The Evolution of the Advertising Agency

This was a summary write up for last month's REBUS that never quite saw the light of day.  A month old, but still completely relevant, check out the recap from what I consider a pretty powerful presentation on the evolution of an ad agency-- specifically Schupp Company.

Evolution, reform, progress, transformation – call it what you want to call it, the advertising landscape has changed.  With every new medium, employees must get smarter and agencies must work harder to stay ahead of curve.  On November 16, Schupp Company opened their doors to REBUS to shed some light on how their agency has adapted to changes taking over the industry and how these changes have affected copywriters, account managers, interactive designers, and media buyers on an individual basis.

Jim Mayfield, senior VP, Executive Creative Director, kicked off Schupp Company’s presentation with a brief background on the evolution of their agency model.  “When we started, everything in our agency was separate, including digital.  There was advertising, direct marketing, sales promotions, public relations, and digital.  Now, all those elements still exist, but they’re all connected together by digital.”  He also touched on a variety of other subjects centered on agency evolution such as the importance of engagement (over simple exposure) and the idea that media is now just as important as the message. 

Next up was Brian McLaughlin, Associate Media Director at Schupp Company.  Talking about his role, he stressed the importance of media planning early on in the creative process and using media as a building block for ideas, rather than just the outlet to carry them out.  Touching on elements like social media and blogs, he stated, “It’s a new world of opportunity that’s not just about GRPs, reach, or frequency. It’s about how brands, media and society work together.”

Sara Bremehr, an Account Supervisor at Schupp was next in line to discuss how her role in account management has changed over the last few years. She stated, “Today, it’s far more important to be a strategic marketer than simply a relationship manager.  There’s tremendous pressure on AEs to be a “Jack of all trades” and quite frankly, to be successful, you must strive to fit that role.”

Chris Douglas, Interactive Creative Director and Anthony Simmons, Senior Creative Director rounded out the presentation by touching on what it takes to be successful in today’s creative environment. Simmons opened up with “Everyone is a writer; but it’s up to actual writers to create successful consumer engagements that provide unique opportunities to start a conversation.”  Douglas finished with the following advice, “Roll up your sleeves, embrace technology, and most importantly, create.  A true creative is always creating.” 

The evening ended with some networking, a play by play of Schupp’s latest on-premise promotion “Bet on Taste”, and a casual tour around the three story office complete with pool table, beer vending machine, and indoor basketball court.  For those in the industry, it’s easy to imagine evolving when the environment alone does nothing but stimulate the senses.

Thanks to Schupp for hosting and thanks to everyone who attended the event.  Stay tuned to the REBUS blog to find out which agency will be hosting next month’s event.

Agency of the Future: Victors and Spoils

Victors and Spoils may be the smartest, most innovative agency in the marketing/advertising industry.  Sure, I envy what they do and increasingly wish that I had been the originator of their agency model, but no matter what their successes and failures bring, I still don’t necessarily think I like them.

Victors and Spoils is the the world’s first creative (ad) agency built on crowdsourcing principles, They help businesses find a better way to solve their marketing, advertising and product-design problems by engaging the world’s most talented creatives- the crowd.  What do I mean by the crowd?  I mean a group of 3,000+ designers who check the Victors and Spoils site every week for new creative briefs to work on on their own, when their time allows.

The most interesting aspect of the agency model is the payout.  Essentially they only have to pay the winning designer.  Sure, they claim to award monetary prizes for 2nd, 3rd, 4th, and sometimes all of the participants, but essentially they choose one piece of work as the winning design. 

Let’s take a look at the most interesting example of their agency at work.  Not too long ago, leading motorcycle manufacturer Harley Davidson dropped their agency of record.  While everyone else in the industry sat by the wayside waiting for an RFP or an announcement of the next agency that would be working with the brand, John Winsor, CEO of Victors and Spoils got busy.  He wrote up a creative brief for the motorcycle brand, posted it on their project site “Squirrel fight,” and drafted a personal letter to the Harley Davidson’s CMO.  In his note, Winsor wrote the following:

Mark Hans–

It looks like you’ve been busy. We noticed that you ended your relationship with Carmichael Lynch after 31 years. Sounds tough. We also heard that you’re not going to put the account up for review. Sounds smart. AOR relationships tend to be expensive and can lack the kind of flexibility that it takes to succeed in today’s rapidly changing culture.

