Ad Agency Deathwatch: Martin Sorrell Won't Be 'Disintermediated'

Ad Age reports agencies 'not moving fast enough' to adapt to changes wrought by digital media.

WPP Group's CEO revealed to a group of media and advertising bigwigs efforts within his 20-year-old company to remain relevant in today's rapidly evolving marketing world. His remarks were part of an interview this morning with New Yorker writer Ken Auletta at an event sponsored by the Newhouse School at Syracuse University.

Of the many challenges he handles running the world's second-largest advertising-and-marketing services company, the toughest, he said, is staying on top of technological changes. "What keeps me awake at night," he said, "is the thought that somewhere there are software engineers working in a garage, probably in Shanghai, who'll disrupt things as we know it."

WPP, like all companies involved in media and communications, is being buffeted by the continuing growth of the internet. Traditional media -- broadcast and cable TV, print, radio and outdoor -- will not be as profitable in the future as it has been in the past, he said. Digital media, already the fastest-growing sector of all media channels, will continue to take more share. Currently it comprises only 7% of global advertising spending; Mr. Sorrell believes that it should grow to 20%.

"We spend 20% of our time online, according to Google or Yahoo," Mr. Sorrell said, "so by logic, 20% of all dollars should be spent online."

In some countries, such as the U.K., online and search outlays already comprise 14% of total media spending, besting the U.S. and other developed countries. "I think inexorably online and related activity will get to 20% -- farther, probably, because [people] will be spending more time online," he .

The web, he said, has democratized access to information that was never before available publicly. "The power is in how you use the information, and analyze it," he said. But the result of widespread internet use is that structures of companies and media will have to change radically. "In our own business, for instance, there's advertising being made by consumers," appearing on sites such as YouTube and Heavy.com, he said.

"Our established agencies are not moving fast enough" to adapt to the change, he said. Rather than disregard the fledgling technologies, some of which, like that used by a start-up SpotRunner, could replace companies' need for creative and media ad agencies and ultimately put much of WPP's holdings out of business. That's why Mr. Sorrell is investing in them. "We could ignore it," he said, "but I'm not prepared to preside over a company that gets disintermediated."

via Ad Age

Event: "What Web 2.0 Means for Advertising Agencies"

Ad2/Ad Federation Minnesota Event: "What Web 2.0 Means for Advertising Agencies"

If human behavior is changing, advertisers need to adjust their strategies.

Planning Director Aki Spicer and Interactive Production Manager Paul Sanders from Fallon will identify some trends that have brought us to Web 2.0, and why advertisers need to pay attention if they are to remain relevant. Web 2.0 is a convergence of technology and social trends impacting media consumption beyond the internet.

@ 7p (5:30p socializing starts)
O'Gara's Bar & Grill
651-644-3333
164 North Snelling Avenue
St Paul, Minnesota

OMMA Mobile: The Afternoon Session...

Here it is, your recap of the OMMA Mobile Conference's afternoon session last Thursday...

(See my report on the conference's morning lineup, my disclaimers about not being a media guy, my Swingers reference, and my oozing excitement over the potential and possibilities of mobile marketing here.)

Lunch was really good, and it was followed by the important Mobilizing the Agency session. One standout was Jeffrey Stier, SVP of New Business for JWT, where they have embedded a mobile agency to consult on all marketing matters. Stier claims that they now assign a mobile marketing expert to every core brand team. If that's really true, I greatly admire their commitment to experimentation. (Yes, as high as I am on mobile, it's still an unproven experimental ad medium -- one that EVERY AGENCY should be experimenting with.)

Another Jeff, Mediacom's Director of Digital Media Jeff Malmad, offered that "Data will drive mobile", supporting (Starcom's) Angela Steele's emphasis on understanding the consumer. "Mobile ads need to be so relevant that it doesn't feel like advertising," said Steele. And what about privacy? Well, Amazon knows a lot about us and that's all good because they recommend the right stuff, right?

Steele went on to say that in the Awareness-Consideration-Purchase chain there are mobile opportunities throughout, and that agencies should meet with every mobile vendor to learn as much as possible about what's out there. One of those vendors, mobile agency Ipsh!, was represented on the panel by Bryon Morrison, who evangelized mobile as a "fantastic" direct marketing medium. Then he dropped, "How valuable is the opt-in relationship?" Well that's the magic question.

