4A's Transformation 2014 - March 18 - Brad Feldman, New York Post
4A's Transformation 2014 - March 18 - Phil Cowdell
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Transcript of 4A's Transformation 2014 - March 18 - Phil Cowdell
The Future of Advertising:
“Can incremental improvement deliver the Agencies’ future or is reinvention imperative?”
What is the PROBLEM we are trying to solve?
“Ensuring our businesses can be viable and profitable as well as fun and purposeful”
CONTEXT: Everybody knows things are changing….
• Consumer behavior• Tech innovation • Media fragmentation & reinvention• Content anytime anywhere any device• Data scale, complexity and speed• Privacy and confidentiality• New trading models• Disintermediation• P&L pressure & investment timelines• Accountability needs & expectations• Changing business models• etc
CONTEXT: …less clear on when the change becomes unavoidable….
“Do I have to address this within my tenure or can we hold off until I’m safely (profitably) retired and its
someone else’s problem?”
CONTEXT: …less clear on when the change becomes inevitable….
• For lean forward adopters…which client sectors will move first; and what will it look like?– First movers: direct-response transactional industries
(finance, travel, etc)– Slower migration sectors with less definitive or timely
cause-effect linkages
• Key accelerant = “Closed loop outcomes”
MACHINE MACHINE
PERSON PERSONINPUT
INPUT
Interaction
CONSTRUCT 1:
$
High cost ad units …………………………….Low cost ad units
Volu
me
of a
d un
its
Legacypattern
Long tail
CHECK-POINT: What is the current distribution of ad-units?
$50k 5c$5mm
But how do buyers become 1,000x (or 1mmx ) more efficient…?
What does a planner do when plans dynamically evolve?
Annual Billings per Buyer
Average Ad Buy Unit
Units per Head per year
$ 10,000,000 $ 50,000 200.00
$ 10,000,000 $ 5,000 2,000.00
$ 10,000,000 $ 50 200,000.00
CALCULUS: ‘the mathematical study of change’
Mass events
1:1Messages
High cost ad units …………………………….Low cost ad units
Volu
me
of a
d un
itsVo
lum
e of
ad
units
Legacypattern
What is the evolving distribution of ad-units?
MACHINE MACHINE
PERSON PERSON
Transaction
INPUT
FEEDBACK
INPUT
FEEDBACK
Discussion
CONSTRUCT 2:
High cost ad units …………………………….Low cost ad units
Volu
me
of a
d un
its
Legacypattern
Mass events
1:1Messages
Volu
me
of a
d un
its
High cost ad units …………………………….Low cost ad units
Volu
me
of a
d un
its
Socially scaled events; with
fully integrated marketing programs
1:1 messaging: executed at
speed & scale (highly
automated)
Mass MOVEMENTS
Personal MOMENTS
COMPARABLES: Learning from others?
• Which industries have already reinvented? Why? How? – Wall St– Hollywood– Retail – Travel– Tech – etc
• What can we learn from others?• What could our journey look like?
Concept:
Ated
COMPONENTS OF CHANGE:
• From….To
• Finding the optimal ‘people:machine’ balance
LOOK FAMILIAR?
CROSS-DISCIPLINARY ‘DESIGN’ TEAMS INITIATING
High cost ad units …………………………….Low cost ad units
Volu
me
of a
d un
its
Socially scaled events; with
fully integrated marketing programs
1:1 messaging: executed at
speed & scale (highly
automated)
Mass MOVEMENTS
Personal MOMENTS
High cost ad units …………………………….Low cost ad units
Volu
me
of a
d un
its
Socially scaled events; with
fully integrated marketing programs
1:1 messaging: executed at
speed & scale (highly
automated)
Mass MOVEMENTS
Personal MOMENTS
Ated
EXECUTED AT SPEED/SCALE (AI+MACHINE LEARNING)
Concept:
“MISSION CONTROL” & REALTIME DATA VISUALIZATION
Implications:
UNDERSTANDING THE “WHY?” AND WHAT TO DO NEXT
LEADING TO RAPID PROTOYTPING & CONTINUAL IMPROVEMENT
CHALLENGE: What is the PROBLEM we are trying to solve?
To what extent this new construct can deliver against the four dimensions of the business problem?
Are the dimensions equally resolved or in conflict? What are the side-effects and challenges that will be triggered by executing this new mental and physical model?
How should these side-effects be offset or resolved?
What may be better constructs? Multiple versions, experimentation, then rationalization around new norms
When it comes to the future – there are three kinds of people; those who let it happen, those who make it happen and those who wonder what happened?
John M Richardson Jr