Archive for the ‘The Advertising Agency Model’ Category

Digital: A jumpstart for connections on the web
April 25, 2008

Others that know me and consider me the “techy girl”; more on a bronze/silver level than a gold. I can and do understand a lot of “webspeak” when it comes to working on the back-end of a website, know many interesting nooks and crannies on the web, and really I know how to find almost anything about anything.

This passion for the internet and all things in it has come from a basic understanding of how advertising on the web works from a metrics standpoint and a strategy standpoint. Once I understood that you can optimize on a media plan during a campaign, I was hooked.

With the realization that not understanding interactive advertising would mean “job obsoleteness” in the future, later came the epiphany that not knowing offline would accrue the same result. Hence agencies recently rolling back in their “interactive” departments into offline/online sitting in adjacent cubicles: MindShare Reveals Major Re-structuring.

In relevance to this blog about gaps in the industry and connections planning, the question of investigation is how, and if so why is connections planning alive on the web?

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Impetus Behind 360: High/Low Effect and the Internet
April 7, 2008

I asked Gene Kincaid, a UT Austin professor head of the Digital sequence in the advertising department, what he thinks will be the driving force behind connections planning and he believes there will be a “high and low” effect. What does this mean?

“High”: Change and improvement in the industry will come “from the top down” because big agencies will be able to afford interdepartmental training and afford to nurture 360’s. 360’s will fill in the cracks and allow mega agencies avoid missing out on the benefits of real integration and brand consistency, (especially since their clients are demanding it.)

“Low”: From the bottom up, because with the exception of television production, media is less expensive now than ever before and accessible to all—thanks to the internet which cuts distribution costs so much, even free is possible. (That’s right free. It’s not my idea; thank Chris Anderson, author of the Long Tail). Now, Google will buy even traditional media for you. So small agencies are able to provide good service and intelligence, which, as long as egos fall by the wayside, is the perfect environment for connections planning.

Kincaid says the other catalyst behind 360 advertising is the internet. If online promotions are not absolutely integrated with their offline branding, the effect is disruptive. Internet is only a small fraction of many clients advertising budgets, so why is it so important? Let’s face it, online advertising is important because clients are demanding it, and why? because they can directly measure it. Measure it like no traditional media ever dreamed of. The truth is clients know they could probably cut off 10% of their traditional advertising spending, or 20%, or add 10% more and double sales, but which part? and how much? Well, no one really knows. This is why online advertising is a financial dream. Several creative/media campaigns can be tested in a few days, directly measured, and easily improved upon. Online is efficient, so clients demand it. How does this help promote 360 advertising? Advertising on the internet has to be collaborative—there are no rules dividing departments; they industry is still figuring it out and working together.

-Karen Brooks

 

Part 2: Generation Y agency competing with Boomers
April 7, 2008

We are groups of overlapping packets: we are ‘independents’ that can work together, but not always under the same roof.” -Carlos Casa

Carlos and I have been team mates in a project before. We were a part of a team that had to build, market and promote a product built for the iPod. We had to make a business plan and marketing plan, figure out prices, promotions-the works. So one year ago when Carlos announced that he and his brother were going to launch their new advertising agency, Azul & Green, I was not surprised.

Although Carlos has some involvement building a business and an idea of the advertising business, he had to build A&G from scratch, learning how to run, pitch, innovate, and keep business himself. Today, A&G is made of four people: Engelbert, Carlos, Allen, and Shiann. Engelbert handles mostly the day to day operations as well as the buying for the business and clients. Allen is their creative that has some industry experience. Shian and Carlos are more of the account planner roles: researching, talking with clients, helping creatives, etc.

“The difference now is that in the past, you had to have an office,” says Carlos.

A&G is based out of the Casas’ home, but each employee working wherever they please. They come together when they need everyone’s help, input or cooperation. They heavily rely on phone calls and e-mails to keep up to date on status and news.

Azul & Green is an agency that is relevant to one of Adbridge’s core discussions about generations and the industry. A&G is a Generation Y agency where it did not matter how much money they started with, they were going to make their own waves–and they have.

Azul & Green has more challenges but even more opportunities.