The breakout sessions followed, and I'm a broadcast producer by trade so naturally I checked out Big Screen Little Screen: TV Phones It In, where I discovered...

-ITV (interactive television) is alive and well and it has nothing to do with your remote control.

-Two years ago Bravo TV tried asking viewers to text their choice for the winner of Project Runway and the response was huge. Now they boast one of TV's leading mobile platforms including location-based mobile social networking, a mobile Project Runway fan club, and a brilliant new idea where on-screen product placements trigger an instant text message to viewers containing brand info/deals/coupons/whatever relating to the product they just saw. So much for taking product placement impressions on faith!

-Airplay offers mobile games to play along with live TV event programming like sports (NBA, NFL, NCAA Football) and award shows. They even set it up so users are served ads on their phone synchronized with the advertisers they see on TV. Very cool.



-Telescope (great name) is helping Sprite with their sponsorship of the NBA's Slam Dunk Contest next weekend in New Orleans. I presume Dr. J and 'Nique and the rest of yesterday's dunk kings will be there again judging the early rounds, but this year THE FANS WILL GET TO DECIDE THE DUNK CHAMP when they vote for one of the two dunkers in the final round VIA TEXT MESSAGE. Everyone who votes receives a text invitation to visit an innovative and already popular branded mobile social network created by Sprite called The Yard. They're going to get a lot of votes (mine included), and The Yard is going to get very crowded very fast. Best mobile hook I heard all day.



Let me repeat for emphasis: Sprite (the soda brand, not a tech start-up by the same name) went out and created a fully branded mobile social network experience (where they remind people to drink Sprite quite a bit I'm sure) and now they're letting the fans decide the Slam Dunk contest for the first time ever in exchange for a personal invite to hang out in their Sprite-soaked virtual mobile "Yard". As my one-year-old niece says, Big. So big.

How Open is Open? followed and turned out to be a pretty technical discussion about the openness of the mobile landscape. The word "open" in mobile was compared to the word "change" in politics -- everyone talks about it but it means different things to different people. Google Android will allow outside developers to create mobile apps for all to use, but who will provide dependable support? The best analogy I heard was that mobile web browsing today is like web browsing used to be for AOL customers, i.e., not open (but the iPhone's browser is open).

The day concluded with an analysis of the myths (or truths) surrounding the mobile marketing space today. Some quick highlights:

-SMS (text messaging) is the ultimate User-Generated Content, according to Amobee CEO Roger Wood, who talked about intercepting text messages, converting them into MMS messages with a graphic ad tacked on, and then sending them on their way to the originally intended recipients. No way, you say? Well what if it made sending and receiving text messages free?

-Rhythm NewMedia offers free ad-supported "video snacking" (2-3 minute shorts) on your phone, where practically nothing is free. The question is, do people want lean back-style video viewing on their phones?

-Enter Tony Nethercutt from AdMob, who reported that banner ads on mobile WAP sites that included the words "Watch the Video" saw clicks go up 3-5 times.

-During January's NFL playoff games, ESPN actually drew more visits to its mobile WAP site than to its regular website, despite a high number of iPhone users who typically browse the non-WAP web. I guess people watching games have their phones with them but they don't always have their computers.

-The mobile carriers started out as voice service providers and now they're being railroaded into becoming media companies. As media companies they sit on piles of user data, all of which could be used to serve highly-targeted ads. They're also dealing with a drop in talk time and a rise in other services -- texting, photo messaging, game playing -- that they need to monetize. So how are they making the transition? Not well, not yet.

And that's why mobile may not explode for a while, despite its enormous potential as an always on, always on you marketing platform with your wallet (your cellphone bill) built-in. Peter Kim attended the conference and blogged that mobile just isn't ready, but that shouldn't stop us from experimenting heavily to learn what will work when the time is right. Agreed.

So I began the day as a big believer in text, and by the end I'd confirmed that virtually every phone has SMS capability so text message campaigns (inspiring users to opt-in for useful, relevant brand info and deals) are ready right now as ultra-modern permission marketing vehicles, and that SMS ads can be a bridge to mobile WAP sites featuring more branded bells and whistles. But I also learned that mobile banner ads (large in relation to the overall screen size with a one ad per page limit) are another very effective means of driving people to your mobile web offerings, depending on how and where you use them. What you do beyond the click is up to you.

