New Trends and Convergence


In 2009, Nielsen predicted a list of the top possible Advertising trends for 2010. This list consisted of:


“Optimizing media convergence is a top priority. A better understanding of media convergence will manifest in order to deliver a better return on investment. The ability to accurately measure activity and link online ads to offline purchasing behavior will be critical.


New models emerge to take advantage of smartphones. Accurate mobile measurement will be required to stay head of the snowballing growth of that media platform.


More cross-media ad campaigns surface. The massive growth of online video games played and shared online leads the way for more successful interactive and cross-media advertising campaigns to appear. Growth in the adoption of this innovative advertising across screens and activities will increase.


Commercialization of social networking hubs increase. Social media will provide a new sales channel for establishing product awareness and commercializing brands to better support traditional advertising or text-based ads.


More interesting and interactive online ads appear. Increased use of more creative advertising and content models online such as video, attention-seeking page takeover ads and mechanisms for greater interactivity will drive the next era of Web development.”


Actually, these predictions are pretty accurate and online ads, social media, mobile apps and Internet are the key players this year. As Adweek states “Most marketers plan to up their online video ad spending in 2010”, which isn’t a minor decision at all.



Let’s Talk about Facts


Advertising and online platforms are shaping each other every single day. The content online is evolving really fast. For example, an internet company created a new type of internet ad called ‘hover ad’, which is located at the bottom of the browser and you have the options to ‘collapse’ it or expand it. This kind of banner is much more appealing and catchy; it is also more interactive. If you want, you can check it out online.


Talking about new ways to advertise on the web, Nikon launched a break ground campaign called The Nikon Virtual Touch Experience in order to promote a new camera. They are promoting the product by a Web app, which uses edge-detection technology, so as to give consumers a simulation of the touch-control capabilities for their online photo galleries by using their webcam and then being able to ‘touch’ and control their pictures on the screen. “The Nikon Virtual Touch Experience is a utility that uses a Webcam to let users move through photosets and resize images with gestures rather than their touch-pads or a mouse. Users can download the app at Nikon siteAshtonsCoolPix.com” (Adweek)



But things aren’t only changing online, they are also changing and adapting offline. Yes, I’m serious! Just look at what Los Angeles Times did on their front page! On March 5 this year, they adapted their print edition front page so as to look like their online home page. This means that a big ad was displayed on it and covered almost the whole page. The ad showed Johnny Deep’s Mad Hatter character on 3D. "We knew this was an unusual opportunity to stretch traditional boundaries and deliver an innovative ad unit designed to create buzz and further extend the film's brilliant marketing campaign," said John O'Loughlin, evp of advertising and chief revenue officer at the daily, a property of the Tribune Co.








Sometimes it is a Mix of Online and Offline Stuff and That’s Called CONVERGENCE!


Most theatres are going to install digital projection systems in order to show 3D movies… AND ADS! Keeping up with what’s going on in the film industry, advertisements have to catch up in order to get people’s attention. If you are about to watch a 3D movie, you need to have 3D ads about it and 3D ads of other products or services that are going to be shown during the trailers and ad time.


By the way, Avatar is trying to mix the 3D experience that consumers can get at the cinema with ‘everyday life’. WHAT? Yes, they are having a catchy exhibition at The Grove Mall in LA where people can walk into a big digital display with 3 screens that capture their images, make them look like Na’vi and, then, email them with information about where to buy the movie and other content. “The success of Avatar called for an eye-popping exhibition that would be as engaging as the film and is bound to not only attract attention but draw in shoppers and drive sales of the Avatar release,” said Jeff Cohen, managing partner for Inwindow Outdoor.





Why Aren’t You Talking about Social Media Here?



