Heard around Advertising Week: “You still call it behavioral targeting?” “Thank god congress is preoccupied with healthcare.” “Don’t order business cards, we’re going green.” “Part of the charm of Advertising Week is that events are NOT all in one place.”
OMMA Keynote - The State of the Agency Business – An Analyst’s View
Jordan Rohan, Founder and Managing Partner, Clearmeadow Partners
It was refreshing to hear Jordan Rohan focused on anything other than lead generation, and his analysis of the agency business seemed on point. He says a confluence of events has created the current state of declining agency profitability. A complex media environment, characterized by “social distraction” and “mobile distraction,” will only help to accelerate this trend because it increases the complexity as people multi-task on top of multiple media usage. In today’s environment, agencies need to act less like a steward of the brand and more like an intermediary to all brands.
Case in point, social media usage is on the rise, but pricing is low:
Facebook $.60 CPM
MySpace $1.36 CPM
…and portal traffic is flat and prices are falling:
Yahoo! $8.44. CPM
Microsoft $9.68 CPM
AOL $13.58 CPM
Innovation in agencies – Risks taken, when successful are considered innovation, yet the economic incentives are not in place for agencies to take risks. Cited RGA work for Nokia and CPB work for Microsoft, Burger King as examples of risks taken and work done across platform that is working well.
Venture capitalists are reluctant to invest in people businesses where assets walk out the door every day. When a people business turns into something that can exist on its own, suddenly the money appears.
OMMA Keynote – How Dunkin Does Social
Frances Allen, Brand Marketing Officer, Dunkin’ Brands, Inc.
“Winning every trip, every day.” Not taking customers for granted.
Social values must reflect brand values. Fostering a relationship with passionate customers, a group defined as much by a sense of common brand values as a love of the products. Relationships take time, effort and commitment. Brands that make investment in relationship over time will win. There will be hard days, yes, but in the end it will be worth it.
Social strategy:
1) Hearts & minds – Facebook “Fan of the Week” and “Coolata”
2) Motivations and behaviors – “Dunkin’ Run” application to order for groups
3) Place and context – Create Dunkin’s Next Donut – (TV, radio, outdoor, online and in-store)
4) Communication
Set realistic expectations.
Perception becomes reality.
Be true to yourself.
OMMA Keynote – Nick Brien, President & CEO, Mediabrands
A marketing revolution: a new art, a new science
We’ve always lived in a social world, but now we have more control, the ability to customize, the ability to create new channels and to connect.
62.5% of people using the Internet globally say they are actively involved in social media.
Social means business transformation:
Social media / awareness
Social marketing / advocacy (sell something, utility)
Social business / reinvention
Agencies continuing to conduct business under reach/frequency models do a disservice to the medium:
1) Kill the hierarchy
2) Engage community power
3) Master the art of response
4) Create content
5) Embrace ingenuity
MIXX Keynote – The End of “Digital” Marketing?
Nikesh Arora, President Global Sales Operations and Business Development, Google
Before it was called a “car,” it was the “horseless carriage.” Before it was just a “teevision,” it was the “color television.” Similarly, during our careers we will just call it “marketing.” Sometimes you don’t realize you are going through a revolution until you step out of it.
1.7B Internet users, 2B mobile users worldwide.
In any new technology, advertising comes later in the cycle:
Technology –> Content –> Users –> Advertising
We’re still in the early part of the cycle in advertising and marketing.
Mattel Barbie television ad in 1959 – 10 years after – cut and paste from radio jingles vs. Audi ad dramatically showing car driving up ski ramp created exclusively for television
1981 – story for newspapers delivered electronically vs. TwitPic of USAirways plane in Hudson
Everything is localized down to you – Android video app combining camera phone to data
New generations of information created by you
Marketing is the new finance, with a sample size of {all}
All advertising is engaging – bidirectional media
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Technology
According to a report from PriceWaterhouseCoopers and the National Venture Capital Association, based on data from Thomson Reuters, venture capitalists funneled $6.5 billion into 906 startups in Q2, an increase of 53 percent over the same period in 2009. The software industry led the way with 229 rounds of funding, but clean tech led financing with $1.5 billion going into 71 deals. Internet-specific companies received $879 million via 212 deals in the quarter. TechCrunch has a good graphic of funding by category and quarter-over-quarter trends.
