The document provides an overview of a class on the future of advertising. It discusses how the structure and culture of advertising agencies has changed over time, with the roles in agencies expanding to include digital skills. It also outlines how advertising is shifting from traditional to digital media as audiences increasingly consume content online. The guest speaker, Scott Litman, then discusses trends in marketing, noting that customers are funding more targeted digital advertising and that relevance and testing are important.

1. The Future of Advertising
Class #ADV 3041-01 | Spring 2009 | Mondays 1-6pm | Rm 416
Instructor: Tim Brunelle
SESSION #03—FEBRUARY 9, 2009
EVOLUTION OF ADVERTISING AND THE ROLES IN THE AD AGENCY
Creative Commons Attribution & Non-Commercial License

2. Today:
1. Brief history of advertising + the ad
agency and various roles inside it
2. Siesmic shifts + panic = opportunity
BREAK
3. Guest speaker: Scott Litman (Magnet360)
BREAK
4. Guest speaker: Alan Wolk (Creative
Strategist, The Toad Stool Consultancy NYC)
5. Assignment #1 discussion
Next steps

3. Today:
1. Brief history of advertising + the ad
agency and various roles inside it

4. Structure :: Then

5. Structure :: Then
*Account *Creative *Agency
Service Leadership

6. Structure :: Then
*Account *Creative *Agency
Service Leadership
*Production
*Administration
*Media
*New Business
*Studio
*Research

7. Culture :: Then
1. Male

8. Then :: Culture
2. Alone. Singular. Mysterious. Glamorous.

9. Then :: Culture
3. Difficult to quantify effectiveness and value.

10. Today:
1. Brief history of advertising + the ad
agency and various roles inside it
2. Siesmic shifts + panic = opportunity

11. [Culture changes]

12. [Advertising changes]

13. Let this situation ferment for 30+ years...

14. http://www.adweek.com/aw/content_display/news/agency/e3i265790c0e524ea2bf3a3dc974fee7052

15. “ These guys all live as
perpetual teenagers.
They’re all hanging
around, goofing off.
It’s like college. ‘Trust
Me’ is kind of about
the death of
[advertising] and the
old ways dying out,
how TiVo and the
Internet are
destroying the way
these guys do things.”
—Eric McCormack
http://featuresblogs.chicagotribune.com/entertainment_tv/2009/01/eric-mccormack-tom-cavanagh-trust-me.html

16. http://bmorrissey.typepad.com/brianmorrissey/2009/02/decline-and-fall-of-advertising.html

17. “The truth of the matter is ... much of the
ad world is still out of step with reality.
These arguments about ‘the work’ betray a
cultural problem. It’s like the finance guys
still thinking it’s OK to buy corporate jets
and give out billions in bonuses. They don’t
get it. Times have changed.”
— Brian Morrissey

18. Structure :: Now?

19. *Lead generation
*Application development
*Digital reputation management
*Paid Search
*Email marketing
*Social media
*Community management
Structure :: Now?
*Yellow Pages
*Online media *Content Strategy
*Digital out-of-home
*Account *Creative *Agency
Service *Loyalty programs Leadership
*Production
*SEO *Public relations
*Administration
*Design *Media *Mobile
*New Business *Direct mail
*Studio
*Planning
*Web Design *Analytics
*Multi-variate testing

20. Culture :: Now?

21. You’re entering the ad industry at a time of
vast cultural and institutional change, not
unlike 1960. Once again, long held beliefs,
processes and traditions are being proven
ineffective, too expensive and wrong—and
it hurts. The evidence is in the comments.
In the chaos there is opportunity.

22. Guest speaker: Scott Litman
http://magnet360.com

23. Evolution of Advertising
February 2009
© 2009 Magnet 360, LLC

24. Introduction
Past Experience
! Have launched, built, bought and sold
over a dozen entities.
! Three start-ups have had exit events with
5X+ returns.
Built and Operated connect@jwt
One of the worlds largest digital
!
marketing agencies.
! Staff of nearly 500, with 9 offices in NA & UK
! Revenues approaching $100 Million
! Servicing over 10% of the fortune 500
A partial list of our client experience
© 2009 Magnet 360, LLC Confidential and Proprietary

25. Market Size
The Market Is Large, But Ever Changing
! US Marketing Services $31.1
Billion (AdAge)
! 2008 Marketing Spending
Down by 1.7%
• Traditional Media (TV,
Newspaper, Magazine) has
had a double digit reduction.
• Digital Media has grown with
a 7% increase in display
advertising and a 27%
increase in pay per click (TNS
Media Intelligence)
!
Source : Forrester Research, 2008
© 2009 Magnet 360, LLC Confidential and Proprietary

26. Market Trends
Spending Will Follow The Audience
! Marketing dollars will go where the eyeballs are
! Marketers will focus more on performance based media
• The net result, we will see a $3 Billion dollar shift in services over the
next 4 years in the U.S. (Forrester Research)
Base: US Adults
Source : Forrester Research, 2008
© 2009 Magnet 360, LLC Confidential and Proprietary

27. The Digital Divide
Technololgy Adoption Impacts Audience Behavior
! The Mass Audience vs. a Fractured One
• Years ago, three media buys could hit 80% of the adult public
• Today, we have unprecedented & improving tools for audience
targeting and segmentation
! The rapid pace of technical change has marketers grasping on
how to reach their audience
• How should a marketer reach you?
• How should a marketer reach your parents?
• How should your marketer reach your grandparents?
© 2009 Magnet 360, LLC Confidential and Proprietary

28. Market Trends - Client Situation
The Challenge for Marketers Today
Do More with Less
!
Embrace an ever changing technology landscape
!
Barriers Exist
Vendors Compete vs. Collaborate
!
Limited Value from the Holding Companies
!
© 2009 Magnet 360, LLC Confidential and Proprietary

29. What’s a Holding Company?
WPP Group, plc
Over $10 Billion across 250+ companies
!
© 2009 Magnet 360, LLC Confidential and Proprietary

30. Trends in Marketing
Customers Are Funding The Last Mile
! This includes :
• Paid Search
• Lead Generation
• Email
• Loyalty
! Other trends :
• Geo-targeting
• Multi-variate testing
© 2009 Magnet 360, LLC Confidential and Proprietary

31. Not All Advertising Is Equal
Recent Example
© 2009 Magnet 360, LLC Confidential and Proprietary

32. Email Marketing
Relevancy and Timing
© 2009 Magnet 360, LLC Confidential and Proprietary

33. Lead Gen Sites
© 2009 Magnet 360, LLC Confidential and Proprietary

34. Test Everything - Multi-Variate
© 2009 Magnet 360, LLC Confidential and Proprietary

35. Business Model for Social Media
A Solution?
© 2009 Magnet 360, LLC Confidential and Proprietary

36. Guest speaker: Alan Wolk
http://alanwolk.com
*Check out Alan’s presentation on
Slideshare.net/AlanWolk

37. Assignment #1
“Rethink your current portfolio and put it
entirely online.”
DUE: Monday, February 23
+ Be “Always in beta”
+ Use at least two of any tool/system you
want (flickr, YouTube, Extendr, Tumblr, etc.)
+ Include name, title, bio, contact info, tags,
descriptions, links. (Spell check!)
+ Customize as you see fit
+ Have a friend click through it for you

38. Monday, February 16:
“Building blocks: Paid Search + Online ads”
1. Guest speaker: Nina Hale [dot] com
2. Guest speaker: Jennifer Iwanicki
(BannerPalooza.com)
usefullunacy.typepad.com
tim_brunelle@mcad.edu

39. Thank you.
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