Global ad spending will reach $534 billion in 2014 -- a 4.5% increase over 2013, according to GroupM’s latest forecast, issued today. The company predicts investments in 2015 will rise an additional 5.0% to $560 billion -- finally exceeding the pre-crisis peak of 2007/2008 in real terms. In the U.S., spending is projected to grow 3.4% this year to $162 billion. And next year spending in the U.S. market is forecast to grow another 4.2% to $168.3 billion. “The U.S market should experience moderate Ad growth in 2015 consistent with nominal GDP,” said Rino Scanzoni, GroupM’s North America chief investment officer. “We expect 2015 overall Ad volume to exceed the 2006 high water mark of $161.9B by 4% on a nominal basis. TV share should remain consistent. Digital share of Ad revenue is expected to grow by [1%] driven by search and on-line video.” Globally, ad recovery is localized, with 17 markets accounting for 93% of expected ad growth in 2014. Even at its moderate 3.4% growth rate this year, the U.S. will contribute one-quarter of incremental ad dollars. China ranks second as it climbs a predicted 9.8% to $76 billion. Other countries making sizable contributions to this year’s growth include Nigeria, Kenya and Vietnam. “Many companies are still operating with very strong balance sheets,” said Dominic Proctor, president of GroupM Global. “Coupled with a rising general confidence and a specific comfort around digital marketing, though notwithstanding some geopolitical uncertainty, we are seeing an uplift in some of the ‘older economies’ as well as the new.” Adam Smith, the firm’s top forecaster and editor of the GroupM forecast report, This Year, Next Year, said: “Despite the slowdown in China's general economy from 2012, its consumer economy continues to expand. This, plus intensive digitization of advertising, keeps China ad investment rising at or near double-digits, with no large print legacy to correct.” It is a different story in Western Europe, where 73% of the regional economy is in the Eurozone, which continues to struggle. In real terms, the Eurozone remains 20% below its 2007 advertising peak, and the hardest-hit "periphery" of Greece, Ireland, Spain, Italy and Portugal, 47% below the peak. Smith added: “Western Europe is the most-digitized ad region in the world, though this may finally be maturing to judge by digital ad investment growth slowing from double- to high-single digits in 2014 and 2015.” Western Europe also has the world's most print-heavy advertising, although recent declines are moderating from double- to mid-single-digits in 2014 and 2015. Elsewhere, GroupM notes that some members of its south-east Asia group (Indonesia, Malaysia, Thailand, Philippines, Singapore and Vietnam) face political and economic challenges, and this year will collectively slip from double- to mid-single digit ad growth. “This group will still contribute to the global ad recovery, but we are on alert for central banks ‘tightening into the downturn’ if inflation becomes a problem,” said Smith. India, Brazil and Russia remain among the faster-growing ad markets, although GroupM warns that its reduced Russia forecast -- from an annual run-rate of 10% to 6% -- assumes no worsening in domestic affairs. This Year, Next Year, is part of GroupM's media and marketing forecasting series drawn from data supplied by holding company WPP's worldwide resources in advertising, public relations, market research, and specialist communications.
Advertising isn’t one medium or another anymore -- and a new campaign from Hewlett-Packard and ad agency 180 LA blends emerging media with traditional to create an entirely new hybrid. "The agency had to push ourselves to innovate and think about how we best showcase a new medium within an established one," says William Gelner, chief creative officer of 180LA. The "Bend The Rules" campaign was initially designed to live through social media. 180LA worked with the management company Niche that represents popular “videographers” to select and book five influential personalities who post on the Vine platform. Each Viner then created a six-second clip to highlight Hewlett-Packard's convertible PC, the x360 Pavilion, a tablet computer that can bend and fold upon itself. The premise was to showcase the flexibility of the computer and its applications with fellow “rule benders.” The campaign was tagged with #BendTheRules and ran across social media channels. However, one Vine video from Robby Ayala became a viral hit, with more than 10 million views. This video shows him watching a girl use her HP tablet and then allowing him to think his regular computer can fold as well. He ends up breaking it. Then, 180LA quickly pivoted to capitalize on this viral success by developing a traditional TV spot. There was no original intention to make a TV ad out of Vines, but seeing the success of the online campaign sparked the idea of expanding the campaign’s reach through TV, say 180LA executives. Transforming the videos to a traditional TV spot was conducted in a compressed time frame. After the video was originally posted July 16, 180LA developed a concept, produced a 30-second spot, and posted online August 8th that began airing August 11th. The Connected ad is the first TV ad made entirely in the setting of Vine. The ad links each Vine personality as the x360 tablet computer bends and travels through each individual's video in a choreographed continuum, all set within the Vine user experience. "For a campaign called ‘Bend The Rules’ we thought ‘let’s really do it,’” says Gelner. “We took a digital execution and brought it to TV. You usually see it the other way around." 180LA has worked with HP since 2013. The commercial can be viewed here. More of the #BendTheRules greater campaign is available here.
