Advertising agency of record will pass in 2010. Because consumers have changed.
Ming Chan introduces his background as a silicon valley programmer who went into advertising. Gives a quick introduction video.
A difference since the days of the .COM crash. Prior to .COM crash, companies made things and hoped consumers would like it, and after the .COM crash companies make things they know that consumers want. They are able to listen in to consumers.
A look at the Pepsi Brand. adspend decreased. $142 million spend in 2006 dropped to $60 million in 2008. BBDO kicked out in 2008 (after 40+ years) and replaced with TBWA\Chiat. Pepsi Digital kicked out TBWA\Chiat.
Instead individual brands went to new agencies.
Pepsi Digital –> Huge (agency)
Gatorade –> VML
Sobe –> Firstborn
No more superbowl ads, instead a social media campaign.
Why did Agency of Record dominate the ad industry for so long?
Agencies of Record knew the traditional platforms well. but when it all changed, the AoRs didn’t manage to convince the clients that they knew what was going on. New interactive marketing agencies were popular.
A few examples on how in Ming Chan’s experience whether there will be a new interactive agency AOR. His answer is no. He too believes that integration between traditional and digital is broken. (for example an AOR with interactive and traditional components integrated) It takes too long. “we don’t have time”. “Consumers are demanding things and they want it now. He proposes collaboration between big and small agencies to meet the challenges of speed and responding to the consumers.
