09 May Ad Men are no longer MadMen
The International hit TV Series Mad Men portrays a traditional view of the ad industry that is increasingly further from reality. Set in 1960s New York, the sexy, stylized and provocative drama Mad Men follows the lives of the ruthlessly competitive men and women of Madison Avenue advertising, an ego-driven world where key players make an art of the sell.
But times have changed and the world of advertising is undergoing a massive overhaul in part as result of the emergence of new forms of digital media (eg Facebook etc), the shift in power from east to west and as a result of the GFC a denabd for more quantitative justification.
The old axiom has always been — 50% of our advertising doesn’t work we just don’t know which 50% — but now advertisers are looking to find the 50% that doesnt work and cut it out.
As a result agencies are under pressure to deliver for more for less and having to change their approach accordingly.
At a recent Conference I attended in Singapore – Digital Signage World Asia – there was much discussion about the changing nature of advertising and overcoming the reluctance of ad agencies to move away from the traditional approach and forma of media.
Whilst major businesses like Proctor and Gamble are pushing the need to embrace Digital Out of Home the agencies are having to be forced to look at new ways by the client.
In future posts I will look at the impact of P&G’s drive to cut costs by $10 billion over the next 5 years including slashing marketing budgets. In doing so they plan to embrace New Media to increase Reach – Frequency and Effectiveness of the marketing spend aiming to establish one to one relationships with their customers.
This has included forcing the vast array of agencies, planner, buyers etc across their businesses to work together and develop cross platform and cross brand campaigns.
While on the Agency side the major players such as the World’s largest Advertising Company WPP – brands include Ogilvy & Mather, JWT, Y & R, Grey Worldwide – have spent the past 3 years re-inventing themselves.
Their CEO Sir Martin Sorrell has consistently said they are no longer an Ad Agency. There are three objectives he has in growing the business
- Develop new markets such as China and India
- Increase Focus on new Media
- Develop into an information business and deliver qualitative justification to support their clients spending
Interestingly whilst being squeezed hard like all agencies post GFC they recently recorded an annnual profit of 1.45 GBP … up 43% over the previous year.
In another upcoming post –Are WPP moving in our Direction – we will look at how they are going about their re-invention and the impact it will have on Digital Out of Home in markets like China and India.