Because we fear that If we say ‘no’, then some one else will say ‘yes’!

The latest IBM Study indicates that the change advertising industry will witness in the next 5 years will be equal to the change in the last 50 years. It also warns us on the “End of advertising as we know it”.

What does this mean? End of advertising? Hell, no!  Advertising won’t be vanished but forced to change.  It’s about advertising re-born. Reaching the Holy Grail.

“Giving consumers what they want. Not what Marketers/agencies want?”

No more, consumers need to find the news. The news finds the consumer. Same way, the future holds tremendous opportunity where products find its consumer. Thanks to the technology, innovations like Mobile, social media, augmented reality etc provided us a solution to walk-with the small guy-The consumer.

The global advertising networks like WPP, Publicis are getting ready to face the future. While Publicis revamped their offering like Vivaki, Razorfish, Phonevalley etc, WPP too have created specialized divisions to face the future.

No one including Sir Martin Sorrell can’t pinpoint the perfect agency of the future since today’s business is dynamic and changing every day! Marketing communication needs to walk along with the consumer. And the consumer is not walking today! He is stumbling! The issue here is except few brands and agencies, most marketers haven’t found the perfect formula to pair hands with the modern consumer.

Opportunity today is that nothing is a success formula neither a flop formula! Mobile and Web 2.0 has empowered us to engage with the right consumer for a brand. Every brand need to channelize the brand essence in an more engaging way. We don’t need to afraid of failure in digital era. In digital era, when a brand makes a mistake, the rescue comes from an unexpected end – Brand Loyalists!

The future advertising agency is the one where it has a Digital DNA. We better watch out the agencies like AKQA, Razorfish etc.

Why so serious? Just register your views here :)

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New Generation Agencies. Can we see some in 2010?

December 10, 2009

Personally, the year 2010 looks very interesting and promising for advertising.  I strongly believe this is the year that will determine the future of the advertising industry. And obviously this year will bring the best innovation in agency format and the working style of agencies.

Are brands going to get more the specialized agencies on board by rejecting the biggies? If we go by the early indicators, things are not so great for the global networks. The Wrigley’s recent agency shake down might be the beginning of the end of the mind set “everything under one roof”. How many times have we heard this statement from clients “our last agency did a great job, but they don’t get interactive”!

On the other hand many experts in traditional setups feel that digital agencies are struggling to transform their technology knowledge in to long term brand value, because traditional agencies have 100 years of brand building experience! Read few interesting debates on whether digital agencies are ready to lead here and here.

But, Facebook is a brand that was built online and so is Twitter! These two brands clearly showed the world that, a brand can be built in a short time, without using any traditional methods! Apart from these brands there are thousand other brands that have been built online, which proved that brands just need a clear vision and mindset to evolve along with the changing consumers. Even bigger brands are moving towards interactive communication. Here is the list of Ten Smartest Big Brands in Social Media, by Mashable.

We have to accept the fact that, traditional agencies are changing, but not at the required speed. The day when agencies start thinking to channelize the brand thought in an interactive way rather than their favourite traditional media which brings more profit, it might bring some bloom to the credibility of agencies. But the transformation should not be at the cost of traditional media! Agencies just need to do marketing WITH the consumer rather than marketing TO them. Agencies just need to figure out the art of pairing hands with the consumers and build the brand in the age of crowd sourcing. When the performance based incentives are round the corner, agencies need to buckle up!

I really liked a thought from a recent article from iMedia “It’s the agencies with digital DNA that can think strategically like traditional agencies that will thrive in future”.

Have a look at the following presentation from Köksal Abdurrahmanoglu regarding new generation agency model. Its worth your time.

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