The Rise of The In-House Agency.

Clients are abandoning the needed for advertising and marketing agencies deciding to bring it all in house. But why? This question I think is fairly obvious money why spend missions of dollars a year paying someone else to do your advertising when you can create your own team who you can dictate, to create exactly what you want every time. But looking at this from an agency side beside the fact that agencies need clients to operate do clients realize what they are getting themselves into?

First what is an in-house agency?

An in house agency is usually owned and operated by its one and only client the company doing the advertising. Instead of outsourcing its campaigns are handled by itself. Some advertising may still be directed to outside agencies, but usually on a per-project basis. This has mainly been due to Ad agencies charging a lot of money for projects they don’t know the product or service as well as the in-house staff, and they are split between many different clients. With an in-house agency, the client is getting 100% dedication, no overtime or rush charges, subject matter experts, and employees who directly benefit from the company doing well. It’s cheaper, it’s faster, and these days, it’s way easier to get very talented people to come client side.

Big Companies like Apple and Google are attracting big names from advertising the stigma that was once attached to “selling out” and promoting only one brand has almost gone. Most in house agencies have come into their own winning awards and creating their own identity some of the more famous are

  • Coca-Cola’s Content Factory
  • Best Buy’s Yellow Tag Productions
  • The BBC’s BBC Creative

“Once considered to be the red-headed stepchild of the agency world is now very much legitimate.”

But why are agencies making the big shift?

Cost saving as mentioned is the main reason as well as complete control and flexibility not available with the traditional agency model. Client’s trust toward agencies has been deteriorating with many agencies being investigated for bad business practises and a lack of transparency. But a lack of experience leads to in-house agencies making risky moves that rarely pay off. Pepsi recently developed a campaign encapsulating the don’ts of advertising the Kendal Jenner campaign will go down as one of the worst ad campaigns ever developed being labelled as tone deaf and out of touch the campaign was pulled as fast as it was distributed but the reputation took a hell of a hit. Despite this experts say the in-house model will continue to grow as client look for greater control over its media option.

The rise of the in-house has created a “us verses them” mentality across both traditional and in-house. In house agencies are seen as impure and are disliked as mentioned heavily by traditional agencies this is because the In-house model means

  • They only work on one client, which pays your salary. it’s not a challenging.
  • They don’t have to pitch, or work hard to get your accounts.
  • They work regular 9-5 hours. That’s not real advertising.
  • They don’t do good work. It’s mostly mediocre.
  • They can only attract low-grade talent. The real professionals work in traditional shops.

This view is agreed on in many cases by those who work within a in-house agency but the counter augment paints a picture that is very desirable to most in the industry.

  • There’s a great work-life balance. Who wants to work 18 hours a day?
  • You are working to promote your own products and services.
  • Your campaign success equates directly to your company’s success.
  • You don’t have to keep pitching. You have the work, and can focus on it.
  • You CAN do award-winning work, without the stress and heartache.
  • You have a much faster approval process.
  • You have much more influence on the campaigns being produced.
  • Layoffsdue to account losses are not something to worry about.

Companies that are debating weather they create an in-house agency or continue with their traditional agency, experts insists that creative control shouldn’t be a consideration when deciding,

“Speed to market for new concepts and business models is blinding, novel new strategies and tactics don’t remain secrets for very long. What every company should invest in, to ensure long-lasting success, is a team with a diverse set of creative aptitudes. Anything short of that will not fare well against competition.”

The big shift isn’t new around the world but Australia where the shift is the looming evil in the shadows ready to swallow up any and every client out there. The newest victim to the in house monster in Optus. Yes Agency is now up and running working closely with M&C Saatchi. It come after With Collective dropped the account to work with Foxtel there is talk that this will affect The Works and AKQA who also work on the Optus account.

“Optus will continue to have a significant agency roster but with Yes Agency there will be more opportunities for quick, tactical content. We hope to be incredibly agile in comparison to the traditional agency model.”

This move has cast eyes over other big Australian company as to who is going to be next, has Optus set a bench mark for other Australian companies to move in-house?

Are in-house agencies here to stay?

