Revolutionary Measures

The end of the Mad Men?

Advertising agencies have always exuded glamour and excitement. From Don Draper in Mad Men to more modern agencies they’ve combined mystery and the power to change how people think, act and buy. Take Ridley Scott’s 1984-themed Apple Mac launch ad, Saatchi’s 1979 “Labour isn’t working” campaign, widely seen as helping the Conservative party to win the election, or going further back, the WW1 “Your Country Needs You” recruitment poster.

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All of these iconic campaigns demonstrate what advertising can do, particularly when it is turbocharged by the reach of linear television. This has led to ad agencies rising in importance to essentially command the biggest budgets and greatest influence on how brands market themselves.

However, things are changing – fast. Three interconnected factors are upsetting the status quo and causing industry titans such as WPP to issue profit warnings in the face of slowing revenues.

1          We live in a digital world
We used to spend the majority of our leisure time watching a limited number of terrestrial TV channels and reading newspapers and magazines. All of that has changed with the rise of the internet, which now takes a much higher share of our time, and has introduced new gatekeepers such as Google and Facebook into the mix. The adverts that people run online are different – they can’t be as disruptive as during a scheduled TV ad break, or as big budget. While major ad campaigns still run, they are more seasonal, such as around Christmas – and are seen as marketing events, rather than run of the mill campaigns.

2          Consumers want a personalised approach
The internet has also encouraged and enabled us to demand a more personalised experience. We don’t want to be subjected to irrelevant adverts for things we aren’t interested in – and analysing our browsing habits and demographics should give advertisers the ability to segment their audiences and target them in a more individual way. The cost to our privacy is an ongoing debate – as is how capable platforms are of really delivering a personalised approach. All of these adverts tend to be smaller, more focused and therefore lower budget – in some cases even using AI to analyse response rates and automatically tweak copy so that it best reaches target audiences. So less Mad Men, more Metal Mickey.

3          Content is king
Consumers are more suspicious of advertising, and want greater transparency from the brands that they deal with. This is driving a much greater reliance on content across the buying cycle, helping build relationships, and overcome objections on the way. This requires a different set of skills to big budget TV advertising – in fact it is more akin to the copywriting side of public relations, with more information and less overt selling.

All of these factors are shaking up the marketing hierarchy and putting the role of the traditional ad agency under threat. At the top end, consultants such as Accenture are entering the sector, buying up agencies and focusing on providing strategic business advice as well as execution. Digital-first agencies are jockeying for position, and a greater share of budget, backed up by their ability to offer transparency, value and accountability. Brands are even taking key activities in-house, with many companies now employing digital marketing specialists, or even, as in the case of Pepsi, in-house advertising studios.

So does this mean the end of the ad agency, and in particular large international networks? Not necessarily – in a fragmented world clients value talking to one trusted advisor, rather than having to juggle a series of relationships with overlapping agencies. However, to prevent that trusted advisor being a strategy consultancy or digital upstart, agencies need to reinvent themselves quickly, learn new skills and become more of a high-level partner. One way is to move up the value chain. Back in the advertising heyday of the 1980s, Saatchi and Saatchi bought analyst house Gartner. The plan backfired, with the company sold less than two years later at a loss. But the idea clearly had strategic promise. Perhaps now is the time for ad agencies to think big again if they want to retain their power for the long term?

April 11, 2018 Posted by | Creative, Marketing, PR | , , , , , , , , , , , , , , , | Leave a comment

Do we really need Chief Marketing Technology Officers?

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Photo Flickr – https://flic.kr/p/oh7hti

The last five years has seen two, separate trends hit marketing. Firstly the use of technology has skyrocketed as digital channels such as the internet, email and social media have risen in importance. Secondly, marketing has increased in importance as businesses across every sector realise that it is central to winning and retaining customers, reaching stakeholders and engaging with external audiences.

At the risk of showing how old I am, it is worth comparing the tools I had in my first PR job twenty something years ago, and what I have now. I started with a computer (yay!), and it even had email – but that was purely internal to the ten person company I worked for. I could just about access the internet, but it was text based, rather than the colourful World Wide Web we know today. If I wanted to communicate with a journalist I looked them up in a paper-based directory and called them. If I needed to give them information I wrote them a letter, printed and posted it. The same applied to press releases, which were faxed over by clients, laboriously re-typed, faxed back to the client for checking and then sent to a mailing house for distribution. Press clippings were sent through the post by a monitoring agency, and I then stuck them on large boards to show to clients or made up physical cuttings books. And I worked for a technology PR agency, so at the advanced end of marketing at the time.

Now marketers have access to a huge variety of online tools and devices. You can find out information instantly about a journalist through the web and send out a press release to the whole world at the touch of a button through mailing software – not to be advised unless you want to get a reputation as a spammer. Email and social media have replaced the telephone as primary communication channels, while digital marketing technology is available to run campaigns from start to finish. You can target audiences based on what they have searched for, what they have talked about on social media or simply the pages they’ve visited online. Marketing has gone from being behind the curve on technology use to being one of the most active spenders on IT. Much of this has been driven by the move to digital, with a corresponding rise in status for marketing chiefs. Rather than Marketing Directors, often reporting to sales, more and more organisations now have Chief Marketing Officers (CMOs), with a seat on the board and budgets to match.

In 2011, Gartner predicted that the CMO will spend more on tech by 2017 than the Chief Information Officer (CIO). People scoffed at the time, but it looks like this is well on the way to becoming a reality. There are now more than 3,000 marketing technology vendors, all aiming to support agencies and in-house marketers in their roles. This frankly dizzying Tube map-style infographic tries to make sense of their relative positioning, but was probably out of date as soon as it was released, such is the rate of growth and innovation.

I’ve longed argued that marketers in general, and PR people in particular, need to change and embrace technology if they want to continue to be relevant. However they shouldn’t just focus on technology for its own sake, but use it to support what they do – engaging with customers and creating long-term relationships that benefit both sides. There’s no point running an award-winning Facebook page if it doesn’t link to your marketing and business objectives and is measured solely by the number of Likes it delivers.

So I’m suspicious of the latest marketing trend – the introduction of the Chief Marketing Technology Officer (CMTO). It aims to bridge the gaps between stereotypically creative marketing people and the more conservative, risk-averse IT department, finding a middle ground so that marketers don’t make the wrong choices, but aren’t held back by out of date IT procurement practices. Despite its spread in the US – Gartner says that 80% of organisations have someone filling a CMTO-type role, even if it isn’t called that, I don’t believe that marketing (or IT) needs one. It is surely better to get both marketing and IT to talk to each other, and learn how to co-operate, than to essentially try and create a half-way house of someone with the range of skills to talk both tech and marketing. If the CMTO sits in marketing you just end up with a silo-based, departmental approach, rather than looking at the wider picture of what the business needs. Technology is a vital part of every department’s role, but that doesn’t mean it is good for them to operate in isolation. Marketers should continue to improve their tech knowledge, but actually use their communication skills to talk to IT and get their help in navigating the marketing tech maze. Otherwise the risk is that money is wasted and the whole business suffers.

July 15, 2015 Posted by | Creative, Marketing | , , , , , , , , | Leave a comment