Patience! If you are interested in social media, you’ll love this bit. Adweek explains it better than I could do:

“Facebook's plan betrays an ambitious agenda for the company to take its deep trove of social data and spread it around the Web through a set of social plug-ins, which among other things will make its "Like" buttons ubiquitous and let sites customize user experiences. That information then gets fed back to Facebook and broadcast to the user's networks. By compiling a list of what interests and motivates people, Facebook could out-Google Google by building the most powerful "database of intentions," as author John Battelle termed it in 2005.

(…)

"This is as massive of a move as we've seen on the Internet in a long time," said Michael Lazerow, CEO of Buddy Media, a tech platform for brands on Facebook. "For the first time, we have the ability to think about how to optimize these viral loops for brands in much the same way as game developers have."

(…)


Levi Strauss & Co. is one of the first marketers to use Facebook's new tools. The company sees adding social features to Levi.com as a chance to overcome a challenge: e-commerce doesn't allow people to try on clothes and receive friends' opinions. (Technology can't yet let people try on virtual clothing.)


(…)


But with Open Graph, Levi's, which has tagged all items in its online store with Facebook "Like" buttons, can connect shoppers with friends. There's also a Friend's Store, where users can see what their friends and others like.
"We think it's going to change how people shop online, and make buying jeans more fun, dynamic and engaging," said Doug Sweeny, vp of brand marketing at Levi's.”




Convergence is such a huge thing right now that there are even tutorials online about how to do advertising in this new era and there are also different opinions about it. I’m more about the positive perspective of it. Convergence gives you new tools and ways of reaching people with your message but others have new things to say. To read about convergence in a different way, check out this article.

Many times, it’s really useful to look at things from another perspective… that’s something that convergence gives you too, different perspectives…



Cheers!

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Conglomerates Behind Ad Industry

So you thought that your favorite Ad Agency was independent, creative, rebel and authentic… I’m sorry to break your naïve view about it but, most probably, your beloved agency belongs to a huge communication conglomerate.


What’s a Conglomerate?

Well, according to “Cambridge International Dictionary of English” a conglomerate is “a company that owns several smaller businesses whose products or services are usually very different”.


Not totally clear yet? The online dictionary “Word Reference” states a conglomerate or empire as “a group of diverse companies under common ownership and run as a single organization”.


Which are the Conglomerates in Advertising?


Actually, there are several conglomerates in this business. It is said that the biggest ones are Omnicom, WPP, Publicis Groupe and Interpublic. These conglomerates own agencies like Leo Burnett, Saatchi & Saatchi, BBH, Grey, Ogilvy & Mather, Santo, Y&R, BBDO, DDB, Lowe & Partners and McCan Worldwide just to name a few. Surprised? In reality, most of these conglomerates own different business from various orientations: MEDIA, ADVERTISING, MARKETING, DESIGN, PR, RESEARCH, FULL SERVICE AGENCIES, SPECILIZED AGENCIES, PRODUCTION, PUBLICITY, INTERNATIONAL OR REGIONAL/LOCAL AGENCIES, etc. So these conglomerates are kind of big empires (that’s where I agree with the Word Reference’s definition of conglomerates) that not only control and own different businesses in the same area of expertise that are actual competitors one with each other but they also own several businesses in related areas which result in a gigantic chain of power. Ok, try to breathe!


Moreover, Adbrands provides a very complete list in their website, where you can find out more about these companies and others!


I also recommend to visit Havas’ website, which is another communication conglomerate and ‘the umbrella brand which incorporates the entire EURO RSCG Worldwide network as well as’ other agencies. You are going to be able to find different organigrammes of the company as the one shown below.





Need more?


Try Media Square plc website and read this article about the BIG FOUR (that’s how these huge conglomerates are called).




Cheers!

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Interested in Saatchi?



Check this out!

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“How sweet of you to think that advertising copy is written from the heart”.

(Charles Saatchi. My Name is Charles Saatchi and I am an Artoholic, Everything You Need to Know about Art, Ads, Life, God and Other Mysteries – and Weren’t Afraid to Ask… 2009. Phaidon Press Limited. London.)