Former U.S. Vice President Al Gore and The Climate Reality Project have appointed a team of WPP agencies to create a global campaign designed to put pressure on world leaders to commit to meaningful carbon emission reductions. The campaign, which has been dubbed “Why? Why Not?” is a multidisciplinary effort that seven WPP shops (and one affiliate company) are contributing to, including GPY&R Sydney; JWT; Maxus; The Futures Company; PPR Australia; The Glover Park Group; Blue State Digital, and affiliate company VICE. Elements include strategic planning, advertising, media planning and buying, digital, PR, public affairs and youth marketing. GPY&R Sydney is handling the creative, the main focus of which is a socially driven digital campaign that urges people to ask their leaders two important questions to make a positive difference for the future of the planet: ‘Why?’ and ‘Why Not?’ “In any language across the world, children ask why and why not from a very young age, over and over again,” said Andrew Dowling, Managing Director at GPY&R Sydney. “We want people of all ages to continue to ask these questions of their elected representatives to help highlight the problem in the current approach to climate changes, and advocate the future solutions we should be sanctioning now.” The creative will appear digitally in the U.S., Australia, Brazil, India, Philippines, and South Africa, with some executions tailored to individual nations. The campaign invites young adults to submit videos outlining their ‘Why’ and ‘Why not?’ questions to global leaders. The creators of the six best submissions will be flown to New York to attend the Climate Summit on September 23, and to be part of a multimedia presentation to world leaders calling for action and ambition on climate change. The campaign will continue throughout 2015 leading up to the United Nations Framework Convention on Climate Change’s 21st Conference of the Parties in Paris in December 2015, with the aim of creating overwhelming public support for a global agreement on greenhouse gas reductions and climate action. More on the campaign, including a video featuring Gore talking about the initiative, can be seen here.
Fashion isn’t just about clothes; it can also be about lifestyle, and great design can be anywhere. Now, Brizo Faucet is launching the “By Brizo" campaign to spotlight fashion in unexpected places, particularly the bathroom and kitchen. Developed by Young & Laramore (Y&L), the upscale faucet brand, owned by Masco's Delta Faucets, features print ads shot by fashion photographer Greg Lotus that showcase models wearing vintage Christian Dior, Antonio Bernardi, and Jasmine Di Milo glamorously placed alongside three Brizo fittings designs: the Sotria and Virage Bath Collections, and the Artesso Kitchen Collection. "By Brizo is really about taking ownership of being a fashion brand," says Trevor Williams, Principal and Creative Director at Y&L. "Brizo creates designs with a clear point of view—that sculpture can be functional. And, just like a painter, sculptor or fashion designer signs their name, we’re signing ours. This is our vision of what a fashion-inspired lifestyle looks like." Each ad in the campaign features a headline - including Streamlined by Brizo and Refined by Brizo - that is meant to illustrate both the inspiration behind the product itself, but the fact that each Brizo product is a work of art. The ads appear in lifestyle and design magazines including Architectural Digest, Elle Decor, Bon Appetite, and Interior Design. The campaign will also offer a behind-the-scenes video on the making of the print ads that will run on Brizo social channels. At the same time, fashion as the campaign's theme was selected due to its universal appeal. Fashion is an international language. As such, this campaign will help to support the global expansion for Brizo kitchen and bath products. Y&L has worked with Brizo for 10 years. The agency originally introduced a complete rebranding of the brand back when it was called Delta Select. Then, Y&L was responsible for Brizo's complete overhaul from its DNA, packaging to its overall image. One notable change was the target consumer. Previously, the primary target was the showroom reps—the people who sell the product. And while they are still a very integral part of the process, says Williams, today, the real target is the influencer: interior designers. Still, Y&L has infused the brand with fashion from the start and previous collaborations have included projects with designer Jason Wu. "The brand has developed from fashion for the home—which was perceived as more "runway to home"—into a much bigger idea—fashion-inspired spaces," says Williams. "Brizo is a luxury fittings brand for people who understand that fashion isn’t just about the clothes they wear—but their entire lifestyle."
