Advertising ain’t what is used to was (a little Southernism I made up). Creation of big selling ideas by highly paid creatives and marketing people, broadcast to millions via TV, radio and print was the ad business. Today, thanks to technology, the ad business is undergoing a diffusion like never before. Digital agencies, though not yet offered a seat at the big table, are new and important players. Google is the most profitable advertising agency in the world and Facebook is hot on their trail. And when I say “mobile advertising” does any one company come to mind? That one is going to be huge…but it’s still to play out.
Buy or Build?
Big traditional ad agencies clearly see the need to offer digital, social and mobile but are asking themselves “Do we buy or build?” Right now they’re doing both: hiring someone smart in each discipline and using them to select cottage industry players who are truly immersed. Better than last year, which was all “Go out and get me a subservient chicken.” Or “Find me those nerds who built the US Weekly Facebook poll.”
I’ve long thought that mid-size agencies were poised to win in this diffuse advertising world, but now I’m not so sure. True, they can more quickly parlay a powerful branding idea into a market-moving integrated campaign but the model may not be extensible.
Bud Cadell is right when he says the old ad agency model is broken. It will take open minds, forward thinking, experience, software, an understanding of brand building, and lots of money to fix the process. I’m of the mind that the successful model is more likely to come out of MDC Partners than WPP. It will be fun to watch though. Peace!