Charlie Saatchi started without any idea of how life was going to surprise him. He founded the largest advertising agency in the world, created some of the most famous and successful ad campaigns in the UK, became a powerful and influential figure in the art world, especially in Britain, opened his own art gallery in London and married Nigella Lawson. Quite impressive, huh? Well, even though this guy is a living legend in the Ad and Art Industry, he manages to maintain a very low profile and protects his privacy from media curiosity.



First Steps in Ad Land


He started as a voucher clerk in a “tiny advertising agency in Covent Garden. (…) one of the advantages of it being a tiny agency is that one day they got desperate when their Creative Department (one young man) was off sick, and they asked me if I could try and make up an ad for one of their clients, Thornber Chicks. This ad was to appear in Farmer & Stockbreeder magazine, and hoped to persuade farmers to choose Thornbers, as their chicks would grow to provide many cheap, superior quality eggs and a fine return. I didn’t know how you write an ad, or indeed how to write anything much more than ‘I will not be late for Assembly’, for which I had been provided much practice. So I looked through copies of Farmer & Stockbreeder and Poultry World, chose some inspiring sounding words and phrases, cobbled them together, stuck on a headline – I think I stole it from and old American advertisement – and produced ‘Ask the man who owns them’ as a testimonial campaign featuring beaming Thornber farmers. The client bought it.” (Charles Saatchi. My Name is Charles Saatchi and I am an Artoholic, Everything You Need to Know about Art, Ads, Life, God and Other Mysteries – and Weren’t Afraid to Ask… 2009. Phaidon Press Limited. London.) His advertising career started from one day to another and he saw himself immersed in this fascinating world so, when he was 22, Charles got an interview with the creative director of Benton & Bowles, Jack Stanley, after failing in every other interview in ad agencies. Fortunately, Stanley hired him and put him to work with John Hegarty. “We hit it off, and even better he was very talented and I would look good bathed in his afterglow.” (Charles Saatchi. My Name is Charles Saatchi and I am an Artoholic, Everything You Need to Know about Art, Ads, Life, God and Other Mysteries – and Weren’t Afraid to Ask… 2009. Phaidon Press Limited. London.) After working for a short time with him, Saatchi and Ross Cramer became a creative duo. Charles was the copywriter and Cramer the art director but after a while, they moved to CDP where they worked for 18 months before creating their own business: Cramer Saatchi. There was no way back (thanks god!).


When remembering this time, Saatchi explains in his book: “I was very lucky to get into CDP in 1966, on the coat-tails of working with Ross Cramer as an art director/copywriter team. (…) The creative director was the dour and reticent Colin Millward, as close to an advertising genius that Britain would produce, and with a magnificent North Country accent. He dismissed my copy-writing efforts as piss-poor, but patiently helped me get better, in what became a delightful relationship. Fortunately for me I also found an ally in David Puttman, a young account manager who at the time was a super-cool Paul McCartney lookalikee, who sold my campaigns to some high profile clients, which did me no harm at all. ”(Charles Saatchi. My Name is Charles Saatchi and I am an Artoholic, Everything You Need to Know about Art, Ads, Life, God and Other Mysteries – and Weren’t Afraid to Ask… 2009. Phaidon Press Limited. London.) Some of these ads are the racy ads for Ford and the ones for Selfridges and Lewi’s.


