As big management consultancies like Deloitte and Accenture are becoming agencies in the own right, Interpublic Group-owned creative shop R/GA is flipping the script: The agency’s business transformation division is consulting the likes of Siemens, Walmart and ESPN on consumer experience and growth strategy.“Our mission is to disrupt conventional consulting.There are some ad agencies wanting to become consultancies, but few are actually doing it,” said Andrew Lam-Po-Tang, executive director of business transformation for R/GA.“Most of our clients are CEOs and other C-level executives outside of marketing.”For instance, Lam-Po-Tang’s team recently helped a U.S. consumer-packaged-goods company understand business opportunities in e-commerce and how to drive consumer engagement.Having worked for The Boston Consulting Group for 10 years before he joined R/GA in August 2015, Lam-Po-Tang thinks that a big problem with consulting firms is that they can easily dive into business analysis and end up with a deck of 200 to 300 pages, but they are weak in executing their assessments.
Tom Tunguz of Redpoint Ventures discusses SaaS value propositions: software that increase revenue, decreases cost, or increase productivity.
Forget 5G, connected cars, virtual reality and waterproof phones; the most important trend at Mobile World Congress was mobile video.On other stages numerous TV networks, media and social media companies, as well as the biggest brands, e.g.Partly they are looking for new distribution networks for their own video content, such as Netflix.If video is the new mobile (Facebook CEO Zuckerberg told shareholders in February 2017 that the company was going “video-first” because “video is a megatrend on the same order as mobile”), then mobile video is the giant honeypot.Examples include Vice Lab, Discovery CoLab, NY Times T Brand Studio, BBC StoryWorks, Facebook Creative Shop and CNN Courageous.One of the most unexpected utterances from the MWC keynote stage, was the admission from CEO Reed Hastings that Netflix does not design its video for the mobile platform.
Facebook chief operating officer Sheryl Sandberg, Mark D’Arcy, VP, chief creative officer of the Facebook Creative Shop and Nicola Mendelsohn, Facebook VP of EMEA, will be guest editors of The Drum’s global July issue, to debut at Cannes Lions.The intersection of creativity and technology will be the issue’s overall theme.Topics covered will include equality, gender parity, brand social responsibility, talent, technology, female leadership and the business at large.“Sheryl, Mark and I are thrilled to participate as guest editors of The Drum for this year’s global Cannes issue,” said Mendelsohn.“Creativity is a force that has shaped our past and will shape our future, one that is mobile and video-first.Throughout this special edition we will explore the power of creativity to unlock the power of technology, and how both can work together to shape the future of advertising globally.”
Reducing spend on marketing and advertising is normally the first thing on the agenda for brands in times of global uncertainty.During unstable economic times, cue Brexit and the American presidential fall out, more and more people are worried about their finances.Across industries, budgets are in flux and technology disrupts marketing strategies on a daily basis.Pearlfinders has researched across markets, countries and sectors and have produced the global index; using interviews from over 10,000 senior marketers across Europe, Asia and the US.While some predict negative consequences for new business in 2017, we feel this thinking is limited as it appears based solely on major incumbent reviews.While the number of these planned is indeed down, we see a change in rhetoric used by marketers towards long term agency partners.
MPs are calling for the government to introduce new advertising restrictions which would stop supermarkets discounting unhealthy food and drinks as part of strict new measures intended to tackle child obesity.In a new report, published today (27 March), the Commons health select committee urged the government to review its legislation regarding promotions for unhealthy food and drinks aimed at children.The Committee of Advertising Practice, a sister organisation of the Advertising Standards Authority, has introduced new restrictions on adverting for high-fat and high-sugar foods on non-broadcast media – such as on smartphones, however the select committee said more action was needed.“We urge a re-examination of the case for further restrictions on advertising of high fat, salt and sugar food and drink in the light of the most recent research not only on the effect of such advertising, but on the scale and consequences of childhood obesity,” said the report.The select committee accused ministers of ignoring proposals from health experts in relation to marketing around unhealthy products.“We are extremely disappointed that the government has rejected a number of our recommendations,” said Sarah Wollaston, the Conservative MP who chairs the committee.
Snapchat is set to become more popular among advertisers than Twitter, Yahoo and AOL within three years’ time, according to fresh research from Ampere Analysis.The study predicts that the ephemeral messaging service is poised to rake in more than $3bn (£2.4bn) in revenue per-year before the end of 2019.The prediction is based on Snapchat's hold on the youth market, with the data showing that 51% of Snapchat's video users are aged under 24, compared to Facebook’s figure of 23% and YouTube’s which sits at 17%.Analysts have hinted that given the current advertising duopoly Facebook and Google have on the arena, with both sharing 58% of the $141bn global ad market, that advertisers may be happy to see other opportunities open up.Cathy Boyle, principal analyst at eMarketer told the Guardian: “You often hear advertisers saying they are getting uncomfortable with such a large portion of ad spend going to just two players.If there can be a third or fourth player they are interested in spreading the wealth beyond the duopoly.”
