collaborating, IPA|ED:three, Mediated

Clients versus Agencies Round One Results: Clients 1 – Agencies 0 … and why some independent mediation may be required

sir-clive-woodward-via-Wales-online

Clive Woodward … Coach supremo – it will make sense later on (pic via WalesOnline)

something of a war or words seems to have broken out on the pages of Adnews of late. on one hand we have David Morgan of Nestlé (let’s call him the ‘client’) and on the other a range of voices including Leigh terry of Omnicom Media Groupe, Travis Day of Vizeum and Peter Grenfell of VCCP (let’s call them the agencies).

here’s a few samples of the debate:

“We’re getting stuck in the middle, stuck in operations, stuck in process management … we’re spending so much time doing things that are not core to our trade of marketing, that it’s taken up our ability to do our trade of marketing. Today, our guys are managing eight, nine, 10 different agency groups – digital groups, media groups, creative groups, strategy groups. It takes up a lot of time to talk to them, coordinate them, project manage them.”

David Morgan, Nestlé director of corporate communications and marketing services, speaking at ADMA Conference two weeks ago

“Managing relationships is easier when agencies are treated as strategic partners … modern agencies of all disciplines are recognising this and pouring significant effort into ensuring that they have a partnership role with all clients; that they are trusted advisor and, most importantly that their reporting and admin are streamlined”

Travis Day, general manager of Vizeum Melbourne

“Agencies can be guilty of getting caught up in their own world … agencies need to open up and be more collaborative with each other. Creative agencies need to not be sniffy because they lead the strategy and media agencies need to not be sniffy because they hold all the money.”

Peter Grenfell, MD VCCP

it’s been an interesting debate not just because it comes at a time when tensions across a whole range of agency / client issues are coming to the fore – remuneration and transparency, the pitch merry-go-round and the protection and respect of IP, and most recently the time and agency effort spent on entering awards – but also because there doesn’t seem to be any kind of logical or constructive response or solution to Morgan’s assertion.

the frustrations on both sides or more than understandable. unfortunately (or fortunately depending on your POV) media went and fragmented. fact.

non of which is new news … back in 2008 I wrote a piece as part of my IPA Excellence Diploma (module three if you’re wondering) in response to the question: what approach should a client take in terms of who does communications planning on a brand? my observation at the time was that the agency response to “media fragmentation … has been twofold. Firstly, diversification into a multitude of different and varied operations; secondly, generalisation …historically all props had to do was scrummage; now they expect themselves to run, catch, pass and lift in the line-out too”

I know … I resorted to a sporting analogy, but bear with me.

I explored the idea that the players (agencies) on the pitch were now so diverse and the necessary roles so specialised that coordination was a full time job (the latter point was perhaps the very one that David Morgan was making at the ADMA conference that sparked this debate). it seemed to me at the time that there were to solutions, the client coordinates or the agencies do, and observed flaws with each:

“One, individual agencies can never know enough about other disciplines to ensure communications planning they derive consider every perspective. It’s like asking prop-forward to plan a game strategy incorporating the nuances of the role of fly-half; the knowledge required is too broad and getting broader all of the time.

Two, Buckminster Fuller’s principle: “If all you have is a hammer, every problem looks like a nail” (as quoted in John Grant’s After Image). A player will never take themselves off the pitch; the very concept that any one agency can comprehensively and without bias write comms planning that excludes themselves is fundamentally compromised.” (source)

I suggested that there was a third way. that some clients may want to employ a coach (and the sporting analogy is complete) who is neutral, independent and can coordinate and allocate roles and responsibilities for agencies whilst the client focuses on marketing and ultimately business objectives.

as Clive himself said:

“My role isn’t to do players’ jobs for them. My job is to ensure that every player performs to their potential and as part of a team”.

Clive Woodward, BBC Interview

that sound’s like exactly the kind of role we need to me.

it’s perhaps not entirely right for every client, and there are flaws – not least of which is that its another outsourced role and relationship for a client to manage; but its a constructive suggestion … and I can’t help but observe that some of the agency response to Morgan’s challenge is at best smart observation of the problem, and at worst a claim (bordering on a whine) that agencies aren’t respected enough as ‘strategic partners’.