Anyway, it all got us thinking. We love the Harley-Davidson brand (just like most everyone). And we’ve talked to a bunch of our creatives and strategists (I dare say some of the best in the world) in our 1,800-strong creative department, and H-D was also at the top of the list of the brands they most loved. So, instead of going through the typical steps of credential decks and pitches, we thought we’d try something different.

We’re getting to work.

Just yesterday, the Victors & Spoils team did some quick strategic research pulled from public sources and went ahead and wrote a very open brief. Today, we launched it on our simple work-creation platform called The Squirrel Fight ( http://thesquirrelfight.com ). And right now, creatives and strategists from all over the world are working against your brief.

It’s really fun. And we imagine we’ll be getting in hundreds of great ideas in the next three weeks or so. As we start shaping up some of the ideas, we’d love to show them to you and your team. For every idea you want to buy and produce, we’d propose that you simply pay the V&S creative behind the idea a flat fee of $5,000. (We’re confident enough that our creative process will yield great work that we’ve decided to award $5,000 of our own money to the best idea.)

We hope you’ll give us a call. We’d love to show you what our model can do.

John

Originally, Harley Davidson scoffed at the idea, but gave Winsor the go ahead to do what he wanted to do.  Now, about four months later, Harley Davidson signed Victors and Spoils on as an agency of record for their future work.  It cost the agency a total of $5,000.  Truly amazing use of new and existing technologies to break through the boundaries of a traditional agency.

So why the hate?  Essentially it's just a matter of jealousy, but from a design perspective there is a moral issue at play.  The agency has very few salaried employees.  Essentially they freelance everything, and there are a ton of designers working for them that build their book, but also receive no physical reward for their efforts.  An interesting dilemma indeed, but one that I think Victors and Spoils is eager to defend if challenged.

Advertising Isn't Dead, It's Amateur

When radio came out, print was supposed to die. When TV came out, radio was supposed to die. When the Internet was born, TV was supposed to die. The reality is that with every new medium, or adjustment to a medium, new tools become available to advertisers.  Those that claim “advertising is dead” are grossly misinformed, but that’s not to say we shouldn’t be on the lookout.  If we’re not careful, it’s not the mediums that are going to put us six feet under, it’s the people using them. 

This isn’t an easy article for me to write.  With less than a year of honest “industry experience” I wouldn’t necessarily say I have an expert opinion on the matter at hand.  I do however recognize that there’s a problem, and understand the importance of outlining ways in which it can be addressed.  So what’s the problem I speak of?  It’s the people. 

This industry is officially oversaturated.  Simple economics shows that with the rise of small business, entrepreneurial adventures, and massive layoffs increasing the market for freelance marketing professionals, brands officially have too many options when looking for an agency partner.    Add into the mix the gross costs often associated with a new business pitch and you’re looking at a market that isn’t dying, rather multiplying in a manner in which it cannot sustain. 

What’s more concerning is not the increase in competitive business between agencies, but the increasing amount of brands who take it upon themselves to hire an in-house marketing expert to manage social media or community outreach rather than working with an established  industry authority.   I’m not sure where or when it happened, but at some point over the last three years, everyone became marketers.  Hell, nowadays if you know words like Zappos, Twelp Force, and Gary Vaynerchuk, you could most likely ace an interview for a marketing position. 

I know firsthand that this trend is taking over the industry.  I, like many marketing professionals nowadays started out in social media, tweeting, talking, and building relationships for brands in the digital space.  It’s fun, easy to establish credibility, and an entry-level skill set that looks great on a resume.  What brands fail to realize is that marketing, advertising, and media isn’t something that can be handled by someone without actual industry experience.  Chris Brogan’s “Trust Agents” should be on everyone’s bookshelf, but that doesn’t make them a marketer.

