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.”
Oy! Another creative award event? Sadly, yes. This one's comes from The A-List Hollywood and they have announced the call for entries for the Moving Image
Advertising, Interactive & Branded Entertainment 2015 Award. The entry deadline set for January 30, 2015.
I'm told the A-List Hollywood is the first creative advertising competition of its kind in Hollywood and will focus on the intersection between advertising and entertainment across all platforms. The event will be judged by the usual collection of international creatives including Leo Burnett's Mark Tutsell, JWT's Matt Eastwood, 360i's Pierre Lipton, and DDB Germany's Eric Schoeffler, among others. And no, there's not one single woman on the jury.
Of the awards, The Martin Agency Chief Creative Director Joe Alexander said: "There are way too many award shows and way too many without a clear purpose. The A-List Hollywood is the rare exception. It rewards the brands -- and agencies -- that are behaving in the most creative and engaging ways. Now that's refreshing."
Right, Joe. That's vastly different from every single other award event on the planet.
There's been a lot going on with Nationwide and its relationship with its agencies over the past few months. While its relationship appears to be solid with McKinney, things are not going so well
regarding its relationship with Moxie.
Confirming this, a statement from Moxie CEO Suzy Deering reads: “While Moxie will continue to work with Nationwide, it will no longer be on a retainer basis. Given this shift, we’ve begun the process of closing our Columbus office. Accounts currently serviced out of that location will be handled by our Pittsburgh and Atlanta offices. We are very proud of the work our Columbus team has produced over the years. They are a group of truly talented, dedicated professionals, and we thank them for all they have done.”
It totally sucks when an office of an agency has to shut down due to client shifts or losses. It's not fun. I've been there and know firsthand what it's like. But life goes on. Mine did. And so will the lives of everyone involved here.