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or

Lessons From a Day in LA

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Day in LA Sidebar

MADISON + VINE

Newsletter launch Ad Age Commerce & Content Beverly Hills Hotel Room for 100 people

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Day in LA Sidebar

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Steve & Rance Turner Warner CAA GM Omnicom 400 people

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MADISON + VINE “The advertising model has changed from intrusion to invitation.” Rance Crain

Some Quotes

“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

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Let’s Go Back to 1950

Advertising was print Billy & Sue paidfor subscriptions They read the adsthey wanted to read Radio was free,but its role wassmall

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Along Came Television

A new proposition…

You give us your time,

and we’ll give you free content!

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The Essence of the Deal

To Billy & Sue, their moneywas more valuable

than their time

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But, They Were Pretty Smart…

They immediately developed mental advertising filters

TRANSMITTEDADVERTISING

RECEIVED

ADVERTISING

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Where Billy and Sue Got Their Commercial Information

TVNEWSPAPERS

MAGAZINES

DIRECT MAIL

RADIO

OUTDOOR

PR

PROMOTIONS

WORD OF MOUTH

ETC., ETC.

DIRECT SALES

LITERATURE

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But, As Time PassedThat Changed

TV

NEWSPAPERS

MAGAZINES

DIRECT MAIL

RADIO

OUTDOOR

PR

PROMOTIONS

WORD OF MOUTH

ETC., ETC.

DIRECT SALES

LITERATURE

CABLE

INTERNET

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And, Billy & Sue Changed, Too

Now, their time had become more valuable than their money

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They Also Questioned Why They Should do

The Advertising Filtering?

A New Proposition…

Let the Advertiser do the Filtering!!

GONE

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What Are Billy & Sue Expecting?

Understanding One to one marketing Message coherence Naturalness Respect

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The Essence of This New Dealis Mass Customization of the

Commercial Message

The Key to Billy & Sue is…

PERSONAL PERSONAL RELEVANCERELEVANCE

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So, What Does All This

Mean ForAdvertising Agencies?

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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

First, Some More Quotes

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Ad Agencies

Strengths

Understanding of the consumer

Understanding ofbrand experience

Client relationships

Skilled aggregators

Diverse talent

Weaknesses

On the defensive

Stuck in the 30 sec. spot/colorful ad rut

Poor collaborators

Caught in the FWMTS trap

Fear

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What To Do?

1. Consumer focus2. Brand architects3. Coalesce the

outcome4. Holistic ideas5. Business creativity

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1. Consumer Focus

Ad agencies understand the mind of the consumer betterthan any other player

This is the unique strength to leverage

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2. Brand Architects

Like a great building, a great brandneeds a skillful architect

This is the position that ad agencies should be moving to fill

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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

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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

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5. Business Creativity

Today’s business model is dying. A new one must beinvented. This will take an enormous leap by all

Ad agencies that lead in this can survive. Those that don’t will be marginalized

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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

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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

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Oh, And By The Way…

If You Haven’t Noticed, Billy & Sue Have Changed

Their Names, Too!

Copyright 2003 Carlton Associates Incorporated