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Live from the Shel Holtz seminar

4/26/2007 by David Esrati

I’m posting live- with updates- on Websitetology- from the Dayton Ad Club, IABC, PRSA seminar here: http://blogosopher.com/?p=222

enjoy.

Is Crispin Porter + Bogusky the only “creative” ad agency left

4/24/2007 by David Esrati

The next person who says branding doesn’t count in business to business advertising should be shot. (Not that there are many nay-sayers when it comes to branding- but there are a few).

There are thousands of ad agencies in this country- and all of them would love to be able to take a stab at work for the premier consumer brands- like Nike, Apple, Burger King, Dominos, BMW, Ford etc…

But, when it comes to choosing an ad agency- Chief Marketing Officers seem to have tunnel vision. The list usually looks like this:

Crispin Porter + Bogusky, Wieden + Kennedy, TBWA Chiat/Day, Fallon, Arnold, Martin, Deutch, Goodby + Silverstein, GSD&M – you get the point. Maybe 50 agencies make the list- the rest, fight for the scraps.

Considering it can take at least a year before an agency can (or should) be comfortable enough to take a client in a new category (ad people don’t know everything there is to know about the shoe business- unless they’ve worked in it before) to a new place, with an on target strategy, changes like the following one, make me wonder:

Advertising Age – Nike Moves Running-Shoe Account to Crispin
Nike has officially transferred the creative work for its running-shoe business, as well as the Nike Plus and its Nike ID Web site accounts, to Miami-based Crispin Porter & Bogusky, a Nike spokesman said.
Nike’s running-shoe business was the first account expected to move from Wieden.
‘Proven track record’
“Crispin Porter & Bogusky has a proven track record for delivering creative, breakthrough ideas and we are excited to begin working with them to support these areas of business,” said Dean Stoyer, Nike’s U.S. director of media relations.
Mr. Stoyer said Nike will “continue working with our longtime creative partner Wieden & Kennedy to support the majority of our Nike business.”
Nike has been talking with Crispin for several months, and finally confirmed last month that it planned on moving pieces of its business to agencies other than Portland, Ore.-based Wieden. The running-shoe business was the first account expected to move.

While Crispin Porter + Bogusky is great at making noise, they have yet to take a brand the full course from a nobody like Nike was when Wieden + Kennedy started with them- to the power house they are now.

To abandon the date that brought you is a mistake of major proportions for Nike. If Wieden could afford it- telling Nike to take a walk on the whole shooting match would be the right move. Kudo’s to Roy Spence for rejecting WalMart’s invite to rebid the account after the Draft debacle. Loyalty and longevity in a client/agency relationship are valuable business assets, a part of the “goodwill” number on a balance sheet that shouldn’t be ignored.

The thing that baffles me is that both W+K can have the pick of ad talent (hiring)- if anything has stopped Nike from getting the work they think they are going to get from Crispin- it’s been on their side- not on the W+K side. However, if W+K had moved into a bunker mentality- worrying about losing the account (since it is a major part of their business) and the relationship changed from one of trust- to one of uncertainty, and stopped presenting the riskier, more volatile ideas because they thought that Nike wouldn’t be happy? Nike should look internally for their answer here- because from my perspective- they are trading down for an agency.

Commercial Ratings- The ultimate buggy whip

by David Esrati

As the automobile became the primary transportation method for the nation, the buggy whip inventors created their best offerings. Too little, too late- and other than for collectors of buggy whips- totally valueless.

That’s our analogy for commercial ratings.

Nielsen has been ruling the roost with abstract data for decades- taking a percentage of the total viewers and making an educated, statistically based guess on how many viewers are watching a program. While this worked well with only 3 networks, in the days of cable tv, satellite tv, vcr’s and dvr’s it became less relevant- but the system was so well dug in, and the alternatives so few- that the advertising industry stuck with it.

With broadband sneaking into more homes, with DVR’s doing the same thing- and with Internet use skyrocketing- and the advent of Internet Protocol TV (IPTV) with products like AppleTV, we are seeing the last days for Nielsen- and no real use for rating TV spots.

