Department of inconvenient questions: All change in Adland ?
Image : Rene Asmussen on pexels.com
Am I alone in being bored by the debate around transparency in media cost and measurement metrics,fake consumers or "disrupted" business models ? As a consumer bored by the lack of originality of much of todays creative ?
Shouldn't we all be doing more about improving the quality of creative that's out there today rather than restructuring ? Just maybe , and yes this is a radical notion , better creative would yield better returns for all in the ecosystem....
A recent post by Alberto Brea talked about the development of the traditional advertising business model in the face of industry disruption ( ie increases in client side in-house creative teams ,or the entrance in force of management consultancies into adland) and suggested the likely new operating model would see the ad companies concentrating on either the creative or the production ends of the process, right around the time Sir Martin Sorrell did exactly that as the first step of his new venture.
As a client side marketer for over 30 years I have seen any number of versions of the agency model ,which has shown such flexibility as to make a Transformer character envious ... and I suspect somewhat cyncially this has rarely been driven by a desire to make better creative , with some notable exceptions ( the launch of BBH in London comes to mind).
The real agency :client tensions have consistently in my own experience had as much to do with money ,with clients looking( apparently surprisingly) for true transparency and measurability around costs and returns as they ever have about the creative product.
Oddly enough the consumer whose needs and desires we collectively strive to satisfy has not always come first in the discussion . Pinpointing my need state and likely choices is valuable science, but then hit me with great creative or I choose ad blocking...
The likes of Bob Hoffman have written most eloquently and persuasively about the issue of transparency in media costs and audience metrics ;others like Marc Pritchard at P&G and Keith Weed at Unilever have talked tough and followed through, with little or no impact on their brands.
There are those who say that consultants move into adland is doomed by the apparent contradiction between the necessary impartiality and objectivity demanded of a business consultancy , not to mention the working culture and environment which is deemed likely to be hostile if not fatal to the creative soul ....we shall see.
From my own perspective , now on the outside looking in, I would love to be seeing more debate about improving the creative product and delighting consumers....
Friday, 27 July 2018
Tuesday, 10 July 2018
Never mind agile...do the Hokey Cokey
(image source:pexels)
There is a great deal of corporate activity and musical chairs going on in both agency and client land ( both manufacturer and retailer side ) , as players large and small seek to find safer new ways to futureproof their current business models in the face of encroachment by new entrants with their new fangled ways and fancy dance steps :
In summary it seems everyone is trying several approaches to secure space in the new ecosystem whilst scaling up in their historic core areas , thereby covering all the bases.
Management consultancies are said to massing at the gates of Adland as I write these words; meanwhile clients are increasingly said to be bringing parts of the media and creative functions in house.
New,supposedly more ............( insert adjective of choice here : disruptive/ agile / ethical ) start ups are mushrooming in CPG/fmcg ,especially in plant based alternatives to meat ; or in subscription and direct to consumer based businesses such as Dollar Shave Club .
Major branded packaged goods companies are busy buying up or building stakes in these self same new wave/ startups (Danone buys non dairy specialist Whitewave , Nestle buys artisan Blue Bottle coffee, Unilever buys Dollar Shave, Tyson meat buys into plant based meat alternatives , Mars buys into pet health care etc.,) whilst also simultaneously seeking to consolidate with other large and similar businesses.
Meanwhile retailing is undergoing major shifts, with multiple profit warnings ,store closures and insolvency in the UK as traditional bricks and mortar based businesses seek to embrace omnichannel : Walmart buys Flipkart , Tesco and Carrefour cooperate to bulk up their buying clout , JSainsbury buys Asda from Walmart in the UK....just as Internet based competitors move into the bricks and mortar world(Amazon does or will do everything from food to fashion to pharma eventually,Alibaba in China entering partnerships with bricks and mortar stores Bailian and teaming up with 13 Chinese real estate developers and Chinese Hema supermarkets).
The pace of change is dizzying and accelerating ; the mass market middle ground is no longer considered strategically a safe place to be ... meaning going forward businesses need increasingly need to have a laser focus on their brand's true core ,differentiating competencies whilst planning for an amorphous and fluid approach on how they deliver them.
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