Continuing its poaching of ad agency execs, Apple, which aims to build its in-house marketing department from 300 to as many as 600 staffers, has hired Wolff Olins Global CEO Karl Heiselman.
Heiselman, who once worked for Apple in the early 1990s when Steve Jobs returned, has been with Wolff Olins for 14 years. Of his earlier time at Apple, Heiselman said: "It was a bit of a weird time, they were trying to find their way. The big lesson I
learned was they were trying to be somebody they weren't and Jobs came back and said very clearly, 'we are going to go back to who we really are'." As Apple faces increased competition, most notably
from Samsung, Heiselman will have big strides to make. But he's aware of the problem and believes the brand is sometimes "a little too cool for its own good. I think it might be in danger of becoming
too cool, maybe not too cool, but too slick." Here's hoping he can save things.
Programmatic buying. You know, that practice where computers talk to computers to place ads on other computers all without human intervention? Okay -- we simplify, but it's drastically changed how things work in the agency space. Some agencies are partnering with technology providers. Others are just freaking out. Mediamath Chief Revenue Officer Erich Wasserman says no one needs to freak out and that advertisers, agencies are ad tech providers can peacefully coexist. He tells the Drum: "Unsurprisingly, this trend has caused some in the agency space to feel unsettled. Media scaremongering positions ad tech companies as attempting to disintermediate agencies, which -- from our perspective -- is absolutely not the case. To the contrary, some of the most successful relationships within our global business rely on the brand and agency relationship thriving -- leveraging insights, availing themselves of deep ecosystem integrations, and growing and optimizing spend based on the outputs of a strong platform." Okay -- maybe that's just more buzzword bingo, but we're all for a mutually beneficial threesome.
Jumping aboard the production agency trend, Omnicom Group has announced the merging of E-Graphics Worldwide and Hub Plus to form eg+ Worldwide, an entity that will "provide a client-focused network for production and tailored implementation solutions." The new company aims to help global brands "implement, amplify and localize" creative programs across multiple media channels. Of eg+ worldwide's launch, Omnicom President and CEO John Wren said: "With the launch of eg+, we are leveraging the very best technologies, talent and the extensive resources within Omnicom to help our clients meet the challenges of an increasingly diverse, complex, and global media landscape." eg+ worldwide will have 1,200 staffers who will be overseen by CEO Paul Hosea.
You've got to love how agencies explain away layoffs, fires and mass exits. Following the exit of several employees, here's what Tribal DDB had to say. “In the normal course of business, people are presented with opportunities to take on different, new, and challenging opportunities. As sad as we are to see some of our colleagues leave Tribal to pursue these new opportunities, we’re happy that other companies recognize their talent and the value of the experience they have gained at Tribal. We also wish them well and look forward to welcoming new colleagues in their stead.” Whatever happened to the simple "creative differences?"
It's not a surprise that many brands are shifting their marketing budgets away from traditional media and towards digital media but the financial segment is set to experience big shifts over the
next four years according to recent eMarketer research.
The researcher forecasts an 11.7% compound annual growth rate between 2014 and 2019 for the financial sector resulting in a $10 billion annual digital ad spend. According to Kantar Media, between 2013 and 2014 alone, television spending (across all sectors) dropped 4.7% from $3.4 billion to $3.2 billion while online spend increased 20.4% from $2.4 billion to $2.9 billion.
Dramatic spending drops were seen in magazine (down 7.3%), radio (down 10.9%) and outdoor (down 11.4%).
In terms of spending objectives, eMarketer forecasts the financial sector will allocate 62% of budget (or $4.46 billion) to direct response and 38% of budget (or $2.73 billion) to branding by the end of 2015.
Search will dominate paid media spending for the financial sector in 2015 representing $3.40 billion or 47.3% of US financial services total digital ad spending. eMarketer estimates paid digital display will closely follow with $3.02 billion of the financial sector’s budgets projected to flow to the category by the end of the year.
Mobile is also an active area for financial brands. According to eMarketer, mobile ad for the sector is expected to hit $3.49 billion by the end of 2015 in comparison to $3.7 billion spent on desktop.
Social media has also seen significant spending increases with financial brands increasing the share of budget to 8.8% in 2015, up from 5.9% in 2014 according to Duke University's Fuqua School of Business.
Recently, there's been increased debate surrounding the open office concept and its effect on productivity. Various articles and studies have pointed out that it may not be as productive a work
environment as old-school offices with walls and doors. Some posit that the concept fosters the creative spirit. Others posit that the concept fosters distraction and anxiety.
