• by Cory Treffiletti , Featured Contributor, July 10, 2002

Every few years there comes a new mantra in business. One of the most memorable that comes to mind is “Greed is Good,” spoken so eloquently by one Mr. Gordon Gecko (Michael Douglas’ character in the movie “Wall Street”). This quote seemed to epitomize the 80’s, and was briefly resurrected in the 90’s with the boom of the dot-com economy, but now it would appear that a shift has occurred - we've moved from Greed to Accountability.

Everywhere we look, everything is becoming more accountable (and rightfully so). CEOs of multinational companies are being held more accountable for poor accounting practices and the errors of their ways. Record Companies are seeking to make their customers more accountable for copyright laws and infringement of those laws. In advertising, the rage has definitely shifted towards accountability, as well.

Recently, there have been a number of articles written that cite the Internet and Direct Response Television as two extremely important aspects of a media budget. Agencies are being held under review for some of the largest accounts in the industry as they search for new ways to sustain growth and develop their customer bases in this post-recession world. This shift in methodology is important and needs to be recognized for its importance.

Previously, I've mentioned that consumers suffer from AADD (Advertising-Attention-Deficit-Disorder) and that this movement towards accountability is a positive shift. As consumers continue to be bombarded with a plethora of marketing messages each day, how can any responsible company continue to spend excessive amounts of dollars with no true read on the effectiveness of those expenditures. If the Internet Bubble can burst and not return, what makes us think that the Ad-Budget Bubble will start to fill back up again?

As a result of this past recession (or whatever your favorite business-news source may call it), most companies severely reduced their ad budgets. It’s been two years and a number of credible sources are saying to brace for the return of these dollars; to start staffing up and preparing for an increase in ad budgets.

My opinion? Don’t get too excited just yet.

In this new accountable economy, the ad budgets will only go where they are most effective and can be proven to be so. As the CEOs and other senior managers are held more accountable for their actions, don’t be surprised if they become a little gun-shy about increasing those marketing budgets too quickly. The world around them is scrutinizing every movement more closely and will barbecue them for any wrong moves they may make.

We saw an encouraging TV upfront over the last few weeks, but dollars will only stay in media when the results warrant that to be so. TV is still notorious for not being accountable and not being able to prove the results of those expenditures.

What this means for you and I, the agencies and the sales people who rely on these ad budgets for our very sustenance, is simple. We need to work harder to evolve the metrics to prove that advertising is effective. We need to prove that our industry and your media vehicles are the most cost effective means of reaching a potential customer and influencing their purchase behavior. Agency people and sales people need to reevaluate how they have operated over the last few years. Traditional forms of Media need to work in coordination with New Media to determine the correct mix that results in the achievement of key metrics such as sales, market share, etc. Traditional metrics for brand building are still important, but primarily as a means to an end. A strong brand will always help in the achievement of key Direct Response metrics, and Direct Response metrics will need to evolve so that more people understand the concepts of view through or increased propensity to buy at a later time. Gone will be the days of Brand Awareness as a sole key metric for advertising campaigns. Here today are the combination and evolution of these metrics.

These ideas are tied to the concepts of Message Media vs. Supportive Media. These are the breakouts of media within a campaign plan and how they are utilized. This marriage of Brand and DR metrics explains how a company will utilize media in this market as the attention span of the general consumer decreases to levels that even MTV cannot achieve.

Traditional agencies have begun to recognize these facts already in this post-dot-com world. They have positioned themselves in various ways, and it will take time to determine which of these formats is best. Will it be the large behemoth media buying agencies or the resurrection of the nimble boutique shops that can react faster to this media maturation? My guess is that both will have their place.

This is not an “all or nothing at all” world to quote the Chairman of the Board. The problem will be whether the old dogs in the agency environment have the time or the patience to learn some new tricks.