I often get caught up using the analogy of a medical professional.  Sure, we can read books on heart surgery, but that doesn’t make us a surgeon.  Same goes with real estate.  Sure, we can read all about it, but until we buy or sell a house, we’re just amateurs with an interest.  It’d be nice if our industry could gain back the credibility and authenticity it once had.  Instead, we’re not only competing with other agencies, we’re competing with the rise of the amateur who will do anything asked of him at a lower price and a lower standard of quality. 

So what’s the answer to the question at hand?  That’s where you come in.  What state do you think the industry is in?  Have you noticed a rise in the amateur, the guru, or the marketing specialist making waves in the smaller segments of St. Louis business?  Leave your thoughts in the replies.

You can follow me on Twitter here.

Why I Blog

A lot of people always ask me different forms of the following question, "Why do you blog?"  Other forms include, "are you still doing that blog thing?", do you still have that website?" or "don't you like work on Facebook?"  The short answer to this question would be, yes, I am still blogging and I do it because I enjoy writing, but I believe the long answer provides a more complete conclusion to the reoccurring question.

So why do I write?  There's a variety of reasons all of which I'll outline below.  The hope isn't to flatter myself or provide a reason for something I enjoy, rather to tell you a little bit more about myself and possibly inspire you to reevaluate blogging and why it may be right or wrong for you.

I'm Not a Great Writer, but I Love to Write

For those that read this blog often, I'm sure you'll remember a time when you've seen misspelled words, mix matched ideas, or a sentence that didn't quite make sense.  I've never once claimed to be a writer, I don't have a bachelors degree in journalism and I know I'm not always on point with punctuation, but unlike most, even most writers, I love to write everyday or as often as possible.  I never let grammar get in the way of a good idea and although I'm not a great writer, I think the more and more I work at it, the better I end up getting.  

I Exist in the Age of the Internet

In the age of the Internet everything is online.  When you go out looking for a job, one of the first thing most employers do is google you.  While I don't have a stat on this at the moment, it's something that I would almost qualitatively guarantee.  When you meet someone at a meeting, if you make an impact, they will most likely google you.  If you meet someone at a bar and spark a conversation, they will most likely google you.  Is blogging a necessary factor in having an online presence?  No.  But it does establish the identity that you want to portray to others and reinforces a sense of credibility often overlooked in casual conversation.  Do most of my coworkers have a blog?  No.  Are they still some of the most successful creative professionals in the Saint Louis area?  Yes.  This isn't a necessary factor, but I enjoy giving friends, fans, and casual acquaintances an opportunity to learn more about me, my thoughts, and my opinions in real-time without having to exert a lot of effort.

Learning From My Readers

Getting users to comment on a blog is one of the toughest pieces of the blogging puzzle.  In a perfect world, I'd want you to go to the comment section below, tell me whether you blog or not, why you're thinking about doing it, or what you think of mine.  Fact of the matter is, it often doesn't happen, but the few times a month that it does (often from fellow industry professionals - thanks Danielle) it is in the form of an inspiring idea, comment, or criticism.  It's opens up a new perspective on an issue, and often leads to new thinking, both of which is invaluable in the industry that I'm in.

Blogging Allows Time for the Interpretation of Ideas

Often when you read something, it goes in one ear and out the other.  When you're passionate about an idea or an article that you've read, blogging about it allows time to analyze the idea and form your own opinions around it.  You'll notice that I'm never simply sharing an article without posing some sort of personal perspective on the topic at hand  .  

