Category Archives: Ad Rants

The Inside Line: The Death of Agencies

What with the yo-yoing of WPP, profit warnings, and Sir Martin Sorrell’s career, all in the shadow of the rise of the management consultants, you may be just as captivated by the current mayhem in the advertising agency and marketing industry as we are.

But we’re not sure that agencies are as dead as some people think they are…

We’ve tried to get a handle on it all from a ‘big picture’ perspective in this short episode of The Inside Line with Nick Fawbert from Mutiny Consulting.

Is it really an instalment of The Walking Dead? What do you reckon?

The 70/20/10 Rule for Marketing Innovation

Too often people see innovation as a flash of lightning, striking at random. And too many businesses are afraid to try new things, creating a huge barrier to success.

Clearly inspiration is core to innovation, and new things are scary. But, as strange as it might sound, you can actually plan to be innovative – and protect your marketing investment – with a very simple strategy.

It’s called the 70/20/10 Rule, and it will help you map out all the things you could do with your marketing, into a structured approach that will help drive your business forward.

So how does it work? First, take your Digital marketing budget and divide it into three buckets: one with 70% of the money and two others with 20% and 10%, respectively.

70%: NOW

Your largest investment should be in established marketing programs. Focus on refining activity you have run for several years with a record of success. Right now this is likely to include Google Search, Desktop Display, and Facebook activity – although it depends where you are in your Digital marketing journey. It’s crucial to maintain a strong base to protect your success.

20%: NEW

The next 20% of your budget should go on emerging areas that are starting to gain traction. This is about generating safe learning opportunities. Mobile and Programmatic are hot right now for most marketers, but it should also be about trying new suppliers for activity you are already doing well at. Not every test will work out, but the ones that do will set up your future plans and keep you ahead of the competition.

10%: NEXT

You can think of this final 10% as your marketing insurance. Set the stage for the future by investing in areas you have never tested before. Start small and scale fast. Remember these 10% tests will one day be your 70%. And without investing here you will very quickly fall behind your competition.

Even gigantic global brands such as Coca Cola follow this approach. Wendy Clark, SVP, Marketing for Coca-Cola, gave the below presentation at a McKinsey CMO event recently. She explained how, to be successful today, companies need to employ a test and learn approach. At Coke, 70% of spend funds current proven programs, 20% goes to new and promising trends, and 10% to test completely new ideas.

What’s important in all this is that innovation can have a process. With the 70/20/10 approach it’s easy to protect your success NOW, while finding the NEW and NEXT things you need to stay ahead.

 

Google killed the TV star?

What if Google invested in eye tracking technology free on every TV?

They could do it in partnership with TV manufacturers, and under the auspices of measuring smart TV (read YouTube viewing on TV).

How quickly would this disrupt the TV advertising industry by exposing the TV GRP. People just aren’t watching commercials, we would conclusively discover.

The clear winner in the budget switch that ensues, must surely be Digital channels. And Google the biggest beneficiary.

Now we’re no Google fans here at DIA, mainly because of the conflicting positions they take in the industry on buying, selling, delivery and measurement – yes that’s right, if you use DoubleClick or Google Analytics you trust the same people who deliver your advertising to tell you whether it works or not. Similar conflict for publishers and marketers. But Google has to be admired for the work they have done in simplifying and driving our industry forward.

Investing in a system that could bring down TV might just be the simplest and smartest move it could ever make. And the best for our industry.

Could Google kill the TV star?

10 Things People Who Don’t Get Digital Say or Do

Everyone knows someone who works in marketing, advertising or media, but doesn’t get Digital. It could be a manager, client, or colleague.

At best they’re incompetent, but the worst culprits are the reason big businesses struggle, or even fail.

We asked brands, agencies and publishers across Asia to tell us about the most common problems they experience. The feedback was fascinating, and we think very familiar. Continue reading 10 Things People Who Don’t Get Digital Say or Do