Going back to Saatchi’s first creative consultancy, Cramer Saatchi won the Health Education Council account thanks to Ross’ child. He was waiting at the school door while talking with another parent who worked at the Council. Luckily, she commented him that they were looking for an ad agency. Soon after that, Cramer Saatchi agency was producing the antismoking campaign for the Health Education Council, which captured a lot of attention and media coverage, and the ad that pushed them up to the sky and is considered to be one of the top 10 British ads of the century: “it’s a strinkingly simple image of a young bloke in a V-necked sweater. His palm rests tenderly on his enormously pregnancy bump as he gazes at the camera with a doleful, resigned expression. The text reads: ‘Would you be more careful if it was you that got pregnant?’ Capturing at once the downside of permissiveness and the nascent women’s liberation movement, the ad presaged the more thoughtful 1970s after the extended party of the sixties.” (Mark Tungate. Adland, a Global History of Advertising. 2007)



Copywriting: “if you wanted something basic and crude you would come to me and hope for the best”. (Charles Saatchi. My Name is Charles Saatchi and I am an Artoholic, Everything You Need to Know about Art, Ads, Life, God and Other Mysteries – and Weren’t Afraid to Ask… 2009. Phaidon Press Limited. London.)



1970 was a crucial moment in his career, Ross Cramer left the agency and Charles’ brother came to replace him: Maurice Saatchi, a very successful young man who left his business, he was part of the relaunching of Campaign (the powerful ad magazine), to start Saatchi & Saatchi with his brother. Wise decision!


“What I adored most about my advertising agency was the fanatical devotion to keeping our clients happy, our desperate longing to have our campaigns succeed for them, and to win as many big accounts as possible”. (Charles Saatchi. My Name is Charles Saatchi and I am an Artoholic, Everything You Need to Know about Art, Ads, Life, God and Other Mysteries – and Weren’t Afraid to Ask… 2009. Phaidon Press Limited. London.)


The new agency became appealing to very talented figures in the industry such us Hegarty (Charles’ ex creative duo), Sinclair, Muirhead, Martin Sorrell and Tim Bell. Moreover, the agency had big dreams and was doing everything to achieve them. In 1975, they signed an agreement with Compton agency in New York which gave Saatchi & Saatchi the chance to reach clients like Mackintosh and Procter & Gamble. The agency grew rapidly and started winning big accounts like the British Airways one.






Saatchi & Saatchi + Margaret Thatcher


Political ads are “Dim, unsubtle and charmless ever since I stopped doing it, he answered modestly.” (Charles Saatchi. My Name is Charles Saatchi and I am an Artoholic, Everything You Need to Know about Art, Ads, Life, God and Other Mysteries – and Weren’t Afraid to Ask… 2009. Phaidon Press Limited. London.)


In 1979, Saatchi & Saatchi became the Conservative Party’s ad agency and they began to create extraordinary ad pieces for them. For instance, they produced the famous poster that cites “Labour isn’t working” which is said to crystallize a then perceived truth. “In reality the poster only ran at a handful sites, but the media furore it provoked made it one of the most cost-effective ads in history.” (Mark Tungate. Adland, a Global History of Advertising. 2007) The Saatchi & Saatchi unstoppable success began. By the way, the Conservatives won the elections and Mrs Thatcher came to power that year…


The Saatchi brothers were the most famous and successful admen in UK and owned a global advertising empire. In 1986, these brothers “had 18.000 employees in 500 offices across 65 countries.” (Mark Tungate. Adland, a Global History of Advertising. 2007). Saatchi & Saatchi grew to become one of the largest agencies in the world. What started like someone else’s dream became true for Charles Saatchi. He started without knowledge or passion about it but he finally positioned himself as one of the most important ad figures of the industry.


Regarding advertising, he personally states: “I recommend advertising to all, especially if you have no apparent academic skills. It’s easy money, and whatever small abilities you have can be out to good use somewhere in an ad agency, whether it’s your charm and wit for client hand-holding, technical talents suited to the complex world of media buying, or if you must, writing slogans and soundbites for power-hungry politicians.” (Charles Saatchi. My Name is Charles Saatchi and I am an Artoholic, Everything You Need to Know about Art, Ads, Life, God and Other Mysteries – and Weren’t Afraid to Ask… 2009. Phaidon Press Limited. London).