The bottom line is this, borrowing from MediaPost columnist Steve Smith's summary to close the conference:

MOBILE NEEDS TO ENERGIZE THE CREATIVITY OF THE AGENCIES

...and seriously, how can it not?

University Marketing: Creating (A) School Spirit

I've always felt most school's would fail to get a passing grade in Marketing (even as I pursued my degree in this field). From fairs to brochures to tours to websites to videos to alumni newsletters, they don't do a heck of a lot to pull people in/make a connection and keep them connected. The know, however, for many, their sports teams create a real draw. This week's AdAge has a good article on the benefit(s) of a university's "cinderella" team making it far in the men's and women's NCAA basketball tournaments. For example, last year's George Mason saw a significant increase in applications this year (4x greater) after making it to the men's Final Four, 25% increase in "giving," and got press mentions worth up to $50MM in purchased media.

Unfortunately for those smaller, less known/popular schools, this year's men's tourney boosts household names of Ohio St., Florida, UCLA, and Georgetown. However this year's women's bracket saw a Sweet 16 shocker in Marist, who planned to take advantage of this moment in the spotlight by...drumroll please...simply playing the game.

Asked if Marist would take advantage of its success by running a 15- or 30-second commercial on ESPN's telecast of the game against Tennessee, Mr. Murray said the school had something longer in mind. "How long is the game going to be on? Two hours? That's a two-hour infomercial for us."

Fair enough. And when you think about how colleges and universities have historically and typically chosen to market themselves, you can't help but admire the "action speak louder than words"/events speak louder than ads approach. Look no further than this Slate article's title, to some up traditional university marketing: "Those Weird College Ads: If you like our football team, you'll love our chem labs full of Asian students."

As state-school spokespersons are quick to point out, colleges don't pay for the airtime—the slots are provided at no cost under most college-football television contracts.

Yet, there must be a way to not just fill this time better, but have a more compelling message and make a stronger connection with viewers. First you have to understand who that audience is. It's probably not full of potential student-athletes, it's probably not be full of jock guys, it may not be potential applicants, it may not be potential donors. It may be all of the above, but primarily current students. So the opportunity may just be to engage and galvanize the entire student body to create a visible or somehow tangible sense of positive energy and enthusiasm on the campus. In this case, maybe you sponsor a student created video contest. Or maybe there's a noticeable dropoff in or lack of current students participating in volunteer orgs, so you can make them aware of the opps available. In this case, you drive them to a comprehensive website or event.

Overly simplified, more university's need agencies to help them first and foremost, define objectives, learn about your audiences, create strategies for recruitment, donation, etc., develop smart and unique ideas and ultimately execute them. To help them understand what makes them unique and optimize real moments for connection—from the ads to athletes to the professors to the events to the students. (Hopefully the ones giving the tours are like Guide #2 in this post from Hill Holliday's blog.)

New Media: Reuters Reports in Second Life

Adrian sent me an article this morning on Reuters new virtual news bureau within Second Life. The growth of this virtual world still continues to amaze me, I never thought I would be so intrigued by something like this (never even liked the Sims that much), but the level of interest it has generated in pop culture is really impressive. We've now got ad agencies, mega brands, banks, news bureaus and user-created brands among many others all popping up and attempting to operate similarly to their real world counterparts (I'm still curious to see if these virtual moves translate into real-world $$). In regards to those user-created brands, the most visible seems to be Anshe Chung, a virtual world real estate company where you can make deals on property, buy Linden dollars ('Linden' being the name of the SL world), and get involved in the virtual community.

In regards to Reuters' venture, Adam Pasick, a media correspondent, will be the chief/head honcho of the virtual news bureau, taking on the moniker of "Adam Reuters". Reuters is the first real-world news source to open up shop within Second Life, though their big media competitors are quickly following suit, such as Wired Magazine.

"As strange as it might seem, it's not that different from being a reporter in the real world," Pasick said. "Once you get used to it -- it becomes very much like the job I have been doing for years."