I fear that statements like “Creative agencies need to not be sniffy because they lead the strategy” do less rather than more to win the respect of a client who posed a reasonable and clearly present issue to the agency community.

this round’s result: Clients 1 – Agencies 0

we explore this is a ton of depth on last week’s PHDcast which you can enjoy listening to here:

player not working? click here to listen on Audioboo

featured image is Clive Woodward (the coach, gettit) via WalesOnline

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advertising, broadcasting, marketing, mediating, opinionating, television

The Myopia of the 2020 Vision: Why we need a whole load more rational when we debate the merits of Television

Think TV, a marketing initiative of Free TV Australia (the body representing all of Australia’s free-to-air metropolitan and regional commercial television broadcasters), have released the latest in their 2020 Vision series. the episode – the first of series three – see’s industry heavy-weights including Jeff Goodby (Goodby, Silverstein and Partners) and Sir John Hegarty (BBH) discuss (in Think TV’s words) “the importance of broadcasting powerful, mass reaching, messages that connect with audiences”.

its a curious beast. but then communications about communications are always the most interesting of creatures … on the surface this is a straight-forward and very well produced piece of content which talks-up the role and power of TV. but take a closer look and a rather all-too defensive agenda emerges:

some highlights:

TV is till 60% of what we buy because it absolutely is the best place to be able to tell stories and connect people with your brand” … “we try to use video and television as a way to understand our customer … television is the only place you can do that” Kevin Mayer (Volkswagen of America Inc)

“the use of television is fundamental in telling a brand story and engaging with the audience in an intriguing and interesting way” Sir John Hegarty

“the great thing about TV … is that it allows you to go around the rational objections to a product … you have to find another emotional road to take people along so that they don’t think about the rational stuff anymore” Jeff Goodby

“if you’ve got the funding to do an ad, [TV is] still the one place you can get the biggest change in perception and appeal for your brand” Kevin Mayer

“there are two things brands have to do; they have to persuade and then they have to promote. digital technology has been brilliant at promotion, but if you’re not out there persuading, you’re not growing your brand … now, you can only do that with broadcast, because you don’t ultimately know where your audience is going to come from” Sir John Hegarty

“advertising expenditure globally is about $500bn a year. about $200bn of that goes on television. now, end of argument, alright?” Sir John Hegarty

“most of the money my clients spend is still on TV. I know that its very popular to think otherwise and go, you know, ‘what’s going on out there, there must be new things that we should be spending money on’ … and we end up spending on TV, just because it turns out to be the way to start something, the way to keep something going, the way to chance people’s minds” Jeff Goodby

“actually the internet kind of operates as an afterthought of the best TV commercials … people run to the internet to talk about them” Jeff Goodby

“as television evolves and becomes more targeted, I think you’re going to see an influx of dollars back into television because now you’re going to have efficiency and you’re going to have scale, and that’s where I think television is going to really see its second coming” Kevin Mayer

“we’re emotional creatures, and television is an emotional medium … it’s the most powerful selling tool advertisers have ever had at their disposal, and that ain’t changing – not for the foreseeable future” Sir John Hegarty

to say that some of those statements are subjective in the extreme is perhaps a bit of an understatement, and you could argue that’s fine if the piece was presenting itself as the subjective opinions of very respected industry professionals … but its not; Think TV’s description of the piece is “forward-thinking industry professionals reveal how television is rising to meet new marketing challenges with great success” (source) … which I actually think gets us into rather dangerous territory … because the success is pretty much ‘people saw my ad’, or ‘we emotionally engaged people’ or ‘lot’s of people spend lots of money on TV so it must work, alright’ …

now it’s easy to say that it’s “just a piece of video” or conversely that “these are the opinions of respected, and very successful, advertising men”, but don’t forget for a second this is just one grenade in an ongoing battle for communications revenues. this is about where brands invest marketing dollars – budgets that are increasingly under scrutiny by the companies that invest that money. and we’re not talking about spare change … the video’s own stats point out that $200bn is spent on TV – I think we’re going to have to do a little better to justify that than because television is “an emotional medium”.

it perhaps is no co-incidence that we receive this gem in the same week that online ad revenues overtook those for free-to-air TV. according to a report by the PwC for the AIB, (available to subscribers here), for the first six months of 2013 our industry in Australia invested $1,883m in online versus $1,805m investment in FTA TV.

the size of your spend isn’t of course everything. but it does count for a lot.