Rethink “Nothing is impossible”


“In 1988 Saatchi & Saatchi was… the biggest advertising group in the world. Three years later, its shares had lost 98 per cent of their value and the company was no longer number one” (Alison Fendley, taken from Mark Tungate. Adland, a Global History of Advertising. 2007). Instead of walking away, the Saatchi brothers called for backup in order to help them rebuild the agency but different discussions and incompatible interests with the shareholders obliged Maurice Saatchi to leave his broken empire. Many clients and co-workers showed their support to Maurice but there was nothing else to do: he had to go.


However, the Saatchi brothers did it again and in 1995 they founded M&C Saatchi, an international ad agency that has offices in London and New York, self-proclaimed to specialize in ‘brutally simple ideas’.





“I started collecting art before I went into advertising. And anyway, advertising is for the young, bright-eyed and bushy-tailed.” (Charles Saatchi. My Name is Charles Saatchi and I am an Artoholic, Everything You Need to Know about Art, Ads, Life, God and Other Mysteries – and Weren’t Afraid to Ask… 2009. Phaidon Press Limited. London.)


However, Charles Saatchi, whose living heroes are “Gregory Peck in To Kill a Mockingbird, Marlon Brando in On the Waterfront, Cary Grant in North by Northwest, Burt Lancaster in Sweet Smell of Success and Gary Cooper in High Noon” (Charles Saatchi. My Name is Charles Saatchi and I am an Artoholic, Everything You Need to Know about Art, Ads, Life, God and Other Mysteries – and Weren’t Afraid to Ask… 2009. Phaidon Press Limited. London.), is now focused on the Art Industry but we cannot deny that his actions in the Ad Industry were impressive, different and outstanding. Actually, Charlie Saatchi made an excellent use of strategy and talent to make his way through the Industry and become someone important and famous. He made his ambitions true and even though he fell during the journey, he became stronger and reinvented himself. As it is stated in his book: “Charles Saatchi has been one of the moving forces of the modern age. Founder of the global advertising agency Saatchi & Saatchi, and the most influential art collector of our time, he has vigorously shaped the contemporary art scene while contradictorily remaining a reclusive, even elusive figure.”


In my opinion, Charles’s life and influence in advertising is a refreshing hope for those of us who are barely starting and dream of being able to keep the vision and the determination to fulfill our ambitions and succeed, at least in a small percentage of what he’s done, in such an interesting, passionate but competitive world.




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Ad Regulation in the UK

The UK regulates and controls advertising by voluntary self-regulation. This decision generates a lot of controversy due to the fact that many other countries are against it. They argue that self-regulation is not enough and that legal codes are necessary to provide audiences and consumers with good protection. However, the UK is a striking example of how well this method can work in comparison to the other ones available in the global market.



Different Types of Regulations


There are three different classes of regulations: de-regulation, statutory control and voluntary regulation. De-regulation’s philosophy lies on the idea that you should let the market forces prevail. The market forces would regulate advertising and claims or comparisons must not be misleading since they should be capable of substantiation. Making misleading claims is not good for the brand or product because if they sell something that is not true, consumers will not buy again that product or any other product of that brand. De-regulation states that companies will not sabotage their relationship with consumers and they will not make misleading claims or comparisons and, therefore, there is no need of regulation. On the other hand, it can be argued that regulations are to protect consumers’ interests, and any brands without any reputation to protect can do whatever they want because they do not have relationships with consumers to maintain. On the other hand, statutory control is based on legal codes. The UK’s TV regulator is called OFCOM which looks at the airtime and how it is distributed. It is permitted to have up to 12 minutes per clock hour over a day’s programming, which is relatively restricted compared to other countries. Furthermore, Ofcom also regulates sponsorship arrangements and product placement. However, regarding legal codes and laws, Ofcom outsources clearance to the broadcasters under a company called Clearcast which “role is to assist advertisers and their agencies to ensure that their proposed advertising complies with the relevant laws, regulations and industry codes”. (www.clearcast.co.uk). Every commercial needs to receive a certification of approval from Clearcast before going on air. What is more, this company offers three steps to advertising agencies: it either examines storyboards, scripts and proposals for code compliance or agencies can submit a rough cut for approval or they can just wait until the ad is finished and submitted for mandatory approval. Statistics show that 40 % of the commercials do not go through the first two steps. If the commercial is approved by Clearcast, it goes on air. However, there might be viewers’ complaints after the transmission. They can find the ad offensive, for example. These complaints go to the Advertising Standards Authorities (ASA), which investigates the ad and the complaints can be upheld or rejected. If the complaints are accepted, the ad is going to be cut/withdrawn. On the other hand, some commercials are produced in order to go banned so they can use that as a PR tool or, in some other cases, they are produced to be shown online or only to get a creative award (these are called chip shop ads). Going back to the three types of possible regulations, voluntary regulation system is based on the idea that advertising industry regulates itself. This system offers speed, efficiency, minimal cost, versatility and adaptability.



