Will Mainstream Agencies Ever Fully Adopt Performance Marketing?

Way back in 1994 when the World Wide Web had marketing prognosticators predicting the death of traditional advertising's less-than-exact methods of ROI and the rise of internet-based ROI nirvana, who would have thought 20 years later, we're still pretty much doing things the same way and have yet to perfect the science of ROI. While we may never truly get there, a rising class of ad agencies—that is performance marketing agencies--think they are close to reaching that nirvana. There aren't many mainstream agencies of this ilk out there but LA-based KPI Boutique has recently launched a new model that's based solely on performance. Founded by WPP and inVentiv Health alums Nico Coetzee and Chad Childress, the agency aims to serve brands' increasing demand for true ROI. Of the approach, Coetzee said, "Clients want nimble, measurable services, and a guarantee that their efforts will generate actual business results. But there's too much bureaucracy and red tape for the networks to adjust their pricing and delivery models to meet the needs of their clients. We saw it in the failed Publicis/Omnicom merger: the industry is so focused on size and consolidation that it forgot what clients actually want and need." How long before the big guys make this mainstream?

UK agency Karmarama Founder Dave Buonaguidi is leaving the agency and doesn't have anything nice to say about the current state of the ad business. Unless of course it happened at his agency. Speaking to The Drum, Buonaguidi said, “There are a lot of agencies out there that are all based on Mad Men, it’s predictable and nothing changes. Karmarama was always very modern…it’s a real shame there aren’t more creatives entering the ad business and trying to make it better. The industry feels very flat and doesn’t seem very inspired, I’m done with trying to change the world of advertising and I’m going to try and do things that make me happy. It feels very peculiar resigning from the business I set up but Karmarama is in good shape and it gives me the opportunity to get on and try something new.” And there you have the other problem in this industry; everyone thinks they're awesome while everyone else sucks.

So the Emmy nominations are out. And in the Academy of Arts and Sciences Outstanding Commercial category are several familiar faces. Budweiser's Super Bowl “Puppy Love” Clydesdale ad from Anomaly is nominated, as is the brand's “Hero's Welcome,” from Anomaly as well. Also nominated are Nike's “Possibilities” from Wieden + Kennedy, GE's “Childlike Imagination” from BBDO New York and Apple's “Misunderstood” from TBWA/Media Arts Lab. Who will win? Our money is on Budweiser's “Puppy Love”.

A class action lawsuit has been filed against Campbell Ewald for some mobile marketing work it did for the Navy. At a Pasadena, CA court hearing, class action lawyer Evan Meyers argued the agency violated its agreement with the Navy and broke laws by sending text messages to 100,000 U.S. citizens. The action is a revival of the Ninth District’s Telephone Consumer Protection Act against the agency with plaintiffs complaining a lower court mistakenly granted immunity to Campbell Ewald.

Do you like Monty Python? Would you like to see their Monty Python Live show in London Sunday, July 20? Well, Brussels-based agency mortierbrigade has your back. The agency is in possession of four tickets to the July 20 show and they want to give them to you. All you have to do is subscribe to their client Spam's spam email list. For three days, you will have to endure all manner of Monty Python-esque silliness but you will have a chance to win the tickets. Not a bad price to pay to see Monty Python, right?

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2 comments about "Will Mainstream Agencies Ever Fully Adopt Performance Marketing?".
  1. Walter Sabo from SABO media , July 14, 2014 at 8:33 a.m.
    No mainstream agencies cannot adopt. The audience has abandoned their methods long ago. The audience BUYS EQUIPMENT to skip the work of the WWP
  2. Jonathan Hutter from Garrand , July 14, 2014 at 9:43 a.m.
    I wouldn't stake my compensation on a click through rate. Before you say agencies can't adopt, there is the other side -- the client that can understand the decision chain that measures more than the last click in order to determine effectiveness and true influence on decisions.