Here is why: Advertising is expensive- and therefore, advertisers aren’t interested in reaching people via “broadcasting” anymore. Broadcast reaches “broad audiences” including those who aren’t eligible to buy your product. The web, IPTV, and hard-drive enabled TV systems (cable and satellite) are able to deliver content that is targeted and able to generate hard data back. The ultimate one-to-one marketing, where if an ad dollar is wasted- it will only be wasted one time. This is the future, and with the ad industry being a multi-billion dollar business, it won’t be long before marketers demand accountability more exact than if someone saw the commercial- as offered by Nielsen- or even if they liked the commercial- they want to know if you are a real business prospect- and what it would take to make you one.

Nielsen to Offer Commercial Ratings
NEW YORK Nielsen will begin supplying national commercial ratings starting in the fall, the company confirmed today.

If the networks and advertisers can agree on a standard, the commercial ratings could be used as currency to buy and sell ads by as early as the start of the 2007-08 TV season.

But for now, program ratings will continue to be the currency for ad transactions.

A Nielsen representative said it received requests from all five major broadcast networks (ABC, CBS, CW, NBC and Fox) for commercial ratings based on live viewership plus seven days of recorded DVR playback viewing. Nielsen will begin delivering that data “sometime this fall,” the rep said. That will give the industry about a year to analyze the data before deciding whether or not to use it as currency in the following season.

The commercial ratings will provide the average audience for all paid national ads airing during each program transmitted by national broadcast and cable networks, the Nielsen rep said.

While the trade press, the buyers, and the networks talk about this “next big thing” they are just fiddling while Rome burns. The entire system of delivering advertising messages will be more like YouTube and GoogleVideo- with meta-tags driving ad choices with a rebate per-click to the viewer (that’s right- you will get paid for watching and interacting with advertising in the future) or similar to Amazon’s suggestions with a profile built from information you have volunteered.

Soon content producers will take their programming direct, via online hubs like the iTunes store or Amazon- getting paid directly from the consumer for their content. Discounting your media bill will be accomplished by your willingness to watch targeted TV spots- that help build your profile.

If you accept more commercials than your media bill- the proceeds go to the media producers- not to the intermediaries. This levels the playing field- and allows capitalism to do its thing- the way it was meant to.

There are two articles in Ad Age- talking about “engagement” and how “YouTube isn’t getting it done” which are still based on the idea that TV is driven through the old school “Network as middle-man” model. Once you realize that the new middle man will be the one who delivers 2-way feedback and links to your product- you realize how stupid this whole commercial rating discussion is.

If Proctor and Gamble took their “Soap Operas” offline- and onto their site- and charged $1 per show for an enhanced program- with 2 way connections with the characters- and then offered the content for free- if you answered some questions about Pringles, Tide or Gillette- don’t you think they would find that infinitely more useful than a rating of the viewership during their commercial?

Commercial ratings- the best buggy whip for last centuries marketers. Get used to it.

If you have questions about how to navigate this new media landscape feel free to contact us. Surf at the next wave dot biz.

Note: in today’s Ad Age, an article called “Revenge of the nerds” talks about this very subject- it seems Backchannel media has the right idea- except the part about the delivery system still including the networks.

Mr. Kokernak’s vision is to implement long-sought dreams of fully interactive, individually addressable and accountable TV. Backchannel wants to become the software and technology backbone of a new era dawning in TV as it transitions from analog to digital broadcasting — one Mr. Kokernak likens to the broadband tipping point that ushered in the age of YouTube.

In this era, ads are served to people according to the blocks or households where they live. They respond to TV ads with a simple remote click on an icon to, say, get more information about a car they just saw advertised, buy a song they just heard on the Grammys or the book Oprah just touted, or reserve a table at a nearby restaurant. In this era, based on real-time analysis of who’s clicking on what offers and programs, media plans change continuously.

TV, like the internet, but better?
In Backchannel’s vision, TV is a direct medium a la the internet, only, as Mr. Kokernak sees it, much better — without click fraud, phishing scams and other security threats. It’s enough, he believes, to shift much of the money that’s been going into search and other direct media back into TV, replace eyeball counts with the harder currency of response, and ultimately eliminate most upfront deals as dollars gravitate daily in a continuous-improvement cycle toward programming proven to generate response.

Sounds like a pay for performance plan doesn’t it?

When ads work.