Simply put yes. The in-house agency model will continue to grow and in a world where clients are tightening their budgets any way that they can. In my opinion the In-house model works if the right talent is found to carry it through. The biggest yard stick is the fact that in-house agencies are winning awards, the American restaurant chain Chipotle is one example where in 2010 they decided to go alone breaking away from their traditional agency, in turn the in-house agency have gone on to win multiple awards. Adage has event created the in-house agency of the year category in their annual award showcase featuring some of the best in-house campaigns the 2017 winner intel’s in-house agency completely changed the brand image brining the likes of lady gaga. The company has stated that the move isn’t only finical that the change to in-house was because they have a more innate understanding of technology.

“We have visibility to all the things people are doing with our technology—how it works, and how to apply it—that an external agency can never have. Being on the inside lets us stay on top.”

Within a changing world the rise of the in-house agency is expected. Where it stops know one knows where will it end? How big dose a company need to be before it takes it advertising needs in house? These question will most likely be answered over the next few years but it is something that needs to be watched by the whole industry.

Reference List

https://www.thebalance.com/the-in-house-advertising-agency-model-38544

http://www.mbaskool.com/business-concepts/marketing-and-strategy-terms/12645-in-house-agency.html

http://adage.com/article/special-report-agency-alist-2017/intel-2017-house-agency-year/307608/

http://www.adnews.com.au/optus-unpacks-yes-agency

http://www.adnews.com.au/news/optus-launches-in-house-creative-agency

https://www.marketingdive.com/news/the-pros-and-cons-of-an-in-house-agency/440767/

 

 

 

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Is David Ogilvy the father of advertising?

There have been countless milestones in the world of advertising, record-breaking campaigns world changing technology advancements and people who change the way in witch advertising is perceived and delivered. David Ogilvy is an undebated father of advertising, he is considered to be one of the world’s greatest copywriters. But why is he?

Ogilvy famously send around a memo to the founding partners of Hewitt, Benson, Ogilvy and Mather. Saying

“Will Any Agency Hire This Man?

He is 38, and unemployed. He dropped out of college.

He has been a cook, a salesman, a diplomatist and a farmer.

He knows nothing about marketing and had never written any copy.

He professes to be interested in advertising as a career (at the age of 38!) and is ready to go to work for $5,000 a year.

I doubt if any American agency will hire him.”

But this the story of the of David Ogilvy he dropped out of Oxford become a kitchen hand in a Paris restaurant became a door to door salesman joined the army during world war 2 and then became a farmer before becoming an account executive at a London based agency where he convinced them to send him to New York where he latter founded his own agency which is Ogilvy and Mather the tenth biggest agency witch we all know today.

But this alone is what is special about David Ogilvy it is his approach to all things creative. Ogilvy in my opinion was on the forefront of what is now know as user experience, it was his mission to find out all the information available to him about the product and who is buying the product that molded the way in which an ad was written the way it looked and the way in which it was delivered.

If you have all the research, all the ground rules, all the directives, all the data — it doesn’t mean the ad is written. Then you’ve got to close the door and write something — that is the moment of truth which we all try to postpone as long as possible.”

Ogilvy founded the way that information and research are used to create successful campaigns he used it and every way he could, he let the research shape decisions about content.

Ogilvy lead the way of information-rich, “soft sell” ads that didn’t insult the intelligence of the prospected consumer. For example, the Guinness guide to oysters an early form of native adverting. Today we look towards Ogilvy’s successful advertising campaigns to learn how to persuade prospects, influence readers, and create memorable, evergreen content.

“In the modern world of business, it is useless to be a creative, original thinker unless you can also sell what you create.”

 Ideas that are Clever don’t sell products and services. Original thinking dose Ogilvy sates that if you aren’t thinking about connecting with your audience, building trust and selling your products or services when you sit down to write copy or create a campaign, you need to re-examine your motivations.

“There isn’t any significant difference between the various brands of whiskey, or cigarettes or beer. They are all about the same. And so are the cake mixes and the detergents, and the margarines… The manufacturer who dedicates his advertising to building the most sharply defined personality for his brand will get the largest share of the market at the highest profit.”

Looking at famous campaigns from David Ogilvy his method of research and original thinking is made abundantly evident. It can clearly be seen the man in the Hathaway shirt campaign, when the print ad is broken down and you think about the product, the thinking behind the ad and the way in which it is delivered is genius. The product is a business shirt; think of modern advertising there would be no cleaver way that this would be delivered. The advert would show a model in a shirt maybe with some fancy lighting with a background the ad would state the type of shirt, sizes available and price. Ogilvy researched his consumer and found an original visualisation of what a Hathaway shirt is to the people that were it. The ad is simply a model in a shirt, but the model isn’t a good looking young man as it would be traditionally, it is the actual target audience a middle aged business man all he add was a eye patch that has no reference to the shirt or event the company behind the Hathaway shirt but people stop and look at it they become curious about the product and end up buying it.

