Ad Agencies To Fill Gaps Identified By President-Elect Trump

President elect Donald Trump's policies and picks to fill cabinet seats have advertising industry executives trying to identify and fill gaps in their own business models.

For starters, digital ad agency Jellyfish, headquartered in Baltimore, will open a Nashville office led in part by a former Ogilvy and iCrossing executive.

"We saw this area as an under-served market, similar to Austin before it became Austin," said Jim Hamilton, managing director and head of U.S. agency at Jellyfish. "The focused attention on what's perceived to be a forgotten demo means millennials are out and this new forgotten demographic is in."

Hamilton called it an "interesting and potential cultural shift" for Jellyfish, though it's too early to tell how it will turn out. In the Nashville market, business is booming and the agency is getting calls from what has been dubbed as a forgotten market segment.

"If the Trump campaign language of lighter regulation holds true in practice, digital advertising can keep moving forward aggressively," said Elite SEM Founder Ben Kirshner. "Ultimately, the promise of the right ad to the right person at the right time depends on technology capturing the individual's footprint."



Kirshner said performance and privacy are a balancing act. If Trump ushers in less restrictions on cookies, for example, the industry can expect advertising to accomplish more. That could result in more investment in advertising that's working. 

Brian Onorio, CEO at Walk West, a full-service digital marketing agency in Raleigh, North Carolina, providing Web design, development and strategy, said candidate Trump transformed the media in ways people didn't expect.

"During the campaign, Hillary Clinton spent about $10.90 per vote, while Donald Trump spent $6.14 per vote," Onorio said. "She outspent him in radio and TV and online, but Trump showed us the power of earned and owned media."

Onorio said it will have ramifications on the advertising industry.

Many agencies and brands will try to turn Trump's spend success into a formula for their own. He also said it proved there's too much emphasis on paid media. Social media, though not new, can become a powerful tool when used correctly.

Ecommerce insiders are also keeping an eye on changes. Nicolas Maslowski, CMO at Miami-based Aeropost, which provides services for LATAM customers to shop online directly from U.S. retailers, said the incoming administration will have an influence on prices. "Will a price trade war start and, if it does, will it affect cross-border ecommerce?" he asked

Since the election, the U.S. dollar has strengthened. As the dollar strengthens, exports will decline and products will become more expensive, Maslowski said, suggesting that the trade balance in the U.S. will decline because people will be looking for less expensive products in China.

"Everyone is waiting to see if duties and tariffs will rise ,and whether the U.S. will enter a trade war," he said, which will determine the types of products international customers will buy online from U.S. retailers. This will cause companies to rethink strategies. "We should know that sooner than later — and it will have an impact on international ecommerce."

1 comment about "Ad Agencies To Fill Gaps Identified By President-Elect Trump".
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  1. Jonathan Hutter from Northern Light Health, December 9, 2016 at 11:20 a.m.

    I'm hearing three things from this idea of "gaps":

    1. Focusing on a "forgotten demographic" means agencies will open divisions that specialize in targeting disenfranchised, disaffected, and generally disgruntled people who rebel at all trappings of "the system?" Looking at how Trump was elected, that would range from people feeling excluded from any chance at economic progress, those who have been jettisoned by big corporate interests, and the alt right. Are agencies really intending to do that? My b.s. meter is off the charts on this. 

    2. If lighter regulations mean advertisers can adopt more aggressive targeting, we'll expect to see more intrusive ads, with more personal data capture, and therefore more aggressive use of digital media especially. Sounds like the fox in charge of the hen house. Expect more ad blocking as a reaction.

    3. Since Trump showed us the power of earned and owned media, does that mean we can expect brands to use fake news and social media slams to work in marketing? Will brands actually use Twitter? The American electorate has shown they will accept crap content from its politicians. Brands shouldn't expect to get the same allowance. 

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