4/15/2007 by David Esrati

Other than editing out the personal information- this e-mail was received by the Dayton Bombers:

I have a number of health and physical problems, at age 72, and need to laugh more. For the first time tonight I saw your “Rumanian” ad on TV with Yannick Tifu and had a good one. Does his “cup runneth over”? LOL! Good work by whoever came up for the idea for that ad…it does catch one’s attention. Some “soft” adult humor, like this ad, flies right over the heads of kids, so no harm done. It made me want to attend a game, or maybe regularly.

I no longer drive and sold my car last December. Does RTA stop AT THE DOOR of the Nutter Center? I walk with a cane and easily get winded. What is the number of that RTA line? (Cabs cost a FORTUNE now.) I live at the Oakwood-Kettering line between Far Hills & Ridgeway Rd. and use #5 or #14 for trips to CBD.

What is the lowest cost for a single game ticket? Are they always available on game dates at the Nutter box-office?

What is the lowest cost for one seat at a series of home games bought in advance (for different game counts)? Five games, ten, etc. Is there a seniors’ discount? Golden Buckeye card?

What is the temperature in the stands? Us old folk chill easily so would I need a sweater or jacket or is it always very warm in the stands?

When does the season end? Please mail me some general brochures.

I guess I’ve BOMBARDED the BOMBERS with enough questions for now. I know…that is NOT funny and you hear it all the time. Thanks!

The spot that the new, 72 year old, hockey fan saw?

It was aired on broadcast TV- and was enough to get an old guy, in poor health, motivated to seek information on how to ride the bus to the Nutter Center (not an easy trip from where he lives).

When was the last time your advertising did that? Especially a spot entirely in Romanian?

Of course, they also got a call: “this is America, you should do your commercials in AMERICAN!” (see our post on Casa d’Ice and their signs for more on this subject: http://www.thenextwave.biz/tnw/?p=174

Why the 80-40 rule™ may replace The 80-20 Rule

by David Esrati

Everyone knows the 80/20 rule, in fact an extension of this idea has become known as “the Long Tail.” However, the 80/40 rule might become the most important rule to marketers in the age of search engines and advertising effectiveness.

First- a reminder of what the 80/20 rule is:

Pareto’s Principle – The 80-20 Rule
n 1906, Italian economist Vilfredo Pareto created a mathematical formula to describe the unequal distribution of wealth in his country, observing that twenty percent of the people owned eighty percent of the wealth. In the late 1940s, Dr. Joseph M. Juran inaccurately attributed the 80/20 Rule to Pareto, calling it Pareto’s Principle. While it may be misnamed, Pareto’s Principle or Pareto’s Law as it is sometimes called, can be a very effective tool to help you manage effectively.
Where It Came From
After Pareto made his observation and created his formula, many others observed similar phenomena in their own areas of expertise. Quality Management pioneer, Dr. Joseph Juran, working in the US in the 1930s and 40s recognized a universal principle he called the “vital few and trivial many” and reduced it to writing.
In an early work, a lack of precision on Juran’s part made it appear that he was applying Pareto’s observations about economics to a broader body of work. The name Pareto’s Principle stuck, probably because it sounded better than Juran’s Principle.

As a result, Dr. Juran’s observation of the “vital few and trivial many”, the principle that 20 percent of something always are responsible for 80 percent of the results, became known as Pareto’s Principle or the 80/20 Rule.

Traditional media based advertising has a major flaw: all ads are temporary. The ad in todays paper is in tomorrows trash, the spot in the TV show is over and gone (or skipped by Tivo- or ignored the second time it’s viewed) and most importantly- the old John Wanamaker adage about half his ad budget being wasted- only he didn’t know which half- still, even in todays hyper-targeted media, is pretty close to true. I’ve seen many ads for feminine hygiene products- but will never need them.

The difference between spending your budget on old-school media campaigns and putting your best efforts into online strategy- is that only people interested in your product or service will be interacting with your site- and they are there actively looking for information to substantiate their buying decision.

This is where the 80/40™- rule comes into play- insight directly from The Next Wave: 80% of Internet usage begins in search, 40% of people using search- type your URL into a search, instead of a direct access to your site- and get search results- which could include people talking about your business negatively- or trying to steal your eyeballs- even after you have spent millions of dollars promoting your URL.