I like television. as a planner I value the role television can play in a plan. it delivers reach, often cost-effectively, and it delivers that scale quickly. and whilst, unlike Kevin Mayer, I probably wouldn’t describe the future of television as a “second coming”, I am excited by the opportunities that critical mass in connected TVs will bring.

but there’s a dangerous myopia in this 2020 Vision. statements like “digital technology has been brilliant at promotion, but if you’re not out there persuading, you’re not growing your brand” (Hegarty) or “the internet kind of operates as an afterthought” Goodby, do far less for TV’s case than embracing and exploring – say – the possibilities presented by digital storytelling and how they will be possible, with scale, in 2020 would have achieved.

a very wise man once told be to never let my strategy show. so when a video selling the benefits of TV says that “the great thing about TV … is that it allows you to go around the rational objections to a product … so that they don’t think about the rational stuff anymore” … I wonder whether we don’t need a whole load more rational as we mediate this ongoing debate.

featured image is a still from the above video of Volkswagen’s Darth Vader spot in Super Bowl XLV

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advertising, campaigning, integrating, voting

Calling to Action: What Australian Political Parties can learn from Marmite

so in this week’s PHDcast we’re talking Aussie election, which kicked off (officially) this week with a deluge of media and collateral, including these two efforts from the two leading parties, Labor offer us a New Way:

whilst the Liberals are offering us a New Hope:

there will no doubt be other places and spaces where the ads themselves get debated and dissected, and aside from the observation that naming an election slogan after Star Wars Episode IV is just plain awesome, we’ll leave all that to one side for the moment.

there is one difference between the two ads though that I think is important. it’s a really subtle but I think significant difference in the dying moments of each. quite simply one has an embedded call to action and one doesn’t.

help_kevin

Labor’s video has not just a specific call to action in the copy, but an embedded ‘click to volunteer’ button in the video.

in the podcast, Stew (who anchored magnificently) asked me for the advice I would give the comms teams in the election, I commented that at the moment there isn’t one communications strategy, there are several (broadcast, social etc).

the big opportunity it seems to me is to join the dots … and identify very specific roles for comms, with all roads leading to getting people to act … if people act early, cognitive dissonance will kick in and people will act to maintain consistency with their perceived beliefs when they get into the booth.

that the Labor ad gets that its not just an ad may seem to be a simple and indeed obvious distinction, but its a simple and obvious distinction that its Liberal counterpart – nor a great many commercial brands for that matter – grasp. which brings us of course to Marmite, who this week unleashed this awesome little gem:

the predictable and ridiculous backlash has fortunately been met with a truckload of praise for the ad … but the sheer entertainment value that the ad provides aside, the communication is a gold-standard example of two really important aspects.

one, it doesn’t take too much pondering to work out that there is a very specific business issue being tackled here. the team have clearly done their homework and gone beyond ‘consideration’ or ‘like-ability’ to identify a specific issue that they’ve gone on to tackle head on.

two – and this is where I’m making the tenuous link to Australian politics (because its my blog so I can) – there’s a clear and integrated call to action strategy. the video ends with a clear call to action that is an integrated and consistent extension of the creative construct of the ad:

marmite_cta

this then takes you through to an owned-media platform from where you can interact to your heart’s content:

marmite_cta_2

there’s one last aspect for both of these that I think bears repeating, and that’s the importance of cognitive dissonance – the first fundamental assumption of which is that “we all recognize, at some level, when we are acting in a way that is inconsistent with our beliefs / attitudes / opinions. In effect, there is a built in alarm that goes off when we notice such an inconsistency, whether we like it or not. For example, if you have a belief that it is wrong to cheat, yet you find yourself cheating on a test, you will notice and be affected by this inconsistency.” (source)

the really smart opportunity is that by getting people to act within a communications content (for a brand or a political party), you potentially establish and crystallise such a belief / attitude / opinion. when people subsequently come to a supermarket shelf or a polling booth they will – according to the theory – be more inclined to behave in a way that is consistent with said belief.

in short … a integrated, powerful and engaging call to action, far from being the tick-box exercise at the end of the ad, can be the linchpin of the whole communications operation. given the choice, you’ve got to love that.

