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Pandemic Impact on Marketing: Prudent Action Required by Advertisers

17 Mar

Action

Ad revenues are projected to contract by $20 billion this year alone, with no clear insight into the lasting impact of COVID-19 on the $690 billion global ad industry (source: eMarketer).

Setting aside the human costs of the pandemic, businesses in general and, advertisers in particular, face some startling decisions as the world implements various forms of social distancing in an effort to stem the spread of the virus.

In the U.S. alone, the NBA and NHL have suspended their seasons, the NCAA Basketball Tournament has been cancelled, Major League Baseball has delayed the start of its regular season and The Master’s Golf Tournament has been postponed. We reference sports for one simple reason, the level of 2020 marketing sponsorships. Advertising and promotional dollars invested by advertisers in these properties alone was estimated by Kantar Media to be $2 billion.

In the U.S. alone, the NBA and NHL have suspended their seasons, the NCAA Basketball Tournament has been cancelled, Major League Baseball has delayed the start of its regular season and The Master’s Golf Tournament and Kentucky Derby have been postponed. Sports is but one example and we reference it for one simple reason, 2020 marketing spend levels. Advertising and promotional dollars invested by advertisers in these properties alone was estimated by Kantar Media to be $2 billion.

Undoubtedly, advertisers will be seeking answers to the following questions as they begin their contingency planning efforts this week:

  1. Of the marketing and advertising commitments we’ve made, what can be cancelled outright?
  2. For those commitments that we’ve made in events, sponsorships or programs that have been suspended or postponed, can we recoup the impacted pro-rated investment amounts?
  3. How will media owners/sellers address upfront or volume-based commitments when it comes to media valuations in the context of advertiser rebates and or cancellations?
  4. If we pull-back on our marketing and advertising activities, what will the impact be on our annual statement of work, agency deliverables and associated fees?

Complicating this assessment for advertisers is the fact that so much of the industry operates on an estimated billing basis. Unfortunately, the advertiser’s line of sight is limited as to what percentage of estimated and pre-paid costs have been spent versus that which remains in the hands of their agents and intermediaries.

It would clearly be ideal to make go-forward decisions with a solid financial understanding when it comes to exactly how much budget can be pulled back and or quickly re-allocated. The risk of a bad decision in this area can often outweigh the costs of a delayed response. To assist in this area, marketers may want to consider conducting billing and agency fee reconciliations to help clarify where on the annual spending continuum they’re at when determining how best to approach potential budgetary reallocation decisions.

The time and cost required to conduct mid-year status checks and financial reconciliation work is nominal versus the inherent risk of making decisions without a complete picture. Importantly, engaging an independent firm to undertake these endeavors allows the marketing team members and their agency partners to focus their collective efforts on reviewing plan commitments, escape clauses and assessing resource re-allocation decisions.

Prudent, measured action in this scenario is a win-win for all parties.

Prudence is foresight and far-sightedness. It’s the ability to make immediate decisions on the basis of their longer-range effects.” ~ John Ortberg

 

 

 

 

 

Are You Overpaying for Convenience?

30 Dec

sign with the words Stop Over PayingMarketers are under a lot of stress with increasing demands on their time, constant pressure to deliver results and the seemingly never-ending challenge to accomplish more with restrained budgets.

In this context, what marketing team wouldn’t be open to turnkey solutions provided by existing agency partners, including the ability to easily access specialized skills and secure additional resources for quick-turn projects – rather than onboarding a new agency partner?

Put yourself in this situation… your external agency roster is already too broad, budgets are locked, and expanding current agency scopes of work is a challenge. Even if a new agency/ vendor might be desired it is disruptive and time consuming to work through procurement, vet possible candidates, on-board a newly selected vendor, negotiate a new statement of work, and move forward. Sound familiar?

Therefore, out of necessity Marketers in this situation often turn to a current agency partner and seeking to shift dollars from one project to another or increase staffing in order to alleviating pressure. In the process, it wouldn’t be unusual if the agency suggested engaging the services of an in-house studio/ department or an affiliate agency. The suggestion may come with the enticing proposition of being able to self-fund incremental work through savings generated by the affiliate’s involvement, or via the affiliate’s mode of remuneration (e.g. principal based media buying). Best of all, the agency may offer to handle billing for the related party and will offer to treat related party billings as though they were coming from a third-party vendor (as pass-through costs).

Problem solved. Right? Be wary.

“What is right is often forgotten by what is convenient.” ~ Bodie Thoene

Having your agency partner(s) tap an in-house resource or affiliate on your behalf, knowingly or unknowingly, as easy as it may seem, comes with serious financial risk and control issues. What is the mode of remuneration? How much is the affiliate being compensated and by whom? What mix of staff is actually being deploying on your behalf? How many hours or value is being delivered for the fees? What level of transparency do you really have into “actual” versus “estimated” affiliate fees and expenses?