The same thinking can be seen across all famous campaigns he doesn’t simply sell the product to the consumer he makes the consumer curios about the product lets the story with in the ad to the work. This creative flair along with tireless research translated directly to results, the Ogilvy Rolls Royce campaign which he tiredly researched to find a consumer truth which inturn become the head line of “at 60 miles an hour the loudest noise in this new rolls Royce comes from the electric clock” Ogilvy spent a total of $25000 on the campaign the next ford based a multimillion dollar campaign to make claims that their luxury car is better through the perfect combination of original thing and research he was able to create a campaign for Mercedes, resulting in their market share in the US to grow from 10000 car a year sold to 40000.

Ogilvy’s adverts are timeless; they are designed to last not the timeline of the campaign but to outlast the company behind the ad itself. Look at the camping the Ogilvy was a the forefront of the repositioning of dove a soap like any other but positioned towards woman with dry skin that “dove creams your skin while you bathe” This line may no be still used as the company slogan but it a line still in the minds of their customers and launched the company to where it is today. Ogilvy leaves a legacy of two main ideals for agencies to follow the first is break the rules secondly do your research there is no point of creating something that doesn’t speak to the right consumer and sell a product or service. I safely can say in my personal opinion that David Ogilvy is indeed the father of advertising I know that this can be debated but its hard to think where we may be today if he hadn’t decided to venture into the industry at such a late stage.

Life is a Pitch

Pitching is an interregnal part of agency life, it’s essential for the growth of a business but can also lead to the downfall of agency. Pitching has been around since the birth of advertising with some people thriving on the chase and pressure. The process is quick, but not easy with long hours blood sweat and tears pored into a pitch, there is often a massive benefit gained from pitching but the challenges that can be faced can sometimes outweigh the need or want to pitch.

The process begins with a pitch being called this can be done a number of different ways, through a pitch consultant where they will approach agencies on behalf of a client, or the client could approach the agencies themselves. Once the client has decided who is going to pitch a RFP is issued. It outline’s what needs to be done, when it needs to be done by, and other information that prospective agencies need to know. Some may go into some detail about the target audience, the product or service being advertised, and even the budget, depending on if the client wants creative work or not (Sugget, P. 2016).

An agency faces a number of challenges when a pitch is presented. The first and most obvious is weather the agency should actually take the time to pitch, the pros and cons need to be weighted up by the agency, (is the opportunity presented worth it?), a lot of time and effort is put into a pitch, (is it realistic that the agency can actually fulfill what the client is after if the pitch is won?). But if all the challenges are meet the opportunities for the agency can be huge with an potential increase in profitability as well as showing off to the world what they are capable of.

After an agency receives a pitch and agrees to go ahead with it the agency heads chooses a team. The team that will continue with the client after the pitch is won. The elected account team will craft an internal creative brief for the creative director and the art director/copywriting team who will be working on the pitch. When both the account team and the creative director are happy with the work, the agency will throw its weight behind it, creating mock-ups of ads and websites, and potentially shooting some material specifically for the pitch. If the agency was lucky enough to receive a pitch fee, this is where the money will be spent (Sugget, P. 2016).

Some agencies will be tempted to use their crack pitch team for every pitch that is on offer, but the client will want the team that is presented to them to be the one that continues with them. During a pitch the team that is working on it wouldn’t be able to work on much else, meaning that the biggest issue faced by the agency is who to get to work on the pitch without annoy existing clients, the last thing that an agency wants to do is lose a client while on a pitch.

Once the details have been ironed out with all work finalised, mockups complete and everyone is happy with it they Practice, then practice and probably practice again. The agency will make sure everything is right. They will bring in research to support their ideas. They will have boards made that look stunning. (Sugget, P. 2016).

This is where the rubber meets the road for agencies will the pitch be cohesive will everyone be on the same page when it comes to the overall idea this is probably the biggest challenge but also the biggest opportunity if details need to be ironed out. If all the previous steps have been followed preceding this, then there shouldn’t be any problems.

