We face a digital reality today where our operational model is being extended but not, as much as its theoretical domain. In order to survive in this brand new ecosystem our profession has to adapt but not necessarily to change. We have to rediscover our inherited quality of asking “what”. Because the strength of our profession lies in our ability to turn “what if” in “what is”. The third part of this presentation asks: What really happened to advertising agencies by the digitalization of our world?

1. DON DRAPER GOES
DIGITAL AND
BEYOND
Part 5

2. What happened to communication?
What really happened to communication?
What happened to people’s heads?
What happened to strategy?
What happened to agencies?
WHAT’S NEXT?

3. WHAT AGENCIES SHOULD DO ABOUT IT

4. Early Majority Late Majority
34% 34%
Early Adopters C
13.5% H Laggards
Innovators A 16%
2.5% S
M
HYPE PENETRATION
Don’t believe the hype

5. converted
UNHEALTHY
zealot
new
convert
humble
seeker servant
skeptic meta-digital
UNHEALTHY
unbeliever
Digital Conversion Scale

6. David Ogilvy
“We Sell or else”

7. The high-complexity nature of Digital programs
makes it the most labor-intensive medium in
the advertising industry.

8. What to do
Desirable Useful(able) Sociable
Concept
What to say Big Idea
Insight
T-Shaped Creativity

9. The cost of providing basic Digital services is
directionally double that of traditional “full
service” agency fees, when expressed per
dollar of media spend. This results in an
increase in the so-called agency effective
commission rate.
Source: Digital Economics, Joe Burton, AAAA

10. Clients should expect the relative increase in
agency resources to be offset by relatively lower
media spending as a result of better targeting,
measurement and proven effectiveness
increases. One should also understand the
impact on lower external production costs (as
former third-party labor requirements are
absorbed within the agency).
Source: Digital Economics, Joe Burton, AAAA

11. These changes in cost structure cannot be
regarded as “good” or “bad” in and of
themselves. A change or shift in marketing
expenditures is best evaluated by examining its
effect on consumer marketing perceptions or
buying behavior in short, by comparing how
marketing results will be altered by the overall
marketing program.
Source: Digital Economics, Joe Burton, AAAA

12. David Ogilvy
“You pay peanuts you buy Donkey Kong”

13. 1. Avoid the “shiny new toy” syndrome.
2. Educate your clients about the differing economics between
traditional and Digital, especially budget holders
3.Recognize the need for a continuous strategic planning and
research process and build in flexibility
4. Resist the temptation to involve everybody, just because they
are interested
5. Manage media, production and agency staffing/fee budgets
(“investments”) together versus in silos
6. Going Digital all at once may not be realistic; tier campaigns
and markets and set realistic goals
7. Keep agency resources focused on the work, not on
attending meetings
Advice for new recruits
Source: Digital Economics, Joe Burton, AAAA

14. Trust = (knowledge* x intimacy) / risk
*The rate of learning for the industry has to be at least equal with consumer’s rate of adaption and faster than its rate of change

15. George Lois
“Still it is 20% inspiration and
80% perspiration ”

16. WHAT IS GOING TO HAPPEN?

17. O how they cling and wrangle, some who claim
For preacher and monk the honored name!
For, quarreling, each to his view they cling.
Such folk see only one side of a thing.

18. Paul Rand
Digital* is the manipulation of form and
content. Content is the idea. Form is what
you do with this idea.

19. Manipulation of Form

20. The mad men are now running the asylum. We
never had such freedom. Freedom not only to
manipulate content but form as well. And
clients seem to love it.

21. The future of advertising isn’t digital.
It’s in ideas* that solve business problems in a
culturally positive way.
Digital is just the new creative revolution.
*and its glorious past

22. Mad Men tweet

23. WHAT DO YOU THINK?

25. Mark Earls, Gareth Key, BBH Labs, Guy
Kawasaki, David Armano, Josh Rose, Alex
Bogusky, R / GA, DIGITAS, Patou Nytemans, Faris
Yakob, Rory Sutherland, Howard Luck Gossage,
David Ogilvy,, Bill Bernbach, Paul Rand, Stephen
King, Lee Clow, Steve Jobs, Zoe Lazarus, Buddha
and many others*
*Acknowledgments

26. Antonis Kocheilas, Managing Partner LOWE Athens
email: antonis.kocheilas@loweworldwide.com
linkedin: http://gr.linkedin.com/pub/antonis-kocheilas/6/9b8/844
I am a strategic planner by trade. I am deeply interested in all developments
in the theory and practice of Strategic Marketing and Integrated
Communications. I have a fascination around the evolutionary impact of
technology and Media on the human experience. Therefore I read extensively
on the subject and keep myself up to date in every way accessible.

27. Thanks a lot.
Tell me what do you think?