A&G is anything but short on great, innovative ideas for their clients-their challenges lie within the budgets. They might have a great idea for a billboard but the affordability of that vehicle compared to others makes it just out of reach. Carlos says they do quite a lot of collateral and newspaper within the Hispanic sector. “A lot of the time, Spanish speaking businesses will advertise in Spanish magazines and the creative will be all wrong.” Azul & Green is in a holding pattern at the moment until Carlos graduates. “We don’t mention that most of us at A&G have not graduated yet but only one client has asked and he was impressed.”

There has been opportunities and new windows opened to A&G that run horizontally to growing the agency including A&G Publishing services. The publishing division develops Spanish targeted educational posters for teachers; available via their website http://www.azulgreenpublishing.com

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Interview: HR rep at Digital Media arm of a global ad agency
March 31, 2008

AdBridge caught up with this Recruiter to talk about interdepartmental collaboration and how his HR department is adapting to the generation gap in the workplace:

On collaboration… 

  •  It depends on the client and the holding company more than anything else. Two agencies will struggle to collaborate if they are owned by competing holding companies or if the client has multiple people managing multiple agency relationships.
  • Internal collaboration between departments is tricky because employees are over-extended. When departments fail to collaborate, everyone loses, but it happens mostly because people are too pre-occupied with their own projects and deadlines to be able to contribute to a colleague’s as well. Territory battles are a reality, but stress is the bigger factor. 

On Millennials…

  •  They tend to do well in digital because their co-workers are closer in age.
  • HR departments really are actively working to adapt agencies to generational differences 
  •  Millennials want everything too soon. They expect to get promoted quickly because they perform their duties well, but don’t understand the other factors at play.
  •  Millennials tend to “top out quickly” because they lack management skills and have a hard time delegating day-to-day responsibilities. Promotions are about putting employees in charge of people, not just projects.
  • Ad agencies are structured with intermediary job titles (Assistant Planner > Planner > Supervisor > Director) so that employees can gradually prepare for management roles. Hierarchy is an unfortunate side-effect of that model.
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Assembly lines for advertising are oiled by the people who like structure in an industry that is supposed to be about change.
March 18, 2008

http://honors.rit.edu/amitraywiki/images/8/8f/Assembly.jpg

1) Agencies in the advertising industry have become strictly structured producers.

Ideas are divided into parts with media, creative, account services/planning taking a piece. Communication between each group occurs only when they need to, telling each other just what they need to know to do their job and complete their work. What often lacks in this communication is explaining the reasoning, the vision, and the conceptual thought behind the decisions.

2) Advertising Campaigns are completed in a linear process, because it’s efficient

The overall advertising campaign is completed in one of two ways, both a linear state-of-mind. The first linear state is when a percentage of the work is completed by one department and then passed along to the next; thinly building on the previous portion. Even worse, as mentioned before, is the second linear state where work is completed, with a lack of communication between, at the same time with limited intersections with other tools.

3) If you have ever worked in agencies that seem to use a lot of the same tools over and over again, and you find it odd that they seem stuck in their ways—they might suffer from ‘Assemblage’.

The physical and intellectual separation by departmentalization and using tools that people are comfortable with using have made advertising an assembly line: ‘Get the work done in the quickest way possible’—instead of a way of thinking or procedure that has the most optimization for the client. The ‘assembly line’ method affects agencies by creating a system that produces similar work for different clients. ‘Do what is familiar, do what is easy and get it out the door.’

4) There is only ownership of work and no ownership of thought.

Not to say that the day to day operations of dealing with representatives of print and broadcast companies do not take a talent, professional intellect and instinct, but when the actual strategy for the client is left to a very small amount of people, from the outside perspective—everyone else is just filling out the paperwork.

5) We need to talk. We need to exchange. We need to drop the assembly line attitude.

People can be so concerned with getting the work out so efficiently that they form a structure, which restricts the flow of ideas, the development of ideas and makes it quite difficult to get your thinking outside of the box—because they do not have time to get out.

Sources:

“The Marketing Company Communications Disconnect: And Why Ad Agencies Are Viewed as Laborers Rather Than Architects”

By A. Louis Rubin, Advertising Age
Published: June 06, 2005

Commentary by A. Louis Rubin
It’s the sad truth that no one in the communications business wants to acknowledge or admit but the bottom line is that few communications professionals are invited into the inner sanctorum of marketers’ strategy and planning sessions on the executive committee level.