Writing in Forbes, Avi Dan points out the real dangers to increasingly common 120-day payment terms: interest rates. Currently, short-term credit rates are near zero, minimizing the
effect that longer terms have on agencies. But when markets turn and interest rates shoot back up to 5% or 6%, 120-day payment terms could be a death knell for some agencies. Agencies will need to
borrow at higher interest rates just to stay afloat while waiting to be paid. Of this impending doom, Dan writes: "If the ad industry is not able to thwart this move toward
extended payment terms, this could ultimately lead to the end of the agency business model, as we know it. If agencies cannot sustain themselves financially, marketers may have to resort to a new
arrangement in which Madison Avenue’s role as an independent entity could give way to a system akin to in-house agency relationship, and where agency vendors are paid directly by the client."
Social media agency Movement Strategy has announced the addition of creative strategist, Stephen Para, as executive vice president and chief growth officer. An early proponent of digital marketing strategies, Para has helped build digital departments within agencies such as Catalyst/IMG and Tom, and Dick & Harry. He also developed a boutique design agency, The Conspiracy Project, and most recently, founded social media agency Kodiak/Samurai, contributing to his reputation as a brand communications expert. Of the hire, Movement Strategy Co-Founder Jason Mitchell said: “Over the past five years we have grown from a start-up to a highly respected agency. Bringing on Stephen marks the next step in our evolution as we focus on becoming a global social media agency. Stephen’s knowledge, creativity and relationships are helping us accomplish that.”
Advertising Age has a glowing piece on what it's touting as the new ad mecca: Austin, TX. Home to Omnicom's GSD&M, Dell, Whole Foods and SXSW, the town is indeed a happening place. But don't try to drive there. The place needs no less than three more Interstates to handle the growth. Sadly, that isn't coming anytime soon. What is coming is Ad Age's Small Agency Conference. And we have no problem mentioning that here at MediaPost. We've all got our conference series to keep the publishing side of things afloat. There's no secret there. But does one biggish ad agency and one big brand really make Austin a new ad mecca? Nothing is really going to unseat New York and San Francisco as Kings of Advertising. Think about it. What would Austin really have if it didn't have SXSW, which of course is the new love child of marketers and agencies?
Remember David Lipman? He was the guy whose agency, Lipman, tanked allegedly because of financial problems at parent company Revolate resulting in lawsuits filed for non-payment of vendor invoices. Well, he's back on his feet and has been tapped as chief creative officer for Town Creative. Of the hire, Town Creative President Wendy Maitland said: “By bringing David Lipman on board as chief creative officer, Town is revolutionizing branding and marketing in the worldwide real estate industry.”
Brooklyn artist Maya Hayuk spoke with Starbucks agency 72andSunny over the course of eight days regarding her artwork and how it might be incorporated into promotional work for the new Starbucks
Mini Frappuccino. But after the eight days, she told the agency she was too busy to create new work and the talks ended.
Upon launch of the Mini Frappuccino, Hayuk felt the rainbow-style artwork was a bit too similar to work of her own and she filed a $750,000 copyright infringement lawsuit against Starbucks saying the finished product was "strikingly similar" to her work.
The lawsuit states: "Starbucks brazenly created artwork that is substantially similar to one or more of Hayuk’s copyrighted works.” Hayuk's lawyer added: “When things like this happen, it cheapens the value of the art -- it’s really true. And her only source of income is her art.”
For its part, a Starbucks spokesperson said: “We are aware a complaint has been filed, and we are investigating the allegations.”
It seems the "hook up" is the predominant theme at Cannes Lions this week. Just like Barbarian Group's Dumb Phones, Virool's "Cannes We Meet" helps delegates connect with other
Cannes We Meet is a web app that works just like Tinder. After you visit the site and log in using LinkedIn, you can swipe right to meet or left not to meet in a manner very similar to the Tinder dating app.
Of the app, Virool CEO Alex Debelov said, "We know that clients meet agencies, agencies win business, startups win funding and products find buyers. Now we're helping bridge that gap and propel our industry forward."
Nice effort though I'd venture to say that I'm not all that far off base when I suggest rose-fueled delegates are thinking about propelling forward something entirely different than the industry while boozing it up in Cannes.
Leading up to and during Cannes Lions, a handful of the world's best and most respected creatives convene on jury panels in Cannes, France to judge the world's creative. These judges are the cream
of the crop. Any agency would love to have them work for their shop -- but how does an agency reach out to all these amazing creatives all at once? Easy. Turn your Cannes Lion entry case study
video into a recruitment ad.
180LA did exactly that by submitting a case study video of an entry into four Lions competitions; Film, Press, Direct and Radio. So as jury members were in the midst of reviewing hundreds of entries, they were also delivered a sneaky recruitment video. Quite brilliant actually, and from the tweets some of the judges sent, the stunt seems to have gone over quite well.
Y&R/Bravo Miami VP Creative Director wrote: "Hey @180LA thanks for the offer in the middle of the judging process. Lol. I'll call Monday." Proximity Creative Director Eva Santos wrote, "A case study just called me by name and offered me a job. Great idea @180LA #canneslions "lionsjudging."
Delivered with the drollest of droll voice overs, jury members, if not interested in the offer, are asked to "pass this idea to the shortlist and help change the life of another CD."
Check out the video here.