Not Being Advertised How The Advertising Business Has Changed Over Time

Not Being Advertised...How the​ Advertising Business Has Changed Over Time
There are three words which often bother me .​
I​ remember when…. .​
When my peers and friends use them,​ I​ always feel like telling them to​ switch gears and think about today and tomorrow,​ not yesterday .​
They seldom comply .​
Now,​ having been invited to​ write about how the​ ad agency business has changed since I​ was in​ it​ on​ a​ day-to-day basis,​ I​ suppose I​ have to​ remember when .​
If you​ remember when Channel 10 did a​ live,​ (LIVE!) daily,​ (DAILY!) Network (NETWORK!) show,​ you're probably as​ old as​ I​ am.
If you​ remember when ad agencies relied heavily on​ Type Shops for fast,​ efficient service,​ you​ are probably in​ your forties.
If you​ remember when word processing people were called typists and when they used a​ thing called carbon paper,​ you​ are probably in​ your fifties .​
(Side effects from typewriters and carbon paper were messy erasures and blue-stained fingers.)
And if​ you​ think FedEx,​ cable TV,​ B101,​ All News All the​ Time,​ Video Conferencing,​
and Satellites have always been there,​ I'm jealous for not being your age .​
In the​ ad business,​ the​ only thing that's certain is​ that what's certain today will not be certain tomorrow.
Which brings me to​ the​ agency business and some significant changes that have taken place in​ my career-lifetime.
Whereas client/agency relationships changed focus from print to​ broadcast over many years,​ the​ changes now move with lightening speed .​
For example,​ when UHF television came along,​ it​ was big news because viewers in​ this market could see six stations instead of​ three .​
Now,​ who can keep track of​ all the​ video available with cable and internet access for movies and on​ and on​ .​
How will agencies have to​ adjust? Who knows? We do know that the​ media challenges that face agencies are already causing several significant changes .​
First,​ some are not fighting the​ media wars .​
Many are farming out their media requirements .​
That means they are actually trusting another organization to​ collaborate directly with their clients .​
That's something that was unimaginable just a​ few years ago.
Second,​ many of​ the​ larger agencies now have very robust Media Divisions and those divisions are involved with sales promotion,​ sponsorship and even some creative tasks.
Many of​ them actually feel like full service agencies if​ you​ study them closely.
Third,​ agencies must take steps to​ become more aware of​ accountability as​ it​ relates to​ their clients' spending .​
Welcome,​ Internet Marketing .​
Just a​ few years ago,​ many marketing folks started thinking about one-to-one marketing .​
Today it's becoming an​ absolute necessity for agencies to​ understand Search Engine Marketing,​ Optimization
and other terms which were virtually unknown just five years ago.
Those agencies which relied on​ creative radio ideas no longer have a​ fairly simple pallet to​ deal with .​
AM radio was dominant and the​ change to​ FM dominance took many years .​
Now we have two major factors which already influence how radio is​ utilized by the​ consumer: Satellite and a​ little phenomenon called IPod .​
Cost per thousand is​ still important but specific,​ measurable results are more important .​
That factor is​ pushing today's agencies into thought processes which require greater strategic ability as​ well as​ a​ keen understanding of​ how to​ meld communications for image/brand with clients' demand to​ see sales figures climb as​ direct ways to​ measure ROI .​
Whoever succeeds in​ finding the​ best way to​ turn IPod users into a​ demographic group that's available as​ media will harvest big rewards.
Think about how Internet advertising has changed and is​ changing marketing strategy .​
That new media increased by 21% in​ 2004 .​
It's projected to​ take seven billion dollars away from traditional ad budgets in​ 2018 .​
Soon,​ it​ will be traditional .​
Maybe it​ already is​ .​
Agencies must take a​ leadership role in​ finding optimum ways to​ apply those funds.
There are other important topics and terms today which might not have existed for agencies in​ the​ past but are core factors today and are likely to​ become even more important: Broadband,​ Customer Relationship Management ,​ Video on​ Demand,​ Paid Inclusion,​ Latino Media,​ Collaboration Extranets,​ Streaming,​ High-Definition and even IMAX theaters.

More and more advertisers of​ all sizes are trying to​ save money by taking routine responsibilities away from agencies and doing them inside .​
Many agency executives believe that their real value for clients is​ their business knowledge and their strategic capability along with their creative execution .​
These trends in​ thinking drive change and challenge for agencies .​
Not only are there fewer employees per million dollars of​ billing,​ but there is​ a​ large gap between well paid and not-so-well-paid agency employees.
Believe it​ or​ not,​ there was a​ time when,​ on​ average there were ten employees per million dollars worth of​ billing .​
Today it's one and a​ half employees per million .​
Who knows where it's headed? One of​ the​ country's fastest growing agencies,​ Kalan Thaler Group reports $600,​000,​000 in​ billing with only 140 employees .​
Yes,​ they must work very hard but they also must be smart,​ creative and,​ as​ they say,​ cutting edge.
Why the​ salary gap mentioned above? Because strategic support is​ hard for clients to​ find and comes in​ expensive packages .​
Therefore,​ the​ agency which probably has the​ best chance to​ retain its client is​ the​ agency whose client trusts the​ recommendations that come from the​ agency .​
Translated,​ that means smarts,​ strategic thinking and courage on​ top of​ the​ usual high expectations about effective,​ wonderful creative solutions .​
Translated further,​ that means expensive brains at​ the​ agency,​ a​ salary gap between those brains and the​ other folks as​ well as​ fairly low salaries beneath the​ top thinkers .​
In a​ way,​ the​ CEO of​ an​ ad agency is​ now responsible for managing salaries in​ the​ same way major league teams do it .​
They place the​ big dollars where the​ big benefits are,​ in​ star performers .​
In summary,​ the​ only way to​ view changes in​ the​ ad business is​ pretty much the​ same as​ changes in​ other businesses .​
Lee Iacocco,​ of​ Chrysler fame,​ once said ,​ Change or​ die! That's true of​ our beloved ad business .​
It always has been .​
It is​ now .​
And it​ always will be .​
Figuring out how to​ be ahead of​ the​ curve is​ the​ challenge of​ today's agency CEO .​
I​ guess I'm glad that I​ no longer have to​ live up to​ that title and those expectations .​
Instead,​ I'm doing my best to​ provide agencies with ways to​ get along with fewer employees and,​ at​ the​ same time,​ to​ give clients what they need and want: easy collaboration,​ accurate communications and,​ above all,​ efficient and effective use of​ their most valuable assets,​
brains,​ creativity and time.
Not Being Advertised How The Advertising Business Has Changed Over Time Not Being Advertised How The Advertising Business Has Changed Over Time Reviewed by Henda Yesti on December 24, 2017 Rating: 5

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