  • The actual pitch itself usually consists of:
  • Thank the client for the opportunity to pitch and introduce your team.
  • Profile the target market for the advertising campaign and present any market research that you have carried out.
  • Present the creative proposals for the campaign (if asked for by the client).
  • Present the media proposals for the campaign.
  • Provide the client with a proposed budget for the campaign,
  • Questions

(Linton, I. 2017).

During the pitch there are countless challenges and many opportunities that can be encountered. The main challenge would be if the client decided during the pitch that they just don’t like what has been put forward what can be done well if there isn’t any think else to be presented then not a whole lot. The biggest opportunity is being able to show off what your agency id capable of.

After much deliberation and an agonizing wait, the client will let the winning agency know who they are, and tell everyone else they came second. The client will take into account many factors, including price, distance, personalities, agency culture, and capabilities. A challenge that may be faced in this stage is if they like the work from another agency better, it’s not uncommon to see that surface anyway (Sugget, P. 2016).

Once the pitch is won, the work comes into the agency, and the real work begins. Now, things get a little more down to earth. The winning pitch may have been stunning, but now the client wants to see a more realistic version, without all the bells and whistles. The challenge faced here is what the client wants changed who is going to lose out the most, will they will ask for things to be toned down creatively? Will they ask for smaller budgets? Very rarely does the work that won the pitch make it to the printer or TV screens untouched. But this is also an opportunity to put the agency to the test to see what your teams are capable of.

And now, that agency has the client on its roster. Until it becomes the incumbent with a fire about to be lit underneath it and the circle begins again (Sugget, P. 2016).

For a client to make a final decision on which agency they will use for all their advertising needs I don’t think there is a better way other than an agency presenting their ideas to the marketing team.

Although I think there is a way to streamline the process so there isn’t five or more agency pitching against each other. My idea revolves around the comparing system where a client can enter a criteria they want fulfilled. Do they want award willing effectiveness or amazing media placement? A short list of two or three agencies is compiled where the client can then send out briefs resulting in a traditional pitch. I don’t think there is any way around pitch I think a client needs to see how a agency will handle pressure, they want to put them to the test, see how they will approach the marketing challenge see if they are on the same page.

References

Linton Ian. 2017. How to Make an Advertising Pitch | Chron.com. 2017. How to Make an Advertising Pitch | Chron.com. [ONLINE] Available at: http://smallbusiness.chron.com/make-advertising-pitch-19167.html. [Accessed 01 March 2017].

Sugget Paul. 2016. The Balance. 2017. What Exactly Is an Advertising Pitch?. [ONLINE] Available at: https://www.thebalance.com/what-exactly-is-an-advertising-pitch-38448. [Accessed 01 March 2017].

 

 

 

The Power of Social Media

How dose someone think to do a campaign that looks nothing like a campaign. how can dose a client even sign off with a campaign that is designed to go viral with the risk that it wont go viral.

Well the French did exactly that. The campaign by BETC Paris is an amazing example of how social media influences people and how unobservant those followers are. If you don’t know the campaign the basic background it that a insatrgram page popped up with a good looking 25 year-old French lady gallivanting around Europe having that time of her life racking you tens of thousands of followers in the process with comments of admiring fans wanting her life style.

The page ran for a few months before it was reveled that the lady in the pictures was an actor but what they also revealed was that in every single picture which was posted daily she was holding a alcoholic drink usually wine bringing up the bigger issue to do with alcoholism and how it can affect any one no matter age or social status. The revel was posted around the would with shocked fans across the glob and a lot of admiration to BETC Paris and the genius behind the campaign

 

Check it out below:

 

In my opinion this is a massive game changer in the world of social media and how advertising across social media will change. I also think it’s a massive insight into the world of what people will trust as this would not have been effective it was based around a brand because it didn’t seem at all scripted the client allowed the agency creative freedom letting them post what ever and when ever they wanted making the campaign human.

Don’t Be The Asshole

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This is the best ad of the year in my eyes! This would be a creative directors, account directors, CEOs wet dream to have a creative team to come up with this masterpiece.

It has absolutely everything that an ad could want evoking not just one but two emotions making you piss your pants and ball your eyes out in the same ad is something I can only dream I can do in the future. It passes on the message so effectively it is scary, cast perfectly showing exactly how you will help people in the unfortunate circumstance that you fall from the perch a little early.