While many agencies have gone open concept, one is publicly proclaiming its love for the concept in an open letter published in Ad Age. Penned by SS+K Partner and Chief Creative Officer Bobby Hershfield, the letter reads like a "facts be damned" opinion piece which, truth be told, is perhaps all well and good. After all, what works for some, doesn't work for others.
In the letter, Hershfield thumbs his nose at stats highlighting the downside of the open office concept and touts the concept's benefits as he sees them. He writes: “We don't rely on email so much. We talk. Email follows up a conversation instead of initiating one, or even worse, substituting for one. We don't just share ideas. We wad them up and toss them at each other, blurt them out, interrupt and criticize and applaud them. We talk more. Walk around. Offer suggestions enroute to the bathroom. We don't hide in our offices. We don't hide behind walls. We are exposed and sometimes that fear puts pressure on us to be better in every aspect of our job."
He finishes, writing: "We are happier. We are less complacent. Less bored. We are stimulated. And we are getting to know one another better, which makes a culture that really is only about people and [making] ideas stronger."
There never will be an answer to this conundrum mostly because everyone has a different work style. Some love the thrill of constant interaction and lobbing ideas back and forth while eating their lunch and walking on their standing treadmill desk. Others love to cocoon themselves and let prior interactions gestate into well-formed ideas which are then shared to a larger group. To each their own, I guess.
David Murdico, creative director and managing partner of Supercool Creative Agency puts forth a solid argument as to why startups should pay agencies more than brands do for the same work.
First of all, he notes a startup is an unknown entity and no one has ever heard of it before making it all the more difficult to create the necessary marketing program to achieve awareness and sale. He notes startups are generally more demanding than established brand marketers, often times because so much is at stake.
Perhaps the biggest problem area when it comes to crafting marketing for a startup is that up until the point the startup reached out to an agency, everything about the startup has, thus far, operated in an echo chamber with scant few nodding and bobbing their heads in agreement without truly vetting the idea or how the idea will be perceived in the real world.
Another challenge when working with a startup? They tend to change their mind a lot about, well, everything. And that can be a gigantic time suck. Check out Murdico's entire list here and file it away in your back pocket for use the next time you consider working with a startup.
This is gold! Gold, I tell you! And it's arrived just in time. As we all mourn the loss of our beloved Mad Men characters, they have been given renewed life, in the form of a Tumblr blog, as
digital natives spewing all the usual buzzword bingo that's so prevalent in today's marketing landscape.
Taking on the form of animated gifs, we have Don informing his secretary: "The future of advertising is socially integrated digital platforms." We have Peggy commending a co-worker saying: "Nice branded social post, bro." We have Don asking Peggy: "But does it work as a pre-roll." We have Don reacting to a proposed "Tinder-powered drone." We have Pete telling Don: "The CTRs need optimizing for behavioral targeting of Millennials."
And on and on and on. Brilliance.
Oh for f*ck's sake! Stop. Just please stop! Every ridiculous addition to the CxO title space just dumbs down the importance of the core four: CEO, CFO, COO and CIO. Maybe you can add CMO and CCO to
that list -- but chief data officer? Chief customer officer? And now...wait for it...chief native officer?
Yeah. Chief native officer. Or at least that's what Forbes Contributor Daniel Newman would like to see instituted. Newman argues that the merging of paid and earned media requires this CxO style oversight.
He furthers his point, writing: "The biggest reason to get a Native Officer is that while digital agencies and publishers work together, they don’t necessarily do so as a team. In fact, there are instances where they don’t see eye to eye. While publishers are great at creating content, they can treat branded content like a 'second-class citizen.' On the other hand, digital agencies consider themselves star content creators for brands. In such circumstances, there’s a pressing need for a 'dedicated task force' to exploit native ads to their fullest potential. The CNO should lead this pack, guiding the brand towards rewarding native advertising campaigns and best practices."
So what say you? Do we need the chief native officer?
Sort of like food brands still pimping low fat/no fat products when studies clearly indicate the human body needs fat, the office management world is still pimping open office space when many studies have shown it's a less productive solution than
more traditional office space.
That's not stopping the latest trend in office space, the Superwide. Superwide office space is large, one floor office space consisting of 100,000 square feet or more. Of the trend, Brookfield Property Partners Senior VP Duncan McCuaig said: “Large floors are absolutely in demand.” And “right now there is very little of this product in the city,” he added, referring to Manhattan.
Adam Kansler, managing director at financial data company Markit, loves the open office concept and says: “There’s something that gets lost” when a company is on multiple floors. You don’t get the same random moments of seeing someone from across the way, hearing that they’re working on a project, and saying, ‘Oh, I’m going to stop by.’ ”