featured image via Herald Sun

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broadcasting, distributing, mediating, television, viewing

Begun, The Distribution Wars Have: How CBS vs Time Warner is only an opening salvo in the long hard battles to come

so that’s it. we’re at war.

as day three of the CBS / Time Warner stand off dawns, both sides are maintaining that they’re in the right … meanwhile three and a half million Americans are going without Hawaii Five-0.

oh the humanity.

for both sides the equation is clear … for CBS, how much do I need to extract from TW (and other distribution points) to cover with margin the cost of content. for CBS, how much can I justify paying for content given the revenues I can generate via people paying for access to the channels on my network? what else is clear is that we can expect many more of these battles to come.

there are two constants … content and people. and its the changing and evolving relationships people have with content that’s causing disruption, instability, and war: War between the factions that create content and those that distribute it. the current siege of Time is only the current battle in the early years of a war that has a long way to go.

the origins go way back and the early battles have already been played out. battles like the UK’s independent production sector versus the country’s commercial channels, or the ongoing rumblings between music labels and Spotify. and at the start of last year Rupert Murdoch – via Twitter obvs – dramatically accused Google of being the ‘piracy leader’ of silicon valley.

the war will only get hotter from here on in. to understand why you need only follow the money. PWC’s annual Global Entertainment and Media Outlook 2013-2017 uses like-for-like, 5-year historical and forecast data across 13 industry segments in 50 countries to compare and contrast regional growth rates and consumer and advertising spend. this is the picture it paints for the coming years:

“Consumer demand for entertainment and media (E&M) experiences, fuelled largely by the adoption of broadband and connected devices, will continue to grow and we expect this growth to follow a similar trend to GDP development across the forecast period 2013-2017. However, given the shift towards digital media — typically lower priced than its physical counterpart — we anticipate spend to lag behind GDP growth.

The global E&M market will grow at a CAGR of 5.6% over the next five years, generating revenues in 2017 of US$2.2tn, up from US$1.6tn in 2012. Within this overall figure, all three sub-categories — advertising, consumer spend on content, and access — will continue to grow, but at varying rates.”

Source PWC Global Entertainment and Media Outlook 2013-2017

two really – really – important points. one, because of the shift to digital media, spend on E&M will lag behind GDP growth – the pot is shrinking in relative terms. two, whilst spending is anticipated to increase, the future isn’t evenly distributed:

“Consumer spend shifts from content to access: The rapid growth in spend on access means that there will be a shift in the share of overall global E&M spend from consumer spend on content (from 47% of the market in 2012 to 41% of the market in 2017) to consumer spend on access (from 24% of the market in 2012 to 30% of the market in 2017).”

Source PWC Global Entertainment and Media Outlook 2013-2017

shift is spending, in real terms, away from content and into access to that content (spend on advertising is holding stable). we’re getting used to paying not for content, but instead for access to that content. whether its Spotify versus iTunes, or HBO’s Emmy and now Cannes credibility, it’s the distributor-networks that are currently strategically placed to gain the most.

but the thing is that the really big changes haven’t even started yet … there’s still a ton of inertia in TV advertising investment – big brands still, I think overly, rely on TV networks to get 30″ messages in front of people. reach is important, but its a necessity not a strategy for communications planning. brands have played for a long time now in being content creators, but they’re only just learning the power of being their own distributors …

new deals, new bargains, new negotiations … emerging between people and how they get access to content. if the old currency was attention through broadcast interruption, then the new currency is data through increasingly direct connections with people. the war was heating up without most major brands shifting even the smallest fraction of resource from broadcast advertising to creating and distributing content directly to people. the dual consequence – more competition for time spent with content and further reduced ad revenues – will see more than the three-day siege of a cable company.

there will be winners and losers, but perhaps the most notable victors in the coming war will be brands. marketing teams that successfully establish and then maintain direct relationships with existing and potential customers by creating and – crucially – distributing compelling and entertainment content.

cry havoc people … the dogs have slipped.

featured image via AP, and the following for no other reason than because I can 😉

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broadcasting, content creating, distributing, experiencing, phdcast, popping up, television

PHDcast 02.08.13 – its not the ooh laa la edition of the PHDcast as we talk TV, The Power Inside and Magnum Pop-Up

