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or Lessons From a Day in LA Carlton Associates Incorporated Day in LA Sidebar MADISON + VINE Newsletter launch Ad Age Commerce & Content Beverly Hills Hotel Room for 100 people Carlton Associates Incorporated Day in LA Sidebar MADISON + VINE Steve & Rance Turner Warner CAA GM Omnicom 400 people Carlton Associates Incorporated Some Quotes MADISON + VINE “The advertising model has changed from intrusion to invitation.” Rance Crain “TiVo is the Anti-Christ.” Jamie Kellner “What’s the measurement for all this?” Bruce Redditt “Talent won’t pimp for advertisers.” Peter Arnell “Who pays the bill?” Steve Sturm “This is the wild west, there is no financial model.” Mitch Kanner “If a new model isn’t developed, the old one will simply collapse.” Steve Heyer Carlton Associates Incorporated Let’s Go Back to 1950 Advertising was print Billy & Sue paid for subscriptions They read the ads they wanted to read Radio was free, but its role was small Carlton Associates Incorporated Along Came Television A new proposition… You give us your time, and we’ll give you free content! Carlton Associates Incorporated The Essence of the Deal To Billy & Sue, their money was more valuable than their time Carlton Associates Incorporated But, They Were Pretty Smart… They immediately developed mental advertising filters RECEIVED ADVERTISING TRANSMITTED ADVERTISING Carlton Associates Incorporated Where Billy and Sue Got Their Commercial Information PR RADIO MAGAZINES DIRECT SALES NEWSPAPERS DIRECT MAIL TV OUTDOOR PROMOTIONS LITERATURE WORD OF MOUTH ETC., ETC. Carlton Associates Incorporated But, As Time Passed That Changed PR RADIO MAGAZINES TV DIRECT SALES NEWSPAPERS CABLE DIRECT MAIL OUTDOOR INTERNET PROMOTIONS LITERATURE WORD OF MOUTH ETC., ETC. Carlton Associates Incorporated And, Billy & Sue Changed, Too Now, their time had become more valuable than their money Carlton Associates Incorporated They Also Questioned Why They Should do The Advertising Filtering? GONE A New Proposition… Let the Advertiser do the Filtering!! Carlton Associates Incorporated What Are Billy & Sue Expecting? Understanding One to one marketing Message coherence Naturalness Respect Carlton Associates Incorporated The Essence of This New Deal is Mass Customization of the Commercial Message The Key to Billy & Sue is… PERSONAL RELEVANCE Carlton Associates Incorporated So, What Does All This Mean For Advertising Agencies? Carlton Associates Incorporated First, Some More Quotes MADISON + VINE “We are talking about nothing short of reinventing the business of marketing communications, from an intrusion to an invitation based model.” Scott Donaton “I don’t want to live through this period of disruption.” Agency CEO “It is time for ad agencies to stop whining and get creative.” David Lubars “Ad agencies can be the quarterback, if they can get over their fear.” Steve Heyer Carlton Associates Incorporated Ad Agencies Strengths Understanding of the consumer Weaknesses On the defensive Understanding of brand experience Stuck in the 30 sec. spot/colorful ad rut Client relationships Poor collaborators Skilled aggregators Caught in the FWMTS trap Diverse talent Fear Carlton Associates Incorporated What To Do? 1. Consumer focus 2. Brand architects 3. Coalesce the outcome 4. Holistic ideas 5. Business creativity Carlton Associates Incorporated 1. Consumer Focus Ad agencies understand the mind of the consumer better than any other player This is the unique strength to leverage Carlton Associates Incorporated 2. Brand Architects Like a great building, a great brand needs a skillful architect This is the position that ad agencies should be moving to fill Carlton Associates Incorporated 3. Coalesce The Outcome No resource can do it all alone, not even ad agencies. And marketers can’t do it themselves, either Ad agencies need to develop skills in coalescing diverse talent and resources Carlton Associates Incorporated 4. Holistic Ideas Great ideas alone are not enough. Today, they must be seamlessly aligned into the entire brand experience Ad agencies need to create powerful ideas that integrate well with the whole Carlton Associates Incorporated 5. Business Creativity Today’s business model is dying. A new one must be invented. This will take an enormous leap by all Ad agencies that lead in this can survive. Those that don’t will be marginalized Carlton Associates Incorporated And Finally… Accept the fact that reliance on 30 second spots and colorful ads and other stuff as the backbone of the ad agency business just won’t work anymore Carlton Associates Incorporated The Good News The consumer has more money than ever to spend, and is looking for relevant messages about the brands that will fulfill their lives Carlton Associates Incorporated Oh, And By The Way… If You Haven’t Noticed, Billy & Sue Have Changed Their Names, Too! Copyright 2003 Carlton Associates Incorporated Carlton Associates Incorporated