The tagline of “even an asshole can save a life” …… just give them a Cannes lion now! Should a be a bit worried if I feel as though that is speaking to me directly. Just every small scenario showing the length that he goes to to be an asshole is incredible my front runner is hands down him giving the rest of his cigarette to the kid with the bike closely followed by him throwing loose change at the stripper.

If you haven’t seen it do your self a favour:

 

The Olympic Champion for Advertising Is….

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These Olympics the IOC changed some of the rules around advertising around the Olympics it used to be that a companies had to be a official sponsor in order to show ads during the games but this has changed with all (well those who can afford it) can advertise as long as they don’t mention the games in all shapes and forms and the ads had to be complete before and on television channels before the Olympics started to air.

Telstra wins a Steven Bradbury style gold for taking full advantage of a changed scenario. They win on so many fronts its sought of annoying

1: they are during every single ad brake across all of channel 7s coverage it is impossible to escape.

2: they partnered some how to become the telecom partner of 7 so even though the telecom partner of the games was given to Optus (I actually have no idea what a Optus Olympic ad looks like), the right to channel 7s Olympic app was given to Telstra with Telstra customers cashing in on free app severe

If there is going to be a complaint from Optus about Telstra doing this is another thing but I thought since one of the few ads I actually remember seeing in the Olympics here is the Optus ad to refresh your memory.

 

Publicity Stunt or Planned Advertising

Has the way in which movies are advertised changed? I ask this because there have been a number of movies released in the past few years that create a whirlwind of controversy either just before there release date or in the final touches stages.

Take the biggest grossing R rated movie released this year Deadpool besides the amazing ads that for the first time didn’t give away the best parts of the movie, There where a number or controversies surrounding the movie. they didn’t stop people wanting to watch the movie intact the opposite happened they promoted the hell out of the movie  first was the “leak” where a part of the film was leaked online driving fans crazy in a good way, secondly was producers coming out and saying that the rating of the movie would be changed to PG driving fans and critics nuts sparking online debates and polls.

All of this created so much antistipation for the release but can this be the driving fact that the movie became the success? can this be seen as advertising? yes it could be seen as a publicity stunt but how much is planned and will we every know?

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Awards for advertising, why is this a thing? 

The Cannes lion awards have be announced and I though it fitting that I air my opinion on awards in advertising

Awards for making a company money yeah Ok. I understand music awards movie awards and even awards for television but awards for advertising, firstly the whole concepts behind the adverts while original and some a sill unbelievably good they are dictated by there clients, no client is going to go to an agency and go here is 10 million dollars and the product I want to advertise go for your life there is always going to be a strong hold by a client. (Although saying this I really hope that one day I produce a campaign worthy of a Cannes lion or something similar). In my personal opinion advertising awards should be similar to trop fest where given a generalized brief or even briefs and a time line is given and each agency produce an advertising campaign they can do what they want with no client limits spend as much or as little money on the ideas free to develop what ever the agency wants.

 

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Of Course I Do

These Aldi Ad’s are some of my favorite on television. The whole series works really well with inanimate or otherwise unintelligent objects compare two products on of course being from Aldi and the other a competitor.

I love this one in particular because it seems almost natural in a sense that the bear has been asked these questions a million time and doesn’t actually care about the products just ant his 15 seconds of fame over with

The production of theses ads is really well done with one simple shot yet telling a complete story that rises almost as many questions as it answers.

Although the one burning question is how do they get away with a blatant product comparison say basically well you could speand $5 dollars more but why would you when you can get the exact same product. It wasn’t till after viewing it a few times that I saw the disclaimer its hard to believe that the can cover them against defimation and copyright law suits.

 

Need A Plan

These Ad’s even though don’t effect me directly when I saw them I still had an emotional connection. the RFS brought these ads’ out to show the dangers of not having a plan during bush fire season.

guilt is one of the biggest plays by advertisers, and why not it worked for the catholics. the guilty factor worked in this campaign because not having a plan was one of the main reason the black Saturday bush fires where so tragic, people simply left it too late to leave their homes so when the fire blew through and people decided to leave it was simply too late with roads blocked and no way out a lot of people sadly lost their lives.

I think they are effective although they follow the traditions of doom and gloom found in most government based Ad’s.this one worked well with introducing black British style of  humour to the target consumer that might have a second thought when a loved one brings up the topic of making a plan for the future.

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