Fossilizing My Digital Footprint

You often hear about how the things you put on the Internet will never go away.  In most cases, this is a negative statement (college Facebook photos) but in other cases, this can be a huge benefit.  Everything that I blog about is something that I would encourage others to read.  I'm spreading thoughts and thinking on topics that I'm passionate about now, and plan on being passionate about in the future.  I'm building a positive digital footprint now that will only grow into a bigger and better package as I grow into my professional career.  If I was in Finance, I'd want to have a robust digital footprint outlining my years of experience writing and forming opinions about financial issues and opportunities.  If I was a lobbyist, I'd use my blog to share ideas on the different issues arising in the city and state I was working in, and how I think the community could get in on the action.  Regardless of the industry, having this online reputation could be a huge benefit when the future is entirely online.

DId I get my job because of my blog?  No.  Does my agency get new business when I write blogs for them?  No.  Do I have thousands of fans and followers that retweet, repost, and reply to every article I write?  Most definitely not.  Have I learned a ton, started to form an online identity, and made a few valuable connections along the way?  Most definitely.  Plus, not to toot my own horn, but I have reached a total of over 14,000 views in the past three months.  Not too bad in my honest opinion.

I don't manage Facebook accounts at my job.  I don't write blog articles for clients.  All the tweeting I do is typically done during downtime to actively engage with other industry professionals in the area.  I help clients manage projects on a strategic level for everything from print to digital, radio, to word-of-mouth and work to quantify results through research, rather than just hoping for some sort of radical, unreliable rule-of-thumb.

Would I enjoy getting out and doing something active instead of blogging?  Trust me, I do.  I spend about 1-2 hours a day doing this, but it's often instead of watching television or talking on the phone.  It's a commitment, but it's something I enjoy, and when you're passionate about something, there's always enough time in the day.

I appreciate your continued clicks!  

Places you can find me writing:

Rebus: Saint Louis Advertising Blog for Young Professionals

Schupp Company Blog

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Where You Go, the World Will Know: Facebook Introduces Places

Where are you right now?  Chances are I don’t have to look much further than Facebook to find out.  My friend Marissa is currently at the St. Louis Chinese Christian Church.  A guy I used to go to school with is at the Bouley Upstairs.  Someone else I know is at the Playoff Sports Bar.  Do I care?  Not really.  But it does beg the question: does sharing our location really make the world more social?  

I’ve written a ton of articles about Foursquare and I do believe that it is a social platform for the future.  It has revolutionized the way some people act and will be a great platform for location-based communication and loyalty based incentive programs down the road.  So why did Facebook enter the marketplace?  Because it can.

On the week of August 16, Facebook launched a new functionality called Places.  It’s only available on mobile devices and is used primarily to check in at different venues and share your location with friends and family who may be in near proximity to you. The video below says it best.  (Note the very apple-esque  nature of the video.  I applaud them for the effort.  It sells me with its style).

Now without further adu, the main competitor Foursquare, and the video promoting their service.  (Note the very fun nature of the video.  Not a huge fan, but the service has been around for a while now and it fits the brand and the style of the company).

As an avid fan of Foursquare I won’t lie and say that I welcome Places with open arms.  Luckily however, I don’t think this will change the game.  At this point, Foursquare has a one-up on innovation and ideas for usage.  You get badges, rewards, leave comments, receive promotions, etc.  Trust me, I know Facebook has plans to do all of this and more, and believe me, with the amount of users on the platform, they will do it with ease, but I won’t be giving up on the underdog just yet.  Plus, there’s still a very small minority of people who want to share their locations (ie. moms currently out of the equation).  

Will Facebook places make the world more social?  Maybe.  But it doesn’t change the fact that without a reason to check in, people won’t check in, without hi-speed Internet on their phone, people won’t check in, and without a guarantee that their privacy is protected, people won’t check in.  However, the fact remains: it’s a fun idea with a whole lot of substance.  What I hope for is this: a world more interested in sharing insightful information on particular places.  What I hope for more than that: that people won’t be posting info on their late night trip to McDonalds or their good night’s sleep at the Hampton Apartment Club. 

Here’s to wishful thinking.

What you do you think of Facebook Places?  Are you going to remain loyal to Foursquare?  Will you stay away and keep your location private?  You should leave your comments below.

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