CMO's and Advertising Agencies

A recent report by Jupiter Research cites that corporate CMO's are experiencing greater pressure for ROI, and are increasingly dissatisfied with their advertising agencies and overall performance. Of course the pressure is on, and as the economy continues to slip this trend will continue and only get worse. Corporations, are seeking answers on survival, and what it will take to make it in the new economy, what's the shift that will be necessary in order to make it? great business for consultants....not for advertising agencies.

Bad news always tends to roll downhill, so as CMO's continue to experience pressure from their Boards, the trend of dissatisfaction will no doubt continue, perhaps it will mean some great opportunities for new "hybrid" agencies, or an all together different model for doing business. Another trend we might see is one where Corporations would absorb some of the traditionally outsourced marketing/advertising roles internally. This would make sense because of the deep pool of great talent that has been displaced, it would offer Corporations more control and cut out a significant expense.

It will be interesting to see where the new opportunities will exist.

New Agency Production Contracts ? Re-examine the agency role as "agent" for their clients

I have been following the "buzz" regarding this latest move by Omnicom.......While this has been a "practice" by agencies for many years, (norm in the US Hispanic market). I have often heard, "we haven't gotten paid by the client, therefore we can't pay you yet", and this has happened to me with BIG clients, no one except the agency is supposed to bankroll their clients - frankly I never had deep enough pockets to do so.....

If agencies that are part of well bankrolled Groups such as Omnicom will not assume liability, then the role of the agency when it comes to production needs to be re-examined. Perhaps the AICP should propose that the client hire the production company directly, therefore eliminating the agencies exposure, and therefore their role as an agent on behalf of their client. Many agencies don't get a mark-up when it comes to production anyway, and frankly with "hybrid" Producer's like myself (adept & able to work both sides), who needs to hire both a traditional Agency Producer or Line Producer..... And if the client hires the Production Company directly, it would at least ensures a collection "position" if the worst case scenario where to occur - a bankruptcy.
Agencies like to have good relationships with their vendors, it benefits everyone in the end, and I don't believe that anyone wants to leave anyone "holding the bag" - but that is exactly what this verbiage allows for....... time to rethink this....

Check out the article that started all of this buzz Omnicom Enforces production Contracts

The traditional Advertising Agency model - RIP?

Besides "my career reinvention & the great job hunt of '09" , writing this blog and other ordinary stuff.... I have been reading and learning, my field of interest has been focused on new media, interactive/digital, personal branding & social media marketing etc.... this is not only the future, but the present of advertising.

Recently I had a conversation with an old friend from college, he basically confirmed what I had been feeling for the past 5 years, the traditional advertising agency model is dead (don't feel sad, it had a loooooong life). What will replace these monoliths ? Swifter smaller shops, will clients still insist on a "one stop shop" mentality? Will it be segmented and niched? My early professional roots are in the US Hispanic side of the business, and this "time" reminds me of the early days in that business, where we where in the midst of defining ourselves and doing it at the same time, there where few rules to play by, and it all emerged quickly. What will define the leaders of this next era? Who are the leaders leading the charge? And what will the shop of the future look like?