UK


The UK adopted the last method. Ofcom, which is an autonomous non-governmental organization, delegates the control of ads to the Advertising Standards Authority (ASA) that is also responsible of controlling print and direct marketing advertising. “The ASA is the independent body set up by the advertising industry to police the rules laid down in the advertising codes. The strength of the self-regulatory system lies in the independence of the ASA and the support and commitment of the advertising industry, through the Committee of Advertising Practice codes. The ASA also aims to protect consumers and create a level playing field for advertisers.”(http://www.digital-advertising.co.uk/uk-advertising-compliance-notes.pdf). In addition, the ASA is supervised by the BCAP which is financed by the Ad industry. What is more, Clearcast, as I have already said, is in charge of approving every commercial before it goes on air. Sometimes, this company is blamed for not having a good judgment when complaints are upheld: it is said that it can be over neurotic or literalistic in interpreting the code or too liberal in it. In addition, we can say that the UK voluntary self-regulation method operates ‘post-hoc’ because it relies on complaints from the general public and the ad industry itself. These complaints, as I have already stated, are investigated by ASA and can be upheld or rejected. If they are upheld, the Agency and the advertisers are directed to discontinue or amend the offending material. Moreover, the possible sanctions are: adverse publicity in the ASA bulletins on its web site, the media concerned will put/delete the ads, trading privileges- commission entitlement- are withdrawn and, ultimately, the media puts a block on the advertiser and its agency. The first sanction is not really a punishment because it is said that bad publicity is always good publicity. However, the other three sanctions have hard consequences. Whether the ad continues or not, this relates to the context. Generally, public complaints are based on offensive or misleading claims and advertising industry’s complaints are based on unfair comparative ads.



To conclude, in my opinion the way that advertising is regulated and controlled in the UK works really well owing to the fact that voluntary self-regulation has different virtues that are important to point out. First, the industry is able to publicize itself, which allows them to sell themselves, and is good PR for the advertising industry. Second, there is no necessary legalese. In other words, codes can be written in a simple, easy way to understand language and this shows the intentions behind the rules. There is compliance with the spirit of the code and not just the wording and, by doing this, you avoid people trying to find loop holes to escape and get round the law. Moreover, misleading or offensive ads can be amended or removed more quickly in comparison to legal control which takes longer. Self-regulation makes advertisers remove these ads quicker and they are willing to do it in order to fulfill their PR goals. Complaints are taken really seriously because advertisers do not want to create a negative image with the general audience. Furthermore, it is said that by using voluntary self-regulation you avoid over-restrictive legal controls that may limit creativity. What is more, I think that these virtues are strong enough and that UK voluntary self-regulation works in a smooth way thanks to them. Advertisers care about the business and are willing to take off air any possible threaten to their industry. Image is a wonderful selling tool and advertisers are not going to risk it. That is why this method of regulation works so well, the same industry is covering his back and there are fewer possibilities to make it go wrong because it is just against their will and interests.

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