Warner Brothers has inked an exclusive partnership with HTC Vive to provide VR content for its movie Ready Player One, a highly anticipated Steven Spielberg picture slated for theatrical release next year.Adapted from the book by Ernest Cline, Ready Player One is a sci-fi action thriller that unfolds within the virtual reality space, with the state-of-the-art film slated for release on March 30, 2018, by Warner Bros. Pictures, Amblin Partners and Village Roadshow Pictures.Vive is tasked with producing multiple pieces of VR content tied to the world of Ready Player One with the content available to users through Viveport, which will be distributed in all VR in-home platforms.Further, Vive will bring Ready Player One content to its Viveport Arcade platform as well as showcase the VR experiences and games at many of the global consumer events through the year."The virtual reality world within Ready Player One is extremely advanced, sophisticated and engaging, and with Vive, we chose the best system to represent the future of VR.Vive is the perfect partner to bring that to life and also has the broadest reach to global markets for the use of VR in home, mobile and offline channels," said Blair Rich, president, worldwide marketing, Warner Bros. Pictures.
Formula One’s commercial chief Sean Bratches has hinted that the company will pursue more pay TV broadcast deals and will rely on its redeveloped digital assets to achieve the kind of audience reach which free-to-air partnerships would otherwise offer.New owner Liberty Media has vowed to overhaul Formula One’s dated commercial model with digital, sponsorship and broadcast revenues all being a major focus of the sport’s redevelopment.While growing Formula One’s mass audience appeal is a major focus of the new era, the dichotomy of increased revenue on offer form pay TV deals verses the smaller audience which they offer in comparison to free-to-air alternatives is proving to be a difficult balancing act for the businesses bosses.Speaking to Motorsport.com, Sean Bratches said: “I think it a dynamic that many sporting organisations are looking at – more so than not, organisations are finding themselves on pay [TV] because that is where the money is.”Formula One has saw its viewing audiences decline in several key territories and a major factor attributed to the downturn has been the transition from free-to-air broadcasts to pay TV deals, such as changes in the UK which saw the sport move from the BBC to Sky Sports.Sponsorship revenue for the teams has been decreasing for years, in 2015 it amounted to $750m, down from $950m three years before.
CreativeRace’s London office has been appointed by the UK's leading specialist bike shop, Evans Cycles, to handle all integrated marketing campaigns.Evans Cycles was first opened in central London by a London cyclist, Frederick Evans, who won an award from Britain's largest cycling club for the best cycling invention of 1925.CreativeRace’s first campaign for Evans Cycles is planned to launch early April.This campaign will focus on the brand’s trade-in scheme, and will be executed across press, posters, in-store POS and digital channels.This latest appointment continues a successful first quarter for the agency, with new business wins and senior hires.James Backhouse, marketing director at Evans Cycles says: “CreativeRace showed an uncanny understanding of our business from day one, and we are delighted to be working with the agency to help us achieve our commercial goals.”
Advertisers are funding terrorists and the industry is pointing the fingers again.The Google debacle in which it was found that advertisers were funding terror groups such as ISIS has led to a furious debate in which Google’s YouTube has taken the majority of the blame.This is fair in principle, however publishers have also chosen to specifically attack Google because it suits public opinion (think of the recent tax issues) and because Google’s business epitomises the model that has eroded their revenues.In truth, we should be relieved that Google are getting all the attention and we’re more than happy to follow the publishers, conveniently swerving any blame, and dropping YouTube from campaigns in protest.Now we are distancing ourselves from one of our key partners and pointing fingers.As media planners and buyers we are employed as guardians of our clients' brands; let's embrace this and deliver upon it rather than blame others for recent events.
Earlier this month, Genius, which started as a rap annotation platform, decided that now it would become a video-focused company.The expectation is that at least some of these companies will make it to the $100-plus million revenue threshold that’s the arbitrary mark of a “scaled” media company.For men’s lifestyle player Complex Media, reaching $100 million was always a goal, said Rich Antoniello, CEO and founder.Verizon and Hearst teamed up to buy Complex in a deal valued at $250 million to $300 million in April.“Many look at it as a ‘proof point’ that the business can scale further and have significant longevity/viability because of foundational importance to the advertising community,” Antoniello said.The result is that lately there have been fewer outright acquisitions of publishing companies than investments, which are lower-risk and less “all-in.”
But at BuzzFeed, anybody on staff can query the massive pile of data they’re aggregating from the dozens of platforms and syndication partners they use to distribute content, and nearly half the company’s employees now pull data on a monthly basis.That’s one result of a nearly year-long process of building tools that allow BuzzFeed’s employees to access data without leaning on its data science teams.“I think a lot of organizations have this idea of data teams being gatekeepers,” said Lyle Smith, a senior data scientist at BuzzFeed.“This allowed us to democratize that.”At a growing number of publishers, information about how content and ads perform is gathered by a small data science team, which then fields requests from people in different departments looking for insights.Those insights might form the foundation of anything, from the translation of a popular quiz into a video series to the launch of a new kind of branded content, and so requests for this kind of information come from all over the place, from editors to client services managers to product team leaders.