Player not working? click here to listen on Audioboo

morning PHDcast listeners. Nic was in the hot seat this week for the not-the-ooh laa la edition of the PHDcast. bien sur 😉 … awesome job Disco

much of the debate this week was in and around TV watching – how it’s changing and what the implications are, especially for brands. I wrote about some of the aspects of this in my post on Friday, but it’s worth dwelling on a point Stew makes at the twenty minute mark around people watching programmes not channels. I think that’s true but I also think its not quite as clean cut as that, and as the CBS / Time Warner stand-off enters it’s second day – leaving 3 million American’s without shows like Hawaii Five-0 (I know) – it’s clear that there is much more to come as the distribution wars heat up.

also on the cast we got round to talking about the Magnum Pop-Up Experience hitting Sydney. following the success of the store in other cities, the ground floor of Westfield in Sydney’s CBD has for the last three weeks been the latest place to get the pleasure pop-up. you get to design your own magnum … white, milk or dark chocolate plus plenty of toppings, all for a mere $7.

as I say on the cast, it’s a phenomenal example of a brand pulling the trick of landing marketing that gets people to pay for its own existence. and the fact that people are queuing up for it is proof positive of the indulgence for which the brand is known.

Magnum_pop-up Magnum_pop-up_2 Magnum_pop-up_3

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advertising, broadcasting, television

One Screens to Rule them All: why broadcast TV’s comeback is overplayed and how brand content needs to evolve. fast.

two seemingly contradicting reports landed this week which paint very different pictures of the state of play in the evolving world of screen usage and content watching. they both came via Stew … thanks Stew!

first up, the BBC reports the suggestion by Ofcom (the UK’s Communications regulator) that living room TV is “making a comeback”. if a 3% increase in the number of adults who watch their main TV set once a week (91% up from 88% in 2002) represents a comeback, then yes … its a comeback. well done, nice work, props etc.

also this week Omnicom’s (or Publicis Omnicom Groupe’s I suppose) Media Pulse reported a study by GFK which “suggests that millions are moving to the Internet and free over-the-air (OTA) reception … about six percent of U.S. households have completely dropped cable and satellite TV in favor of streaming-only—a trend that’s been named ‘cutting the cord'” (Source).

a new golden age of broadcast, or a digital multi-screen take-over?

both, obvs.

its no secret that screens are proliferating, Australia is at the vanguard of the changes. an Australian Multi-Screen Report from earlier this year from Oztam, Regional Tam and Nielsen indicated that 27% of Aussie homes now have each of the four screens (TV, PC, tablet and mobile phone), up from 16% last year. Smart phone uptake is up 13% YOY to 61%, tablet penetration doubled 2012-2013 to 31% and PVR penetration now sits above 50%.

despite all that though, the same report calculated that time spent with screens are still massively weighted towards TV. the average Aussie watches 92 hours and 29 mins of TV per month, versus 8 hours and 53 mins on the other three devices. TV’s comeback is perhaps overplayed because there’s nothing to come back from … time spent with TV, despite pretty much a decade of PVRability, has remained pretty much consistent.

so what gives? … lots of TV viewing, lots of increase in penetration of new devices, and a whole lot of multitasking and multi-screening. the real limiting factor in the entire equation is nothing to do with screens or even what’s on them … its human attention. it was Kevin Kelly who observed in Wired magazine that “the only factor becoming scarce in a world of abundance is human attention” (source) … it doesn’t take a huge leap to come to the conclusion that the real victim of screen and content abundance will be not brands per se, but those that rely solely on the broadcast interruption advertising model.

more of that on the PHDcast this week, but what all of this points to is the need for connection planning (on screens and beyond) to be done upstream in any brand planning work. integrated content solutions have to quickly become the modus operandi for how we develop communications. broadcast interruption will remain part of that integrated solution for a long time yet to come, but it can no longer be the totality of the solution.

which is why we’ll be seeing a lot more of this in the future.

I’ll leave you to ponder that, and the thought that, far from living room TV making a comeback, its advertising that needs to make the comeback. in the evolving world of screens, only one screen rules them all – whichever one you happen to be watching at any given time. there’s a clear and present opportunity to bridge attention deficit with a new generation of integrated, connected, device-specific content. it’s time for us all to step up to the plate.

featured image via Fast Company

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