Once they get to your site- what do they get? If your site is in Flash, often times they get frustrated. Also- remember, since 80% of use begins in search- are they able to access the specific information they seek? Or just get to your site? Many Flash sites do not allow your visitors to link to interior content with an exclusive URL.

One of the new realities in advertising and marketing is that people are depending on the Internet more for researching purchases- even having access when mobile to the web through WAP enabled sites- or soon- to any site with the introduction of the Apple iPhone. Everything is changing rapidly- and if you don’t make your information search friendly- you won’t be relevant in the decision making process.

How do you solve the 80/40 rule™? Building sites to be search friendly is just the start. Also, remember, it’s not about chest-beating ego sites- it’s about delivering information to the consumer that answers their problem (and the consumer can be a B-to-B customer just as easily as a B-to-C consumer). Your site should be searchable as well. Make every piece of relevant data available- in a web friendly form- and don’t remove material- always update it with relevant news (since links shouldn’t be broken by your maintenance).

But most importantly- always be aware- that when someone is looking for you- 40% of the time, they may get search results instead of directly to your site and someone else may have the answer and steal your lunch- and that is a much bigger problem than the old 80/20 rule.

Why you should never let the newspaper do your ad

4/11/2007 by David Esrati

This before and after ad example will never win any awards, but, it could make the difference between being looked at- and being ignored.

The call came at 6pm tonight: Can you take this ad and make it better? In an hour?

This isn’t how to run a business, or how to get the best possible work, but it’s often the reality in advertising: you can have good, fast or cheap- pick any two.

The original isn’t really an ad at all. It’s an announcement. There isn’t really any type of call to action, or anything that would speak to the consumer emotionally. In fact, it’s mostly about the client- “the first place Dayton Bombers.” The ad was done by the ad department for a previous paid placement- you buy the space- we’ll have a flunky design something.

This is what we had to work with- plus the Kelly Cup logo. Some information could be stripped out- it wasn’t important to the customer: AA Hockey- well, there isn’t another team in Dayton, 1st place- doesn’t really matter in the minors as much as the majors, and the flow of white space is just all over the place.

Dayton Bombers ad done by the Dayton Daily News.

So- take the elements that they have used all season- and try to make them work. The visiting team logo is only important to the hardcore fans- no one is coming to see the visiting team play so we can make that smaller. The McDonalds promo isn’t happening- so we loose that too. We’ve looked at the audience- and know that this is a NASCAR, WWF, Tough Man crowd- that loves to see fights- and to taunt the other team- so making the word “Fighting” a key part of the ad- may get some attention.

Dayton Bombers ad done by The Next WaveIn less than an hour- this is the result. Not an award winner- but, at least bold, clean and making some sort of appeal to the emotional side of the fans.

What do you think?

We also threw together a low-budget TV spot to promote the game. Since we had no existing game footage to use (and couldn’t count on any great stuff in one game) we had to construct a concept that we could control. We were told the leading scorer spoke Romanian (not true) and thought we could have fun with a Borat style low budget spoof. The idea was to do something that would cut through the clutter of local ads (none have ever aired in Romanian in Dayton OH) and get people to look to their sets to see what’s going on. We also posted it on YouTube- where it has received over 600 views in 24 hours. The translator obviously knows less Romanian than we did.

Why good design matters

4/10/2007 by David Esrati

One of the first design and advertising books that really spoke to me was Pentagram’s Living by Design (long out of print). Its basic premise was that design extended to more than graphics, architecture, advertising- but was the entire consumer/brand experience- long before people were talking about experiential marketing.

I was lent the book by a former employer, who had been given it as a gift by one of his professors. After I read it, I tried to talk to him about it, his response: “I don’t read books.” I didn’t stay at that job very long (probably because I did read).

I went to Pentagram’s London office to find a copy, several years later. They were nice enough to give me a copy- that had a section removed- and she copied the missing pages. I later got a complete copy from an art book store in Santa Monica- it’s one of my most prized books.

So, when I stumbled onto Pentagram’s blog- and saw this logo- I was instantly reminded of why I believe design does make a difference.Logo for One Laptop Per Child by Pentagram

Take a look at this elegant logo- then read their description:

New at Pentagram: New Work: One Laptop Per Child
Pentagram has designed the identity and website for One Laptop per Child, the non-profit organization with the goal of providing laptop computers to all children in developing nations.