Given the real-world media's penchant for "if it bleeds it leads" and breeding a culture of fear, it'll be interesting to see the stance of news bureaus "in-world" and how (or if) their reporting style influences society and culture in SL. Makes me wonder whether avatars (ie your virtual likeness within Second Life) can commit crimes...

I was talking with Aki this morning and he brought up a good point: perhaps it would be worthwhile for me to join and do blog reports on some virtual world activity, and maybe even have some sort of trend event here at the agency. I haven't really gauged the level of interest, but with all these big names getting into the virtual game, SL is shaping up to be a big deal. Particularly when it's looked at as part of the larger New Media and user-created trends, I think its even more interesting for our industry.


via Reuters

Trend: Citizen Journalism: People Paparazzi

More harvesting of the power of us all...

The Sunday Times Scotland (http://www.timesonline.co.uk/article/0,,2090-2012393,00.html) has an interview of Kyle MacRae, the founder of Scoopt (http://www.scoopt.com/), the first agency to broker cameraphone pictures for amateur paparazzi and citizen reporters. Six months since it's launch, Scoopt has 5,500 members in 86 countries.
via Picturephoning.com

AKI COMMENT: I understand from other blog links that not too many photos have been actually sold by Scoopt into mainstream press. Which implies that the "official news" brokers ain't going down without a fight (sleeping on the obvious great opportunity in front of them is clearly on the newsdesk docket)! And they likely have no intention to buy from the man on the street unless they absolutely have to - or when they get blindsided and forced to wake up and make a policy for this kind of reporting.

But assume they'll catch on once they realise the potential cost savings of a nationwide freelance network that wouldn't need to get paid until they actually scored a hot scoop. And assume they'll all catch on as blogs continue to showcase the photo scoops and get mass eyeballs without the assistance of the so-called "official news". And then watch the "official news" slowly atrophy to irrelevance and become branded simply as a broadcast outlet for the government and corporate p/r machines...or did that part already happen? I mean, honestly, which would u rather see? - A)The live blog reports and photos from actual participants in a natural disaster? or B)The "official news" caster broadcasting from a nearby hotel balcony "reporting" on the painfully obvious? It would seem that the imperitive of "official news" brands needs to be fast-tracking a solution to aggregate Citizen Journalism into one branded destination. Because the first news brand (mainstream or otherwise) to emerge as owner and "go to" source to sell/present your breaking stories/footage will soon become the only "go to" brand in the consumer's mind for such content (hmmn, sorta like a repeat of what CNN did to the old "official news" guard in the 80's with 24 hour tv news, and watch them sleep now like the giants they slayed before them). Who will emerge as this "go to" aggregator/manager that citizens instinctively submit their hot scoops to? It ain't likely to be CNN or MSNBC, cuz they clearly are disinterested in what real people have to give them (insert condescending pat on the head to us citizen eyewitnesses "leave it to us professionals, kiddo"). And watch this as-yet-undetermined upstart brand actually obtain and break the biggest stories of the year/century, while Anchorman stands around waiting for the official press release to come in. There will be a defining event that will break this tension wide open, and someone will emerge as the winner.

other article excerpts (and more points worth considering as we enter this Age of Citizen Journalism):

>...For all the animosity between celebrities and paparazzi, professional photographers know the rules, where the legal and ethical boundaries lie — even if they sometimes choose to overstep them. The amateurs of Scoopt don’t.

>True, the site offers guidelines and has some safety checks built in: all contributors must be over 18; Scoopt will not accept any pictures of children; nor will it take pictures obtained through what MacRae calls an overt breach of privacy (such as breaking into somebody’s house).

>But it seems almost inevitable that amateurs will overstep the mark. “They won’t think twice about sticking a camera in somebody’s face,” says MacRae. “Is that something I feel happy about? No. But it’s not something we encourage either. "



And more significant, perhaps, are the imitators — check other sites such as The Snitcher Desk (http://www.thesnitcherdesk.com/Home.php), and Spy Media (http://www.spymedia.com/) and Cell Journalist (http://www.celljournalist.com/). Last week Splash, one of the biggest picture agencies in America, announced that it too was starting a service for members of the public who wished to “snap, send and sell”. Take a look at Shutterstock, too (http://submit.shutterstock.com).