Arnold on ethical marketing - All Comments

re: Is the ad industry about to sink without trace?

marcus evans — Wed, 19 Nov 2008 13:34:01 GMT

I am late into this one so I suspect nobody will ever read this (sigh) however, for what it's worth, here is my twopenneth. Oh come on let's be honest the agency model has been broken for years. As if the demise of media comission based fees wasn't bad enough, during the last recession (in the 90's) clients discovered that they could have pretty much what they got before for about 70% of what they paid before. This saw the fat sweated out of the business and the end of the likes of the Sicillian brothers shopping for the odd clearing bank. Sadly it also heralded the decline of advertising's halcyon days. The CRM and digital revolutions have come to pass (in many cases unnoticed by adland) yet, rather than reengineer the age old model to incorporate new media and communications needs, agencies have largely soldiered valliantly on, struggling to maintain revenue growth and staff cost ratios in the face of an overserved market and declining margins. In short, doing more work with fewer people. Then, when that was no longer sufficient to meet the profits demanded by shareholders, doing more work with not only fewer people, but fewer, more junior people. For those clientside folks reading this (and doubtless nodding sagiciously) you are by no means blameless. What did you expect the result of reduced agency fees might be? Yes initially a saving, but what of the long term effect? Clients allways say that they want "the best talent working on my account" but when it comes to paying for it they are seldom as bullish. What's more, they add insult to injury by unleashing their procurement shock troops, whose key objective is to reduce costs, largely irrespective of any deterioration in quality. And on top of all that, the fleeting tenure of most brand managers and CMO's means that, rather than taking the long term perspective of building and evolving the brand, they adopt a "don't rock the boat" apprach where good is quite good enough thanky most kindly,as they will be on to the next challenge in 18 months. To those clients who genuinely believe that good is by no means good enough, and who make decisions based on maximising potential rather than minimising risk, I salute you as you are an endangered species. Now, as I'm sure you have surmised, I have spent many a year in this fine business and, though synicism is an all too frequent companion these days, I still cling to the abiding hope that some good will come from this next recession. That would be that agencies are forced to truly amalgamate their diciplines and operate in a genuinely integrated way. (Please hum "Pomp and Circimstance" quietly whilst you read the next section) ideas will not be the sole domain of planners and creatives, the ad will not "set the tone" for the rest of the campaign, media planners will work in conjunction with creatives to ensure the media buy actually supports or better yet enhances the campaign, clients push back on work on that is only "good", shareholders appreciate that their investment will not flourish in the hands of junior suits but under the guidance of highly talented, experienced and visionary professionals who don't (and shouldn't) come cheap. So will the advertising industry sink without trace? Absolutely not. Will WPP fold like a pack of cards? Don't be naive. Perhaps a better question would be "Will tomorrow's advertising agency be worth working in?" Not if it continues to prostitue its self to the lowest bidder. So, as an old industry fart, I say "hey lads, hey!" and look back on the good old days with a self indulgant smile. My race is nearly run, but I truly pity you young bloods, whether client or agency side,full of p**s and vinegar who wan't to stamp your authority on the marketing world - unless, that is, you have the grit and nouse to put the thought, creativity, craft, perfectionism and magic back into this business. Lets hope the recession can be the catalyst that sparks the revolution, at least that way all the lost homes, lost jobs and tightened belts will have not been totally in vain.

re: Is the ad industry about to sink without trace?

marcus evans — Wed, 19 Nov 2008 13:31:13 GMT

I am late into this one so I suspect nobody will ever read this (sigh) however, for what it's worth, here is my twopenneth. Oh come on let's be honest the agency model has been broken for years. As if the demise of media comission based fees wasn't bad enough, during the last recession (in the 90's) clients discovered that they could have pretty much what they got before for about 70% of what they paid before. This saw the fat sweated out of the business and the end of the likes of the Sicillian brothers shopping for the odd clearing bank. Sadly it also heralded the decline of advertising's halcyon days. The CRM and digital revolutions have come to pass (in many cases unnoticed by adland) yet, rather than reengineer the age old model to incorporate new media and communications needs, agencies have largely soldiered valliantly on, struggling to maintain revenue growth and staff cost ratios in the face of an overserved market and declining margins. In short, doing more work with fewer people. Then, when that was no longer sufficient to meet the profits demanded by shareholders, doing more work with not only fewer people, but fewer, more junior people. For those clientside folks reading this (and doubtless nodding sagiciously) you are by no means blameless. What did you expect the result of reduced agency fees might be? Yes initially a saving, but what of the long term effect? Clients allways say that they want "the best talent working on my account" but when it comes to paying for it they are seldom as bullish. What's more, they add insult to injury by unleashing their procurement shock troops, whose key objective is to reduce costs, largely irrespective of any deterioration in quality. And on top of all that, the fleeting tenure of most brand managers and CMO's means that, rather than taking the long term perspective of building and evolving the brand, they adopt a "don't rock the boat" apprach where good is quite good enough thanky most kindly,as they will be on to the next challenge in 18 months. To those clients who genuinely believe that good is by no means good enough, and who make decisions based on maximising potential rather than minimising risk, I salute you as you are an endangered species. Now, as I'm sure you have surmised, I have spent many a year in this fine business and, though synicism is an all too frequent companion these days, I still cling to the abiding hope that some good will come from this next recession. That would be that agencies are forced to truly amalgamate their diciplines and operate in a genuinely integrated way. (Please hum "Pomp and Circimstance" quietly whilst you read the next section) ideas will not be the sole domain of planners and creatives, the ad will not "set the tone" for the rest of the campaign, media planners will work in conjunction with creatives to ensure the media buy actually supports or better yet enhances the campaign, clients push back on work on that is only "good", shareholders appreciate that their investment will not flourish in the hands of junior suits but under the guidance of highly talented, experienced and visionary professionals who don't (and shouldn't) come cheap. So will the advertising industry sink without trace? Absolutely not. Will WPP fold like a pack of cards? Don't be naive. Perhaps a better question would be "Will tomorrow's advertising agency be worth working in?" Not if it continues to prostitue its self to the lowest bidder. So, as an old industry fart, I say "hey lads, hey!" and look back on the good old days with a self indulgant smile. My race is nearly run, but I truly pity you young bloods, whether client or agency side,full of piss and vinegar who wan't to stamp your authority on the marketing world - unless, that is, you have the grit and nouse to put the thought, creativity, craft, perfectionism and magic back into this business. Lets hope the recession can be the catalyst that sparks the revolution, at least that way all the lost homes, lost jobs and tightened belts will have not been totally in vain.