The identity is a hieroglyph, designed to be universally understood, that utilizes the icons of the OLPC laptop interface, also developed by Pentagram. The website design employs these symbols as the basis for navigation. Each icon leads to a corresponding section of information: the laptop to a section about hardware and software, the arrow to a section about participation, and so on. The site launched in English but is currently being translated into many languages.

For all the companies that don’t think they can afford to do a proper logo on start-up, just remember, you can pay now, or pay later. A well designed brand mark can make the difference between having a corporate identity- and becoming a lifestyle brand, ala Nike, Apple, BMW, Mini etc.

And, by the way, if you aren’t familiar with the One Laptop Per Child initiative, you need to read more about it- it’s truly something that could change the world.

Fallon spins off yet another agency.

by David Esrati

When I first started in this business, a very smart group of people were just breaking the national scene; Fallon, McElligott, Rice opened in 1981 in Minneapolis Minnesota- far away from Madison Avenue and the whole “ad scene.”

It seemed almost as stupid as opening a small ad agency in Dayton Ohio in 1988- the only difference was that these people had all worked at some bigger agencies, and weren’t starting from scratch.

In fact, most agencies start by mitosis (splitting of cells). And, it seems it’s happening again, as some former Fallon people are hanging their own shingle, taking Fallon’s star client; United Airlines with them.

Personally, I find this repugnant. It’s called biting the hand that feeds you. If you can do such great work for the client on your own, why can’t you do it for the company that brought you? I’ve never met Pat Fallon, but, I’ve met some of the people he’s mentored in this business; Luke Sullivan, Sally Hogshead and former business partner Joe Duffy, three of the classiest, nicest, most talented people in the ad world. (Note, I’ve also met another former Fallon/Duffy employee who started his own thing- that was a total jerk, but very talented as a one-trick pony). So, while I’m sure these guys that Ernie gives kudo’s to are all nice guys, I’m wondering what Pat Fallon has done to deserve having so much business and talent- slip out the door lately?

Ernie Schenck Calls This Advertising?: Rhapsody In Minneapolis
Barrie D’Rozario Murphy’s star just went from on the ascent to full zenith mode with United Airline’s decision to go with the fledgling but oh so talented Minneapolis shop, thus ending a long-standing relationship with beleagured Fallon. Am I surprised? Yes. Am I surprised? No. Bob Barrie and Stuart D’Rozario and the work they did for United when the airline was in its darkest hour continues to be one of the classiest and tasteful campaigns in the business. So while I honor all that Fallon has done for United, these guys deserve much of the credit.

The site for Barrie D’Rozario Murphy is www.bdm.net (and like most recent Fallon spin off agencies- it’s in Flash and can’t be found).

While I try to keep up on the superstars of advertising (sometimes it gets a little difficult), I have to wonder: of the great ad agencies in this country- which agency would get the honor of being the best breeding ground for superstar talent? Which agency has spun off the most “hot shops”- and, where are the best places to hone your skills?

I’m also wondering how clients like United, can believe that a small start-up can take over a major account and do a truly better job, just out of the gates. Fallon has demonstrated over the years that they “get it” and are as forward thinking as any agency on the planet.

Is loyalty absolutely impossible in the advertising world anymore?

Any thoughts?

Greater Dayton Advertising Association tries to learn web 2.0

4/5/2007 by David Esrati

Today, the Greater Dayton Advertising Association (formerly known as the Dayton Ad Club) made an effort to finally bring it’s members into the year 2003. The speaker was Matt Bailey from SiteLogic- a Search Engine Optimization consultancy.

Matt did a decent job of explaining the power of social media in his alloted 45 minutes- using eepybird’s Mentos/Diet Coke video as a viral example, discussing how Price Rite Photo got destroyed after a bait/switch deal and the Pork Producers failed attempt to slam a breast feeding support site for using the phrase “the other white milk.”

All great stuff- all stuff we’ve been trying to get the ad club to discuss for over 2 years. All the stuff that we’ve been offering in our Websitetology seminars- but, of course, if you aren’t from out of town, you can’t be an expert.