But for British Vogue, the platform’s Stories feature allows the publisher to be a little more playful.“We’re trying to do fun things, like filming in the fashion cupboard, out in a shoot, a mix of things tied to special occasions,” said Sam Rogers, acting editor at Vogue.co.uk.The fashion brand’s U.K. account has doubled to 2 million followers in the last year, thanks largely to how it has honed its Instagram Stories and video output since December.Tubular Labs data shows the Instagram account had nearly 850,000 video views over the month of February.Of course, fashion weeks across the globe make this a big month in the industry calendar.The previous months saw the account fetch around 400,000 video views.
For all the talk of nimble agile offices and real-time content, many advertisers are still wedded to drawn-out pitch processes that can last half a year or more.The car marketplace, which has undergone a dramatic digital overhaul, has tested a new approach on its last two agency hunts.“Because we are fast-paced in how we work, spending nine months on a pitch wasn’t really an option,” explained Pierre Dadd, head of brand at AutoTrader.(In the old days, rough ad ideas were sketched on tracing paper, or tissues.)The process was pretty simple: After creating a brief, the Auto Trader team shortlisted six agencies and met each of them at their offices to test the “chemistry.” Following this, all six were invited to the Auto Trader Manchester office for an immersion day: essentially, to feel out the business, its staff and its goals.Then, a winner was chosen.
Over the course of a month, the brand’s ads appeared on more than 700,000 domains even though the demand-side platform reported the ads had only appeared on 2,500 domains.Although brand ads appearing next to extreme content has always been a quirk of the internet, the current political environment has placed pressure on brands that have had ads appear next to racist content on websites like Breitbart and YouTube.But because of rampant reselling and mislabeling, the blocks don’t eliminate websites from slipping through.Imagine ihatesports.com being presented as espn.com to buyers.Some exchanges will make concessions with shady publishers because every website they turn away is viewed as lost revenue, the analyst said.“Major buying platforms only look as far as their contracts require them to go,” said Adyapper CEO Elliot Hirsch.
Internet advertising spend is expected to surpass that of TV for the first time in 2017, highlighting the urgency with which Google must properly address advertisers concerns over brand safety to allow for secure sustainable growth.Zenith Media’s new Advertising Expenditure Forecasts report has predicted that global internet advertising expenditure will grow 13% to reach £163bn ($205bn) in 2017.The tipping of the scales from television to online comes as internet advertising is predicted to attract 36.9% of all ad spend this year, up from 34% in 2016.According to the report, the fastest growing component of internet ad spend will be social media, which will grow at an average rate of 20% a year to 2019 when it will hit £43.8bn ($55bn).Such growth could be jeopardised though if the crisis of confidence in Google continues to drag on.Several of the world’s biggest advertisers, including Havas Group UK, L’Oréal, AT and Verizon have all recently halted advertising on YouTube in response to concerns over ad misplacement and brand safety.
Brass has won over The Drum readers with its series of illustrations and digital animation sequences for new CBBC show ‘My Dog Ears’ to win this week’s European Creative Work of the Week title.Produced as part of the ‘My Life’ documentary series, Brass was tasked with bringing to life the story of Joe, age 12, who became deaf following his battle with cancer.Focusing on Joe’s story and how cancer has affected his life through hospital appointments and operations, the documentary features Joe’s alter ego ‘Titanium Man’ (a superhero that can't hear, and who like Joe, has a titanium leg) and how he is helped by his best friend in the world, a specially trained hearing dog called Travis.To vote for next week’s Creative Work of the Week visit the latest Creative Works round-up here.You can submit work to Creative Works using our online form and keep up to date with the latest creative, advertising and design projects from around the globe on our Creative Works homepage.
The below is written by Guy Bisson, Research Director, Ampere Analysis, and is part of Found Remote's MIPTV 2017 preview series.Collaboration, tech integration and localised globalisation: The future of content is hereWhat can a camera company tell the content industry about the future of video entertainment?Whether Snap Inc’s $28bn IPO valuation is justified or not, the platform’s positioning and juxtaposition of content and hardware says an awful lot about the future of TV and entertainment formats.Consider this from Snap Inc’s recent IPO filing: “Our latest effort to reinvent the camera is Spectacles, our sunglasses that make Snaps.Spectacles connect seamlessly with Snapchat and are the best way to make Memories because they capture video from a human perspective.”
India, home to a fast growing e-commerce market, is set to see $30bn of the fashion market digitally influenced by 2020, according to a Boston Consulting Group and Facebook report, Fashion Forward 2020.Today $7bn to $9bn of the $70bn Indian fashion market is currently digitally influenced, with the numbers to quadruple by 2020.Mobile is also set to rise, as 85% of online fashion buyers prefer mobile over any other device, mirroring other reports about mobile usage in the country.Fashion e-commerce already accounts for about 4% of the total fashion market, comparable to sales from brick and mortar outlets (3.15%).Online purchases are set to multiply by about four times to hit $12bn to $14bn by 2020, contributing 11-12% of the Indian fashion market.The spurt of new fashion shoppers will bring with it a fundamental shift in the profile of online fashion shoppers.