WPP’s ghg (Grey Healthcare Group) has appointed Ben Ingersoll as Managing Partner and Chief Creative Officer. In this role, Ingersoll joins fellow Managing Partners, Chief Engagement Officer Erin Byrne, and Brand Strategy Director John Dietz, in leading the New York agency. In his role, Ingersoll will be responsible for all U.S. creative operations, including copy, art, editorial and studio. He also will oversee collaboration among the agency’s global creative directors in London and Sydney to unify ghg’s creative point of view. Prior to joining ghg, Ingersoll served as Partner and Creative Director for Cline Davis & Mann New York where he was responsible for several global healthcare brands across multiple therapeutic areas. “Ben brings with him extensive experience spanning nearly every therapeutic area, including diabetes and rare diseases,” notes Lynn O’Conner Vos, Chief Executive Officer of ghg. The appointment comes as a number of shops are beefing up their healthcare practices, seen as a growth sector. And, in a sign of the sector’s growing importance to the industry, the Cannes Lions organization introduced the Lion Health Awards at this year’s Festival of Creativity. Healthcare businesses generate significant portions of holding company revenues. WPP for example said that healthcare accounted for about 9% of its 2013 revenue, or roughly $1.6 billion. WPP said earlier that its healthcare revenues were up this year although it didn’t say by how much. Omnicom says about 10% of its revenues come from healthcare category which includes pharmaceutical. In a second quarter earnings call with analysts, CEO John Wren described the sector as “very active.” Earlier this week, in a bid to bulk up its health and wellness practice, Havas Group’s Arnold said it appointed two agency veterans with extensive credentials in the field to lead it -- Christine Beeby and Gary Scheiner. The roles are new and considered part of new strategic initiative to drive growth within its health and wellness category. Last month Publicis Groupe’s Rosetta Consulting, in a bid to ramp up its expertise in the healthcare field, named Steve Libenson a partner at the firm. He’s previously worked with a variety of healthcare and pharma brands including Pfizer, Merck and Novartis.
There's a heated debate going on between 4A's President Nancy Hill and Association of National Advertisers' Bob Liodice. After Hill penned a piece for CMO Today on why ad agencies are starved for talent in which she argued that agency pay is much lower -- particularly for entry-level positions, because clients don't pay enough -- than other industries, particularly tech, Liodice shot back, claiming it's the inefficient agency business model that's causing the problem. Hill writes: "Extended payment terms, unreasonable indemnification clauses, incentive plans that don’t incentivize, FTE negotiations on hours in a year all add up to a system that is broken." Liodice counters, saying agencies don't do enough to recruit the right people and, once they do, they don't offer the necessary training to retain that talent. Liodice also points out that the estimated sales and earnings growth of agencies is far more robust than that of brands, prompting one to wonder why agencies -- which appear to be financially healthy -- can't pay more for talent. In case you were wondering, there are four types of digital agencies. At least according to Propane Studio CEO Neil Chaudart, who has taken it upon himself to categorize digital agencies for us. First, he says there's the "digital campaign agency" -- which is basically just a traditional agency that comes up with big, emotionally moving ideas. He explains: "Digital campaign agencies push these ideas out to all digital channels with the intention of luring users back to a central hub or destination: It's the 'big idea' that hooks them in." Next is the "integrated marketing digital agency" -- which is less about developing the big idea and more about tactics such as SEO, SEM, mobile, email and other executions designed to drive traffic to a particular destination by using data, analytics and marketing automation platforms. Third is the "digital solutions agency" which goes beyond the big idea and gets down and dirty with the development of CMS systems, sales portals, inventory management and custom software development with a marketing focus. And finally, there's the "DX agency" -- which is all about creating that pervasive aura of customer experience "and utilizes human psychology to create solutions that, when combined, activate a strong, steady pull towards the brand." Sort of like a cultish religion, if there were such a thing in the ad agency world. Content marketing is all the rage now, right? Everyone's doing it. Everyone has something to say about it. And everyone wants to provide it as a service. Even media agencies. You know, those folks who take deep dives into data in order to decide where the ads should go? Yeah -- not too a big a leap. At least according to Starcom UK MediaVest Group Co-Chief Executive Steve Parker who argues in MediaWeek that media agencies are, in fact, perfectly capable of doing content marketing. Parker argues that the role of media has always been about delivering the right content to the right person in the right context. Furthermore, he adds: "While everyone else has been debating who owns content marketing, we have been building a team of more than 60 diverse specialists who use data to understand what content a consumer wants and take responsibility for creating, curating, delivering and optimizing that experience." Hmm, sounds quite logical to me. Boston-based PJA Advertising and education organization College Bound Dorchester is out with 3 Syllable Boston, a game that asks players to solve 20 puzzles to see how well they know Boston. Players are asked questions about where the Boston Marathon ends, where the city parties on July 4th, Fenway Park trivia and more. But the catch is that all the answers are just three syllables long. Which sort of helps with the guessing. It's all to "promote fun, optimism and goodwill citywide.”