Matt had a hard time coming up with business to business blogs as an example of generating business- yet, had we been the presenter- we would have been able to point to this blog- to show the b-to-b results. I looked at Matt’s blog- and found this bit:

SiteLogic – Marketing Logic » Why are Analytics so Difficult? by Matt Bailey
Building a website requires an understanding of search engines, as search engines are one of the primary methods of acquiring visitors and customers. However, once the search engine’s information requirements are met, the site has to be able to communicate a different message to the human visitor.

We agree- since 80% of Internet use begins in search, search is key. And, once they get to your site- they need to engage. Apparently Matt’s blog isn’t providing him the kind of traffic he needs. We think we know why.

In the Q&A, someone asked if “tags” in a blog are like Meta tags of old- and he answered they weren’t the same- which is true. Metatags were for the machines; blog tags/categories/taxonomy are for the user. He got that straight- but then, he took what I call a Guru Nosedive- he said that he didn’t use them much, they aren’t that important- content is.

WRONG. At least with WordPress, categories are a way to supercharge a search term, by grouping a bunch of posts into a single post. It’s probably one of the most important SEO techniques we teach- but, alas, the Dayton Ad Club people won’t learn that. Their Executive Director still won’t attend our seminar- and is still building sites the old fashioned way.

It was particularly telling of the 2.0 literacy in the room when there was only one other person in the room that knew what the Long Tail was (besides yours truly) and only a handful (including SAA students) had heard of Digg.

If the Greater Dayton Advertising Association and it’s members (and SAA students) hope to survive, they are going to have to do some serious catch-up. Web 2.0 is only the beginning of The Next Wave, and they aren’t there yet.

To be hated is to be loved? Then why do I really hate local car commercials?

4/4/2007 by David Esrati

Crispin Porter + Bogusky is the über hot ad agency of the last few years. We write about them, other people write about them, and everybody has an opinion. While celebrities have their paparazzi, the hot agencies have their armchair quarterbacks.

We write about them, because we know there are people searching for great, smaller, independent agencies- and hope they take a look at us (we think we understand web 2.0 better than CP+B and can help our clients get bigger bang for their buck)- but also because, well, the ads are interesting to us.

So, while Seth Stevenson writes in Slate why he hates Crispin ads- (and we have a few we detest too)- we thought this section was worth discussing:

Why I sort of hate the hottest ad agency in the country. – By Seth Stevenson – Slate Magazine
Strong reactions. But that’s not necessarily a bad thing. In fact, a vigorous response is precisely what Crispin wants. As CEO Jeff Hicks told me, “We make a conscious effort to have our brands commented on and talked about.” It’s his feeling that in a world supersaturated with content—video games, Web clips, text messages, etc.—to “break through and be noticed is a huge victory.” Crispin is the master of breaking through, getting attention with its provocative TV ads and also with smart viral projects (remember the Subservient Chicken?).

But is all attention good attention? This is an age-old question at the heart of the ad game. And there’s really no right answer. Sometimes a provocative, attention-getting ploy is just what a brand needs. Other times, the tactic falls on its face.

You see, local car dealers have been doing the same thing for years (as did a really obnoxious carpet dealer named Buddy)- they did ads that people talked about- that “broke through” – and that drove our community nuts. Yes, they all have top-of-mind awareness, but, no, it wasn’t the most effective way of advertising. David Ogilvy suggests that you create ads that your mother would be able to like, understand and accept- screaming, being obnoxious, etc. isn’t the answer.

When we were challenged with changing the image of Mendelson’s Liquidation Outlet, we refused to put the owner on his own spots- screaming “I’m crazy Sandy, I’ve got deals” (which of course he did after we ended the relationship)- instead we created the “explorer dude” and his “shopping safari” concept- coupled with the tagline “The first place to look for every last thing”- which cut through the clutter, yet didn’t annoy.

As the industry leader, with everyone scrambling for competitive advantage, Crispin is able to sometimes dicatate to their own detriment. The Haggar Dog Crap spot- while entertaining, may loose the pants in the joke. And while we enjoyed the “Unpimp your auto” campaign for VW- it alienated an audience that could one day be potential VW buyers.

Creating an emotional response is critical in advertising- but, when given a choice, go for something your Mom would enjoy.

the next wave