re: Does MacDonald’s advertising corrupt our children?

Jenny Hanlon — Tue, 11 Nov 2008 12:48:47 GMT

At last some positive comments about McDonalds...they are made a scapegoat far too often. Well said Chris Arnold!

re: Does MacDonald’s advertising corrupt our children?

Gary Shannon — Thu, 30 Oct 2008 10:45:11 GMT

Oh come on, you really wanted to recommend Planet Rock

Building the Networked Brand « Natalie Donovan’s Weblog

Building the Networked Brand « Natalie Donovan’s Weblog — Wed, 22 Oct 2008 23:06:01 GMT

Pingback from Building the Networked Brand « Natalie Donovan’s Weblog

Is Facebook the new age model business?

Is Facebook the new age model business? — Tue, 21 Oct 2008 18:23:22 GMT

Pingback from Is Facebook the new age model business?

re: Is Facebook the new age model business?

Jacquie Bowser — Tue, 21 Oct 2008 10:34:10 GMT

My vote is for Zuckerberg too! Lets hope he maintains his stance.

re: Is the ad industry about to sink without trace?

Gordon Macmillan — Mon, 13 Oct 2008 08:28:23 GMT

Me too.

re: Data for sale, even if you have a criminal record.

Adam Powell — Tue, 07 Oct 2008 16:30:23 GMT

rage against the regime

re: Is the ad industry about to sink without trace?

CHRIS ARNOLD — Mon, 06 Oct 2008 23:33:51 GMT

If anyone wants to join THE FORUM FOR CHANGE debate to be held in London soon, let me know.

And if you bump into Mr Sorrell, tell him I'm still up for lunch.

re: Data for sale, even if you have a criminal record.

CHRIS ARNOLD — Mon, 06 Oct 2008 23:29:38 GMT

If you have got a fine from Parking Eye (or another company) the general advice from sites on the web is: 1. DON'T PAY (only 50% do). 2. Do not accept the fine - or recognise their authority - their fine is not law so they'd have to seek a private case in the courts. 3. Don't give them any details. 4. Write to the supermarket and boycott them and encourage friends to as well. If it costs the supermarkets they'll soon stop using parking companies.

re: Is the ad industry about to sink without trace?

Evangelos — Thu, 02 Oct 2008 19:07:44 GMT

@ Chris you said : " I want to stimulate a discussion so please feel free to express your views". Well the topic has not exactly set the Internet on fire which says more about the industry than your valiant attempt to raise, air and discuss a real issue.

Ostriches and sand come to mind, so what's new then!

Adding to my earlier musings the attitude which has to come from the top should be stop pushing agendas and start pushing ideas. Perhaps clients will them start listening then.

re: Is the ad industry about to sink without trace?

kevin ferry — Wed, 01 Oct 2008 23:07:45 GMT

I'll repeat that again :)

re: Is the ad industry about to sink without trace?

kevin ferry — Wed, 01 Oct 2008 20:29:02 GMT

No the industry isn't about to sink without a trace but they'll be people who'll drown in their own bullshit.

A quote from Paul Arden: 'The word creative is the currency with which ad agencies operate. Without it there are no agencies.

We all know the damage 'suits' can cause just look at the what happened with sub-prime selliing in the US.

re: Is the ad industry about to sink without trace?

kevin ferry — Wed, 01 Oct 2008 20:15:31 GMT

No the industry isn't about to sink without a trace but they'll be a lot of people in this business who'll drown in their own bullshit.

A quote from Paul Arden: 'the word creative is the currency with which ad agencies operate. Without it there are no agencies'

We know the damage 'suits' can cause just look at the sub-prime in the US.