If you cannot readily provide answers to these questions, your organization runs the risk of overpaying for services, and or not understanding “what you are actually buying and receiving.”

As it is, few client/ agency agreements have adequate controls to govern the appointment and utilization by an agency of an in-house, affiliated, or holding-company-owned resource. The lack of contractual guidelines leaves marketers open to negative financial impact that can weigh heavily on working dollars and expectations.

Common risk areas associated with agency use of a related party include:

  • Lack of a formal client notification/ approval requirement
  • No competitive bidding requirement
  • No rate sheet or billable hourly rate detail
  • No time-of-staff reporting
  • No job reconciliations
  • Non-transparent pricing/ margins
  • Application of unauthorized mark-ups

We certainly understand the desire by the agency community to engage their affiliates on client work and appreciate the potential benefits to the advertiser when it comes to tapping these diverse resources.

That said, experience suggests that the practice should be regulated and carefully monitored. Importantly, rules and requirements must be clearly documented in the client/ agency agreement when it comes to agency use of an in-house studio or any other related party or agency. Further, the affiliate must understand that they are subject to the same terms and conditions documented in the agreement.

Once full transparency is guaranteed, remuneration and billing rules are documented and understood, appropriate authorization practices are put in place, then tapping an agency partner’s extended resource network makes good sense.

 

 

Navigating Marketing’s Turbulent Waters

26 Oct

waypointHaving choices can certainly be a good thing. But an overabundance of options carries its own set of challenges. Thom Browne, the American designer once said that: “When people have too many choices, they make bad choices.” 

While an apt description of the $560 billion global advertising industry or not, the expansion and fragmentation of the advertising sector, fueled by rapid advances in technology has complicated things for many of the industry’s stakeholders. Consider the following:

  • In addition to traditional TV, there are over 100 streaming services available in the U.S.
  • According to Internet Live Stats, there are 1.7 billion websites on the worldwide web
  • Fast Company estimates that there are over 525,000 active podcast shows
  • Author Scott Brinker identified 7,040 MarTech solutions in his 2019 Marketing Tech Landscape
  • Agency Spotter indicates that there are 120,000 ad agencies in the U.S., 500,000+ worldwide
  • Inc. Magazine has identified 700,000 consulting firms across business functions globally

As the plethora of options have grown, so has the level of angst and uncertainty among marketing practitioners and suppliers alike. For an industry that has always prided itself on its ability to adapt to change, the current environment is somewhat unsettling.

Complicating things is the consumers growing disdain for advertising, which the New York Times profiled in a recent article entitled: “The Advertising Industry Has a Problem. People Hate Ads” in which it chronicles some of the attitudes and behaviors being exhibited by consumers that could have a profound impact on the industry. In the article, the Times referenced a recent report from Group M, which put forth the proposition that these are “dangerous days for advertisers.”

Let’s face it, there are few “tried and true” approaches that marketers can fall back on to guide their strategic and resource allocation decisions in this environment. Further, given the rate and rapidity of change from a legislative and technology perspective there are simply not that many industry guideposts to assist marketers in effectively charting a course forward or in evaluating progress.

While we believe that there will be a contraction in the supply chain, marked by a consolidation of agency brands, consulting firms, martech solutions providers and media outlets, we don’t believe that this suggests a return to simpler times.

To reduce the level of dissonance, marketers will likely seek to streamline their “world” by rightsizing their agency networks, clarifying roles and responsibilities among their suppliers, transitioning certain work in-house and taking a more considered and cautious approach to the adoption of “shiny new objects” whether related to technology or messaging options.

Given the continued focus by their C-Suite peers on marketing performance, CMOs will maintain a dual focus on driving revenues, while achieving efficiencies across their supply chain to boost working dollars as a percentage of total marketing spend. This is not an either/ or option. Recognizing this “reality” an advertiser’s agency and consulting partners can provide critical support by focusing on the identification of waypoints on the path to performance, rather than pursuing a grandiose focus on future-think outcomes. In the words of 17thcentury Japanese shogun leyasu Tokugawa:

“Let thy step be slow and steady, that thou stumble not.”

 

 

Clean Up in Aisle 12. Sponsored by…

28 May

Asian grocery noodle aisleSome of the world’s largest retailers have their sights set on garnering a larger share of the ad market. And why not. Amazon is expected to generate $11 billion in advertising revenue this year, growing to $15 billion in 2020 (source: eMarketer).

So it comes as no surprise to learn that other retailers have taken steps to shore up their ad platforms. In April, Walmart acquired Silicon Valley-based Polymorph Labs and their content sensitive digital ad serving and analytical capabilities to help strengthen its Walmart Media Group and Target is rumored to be interested in acquiring WPP’s Triad Retail Media unit to support its Roundel media division. All three retailers are actively courting advertisers and their agency partners to pitch the media and product sales benefits of their data driven advertising offerings.

On one hand, one might question why is this even newsworthy? Traditional retailers have long been in the ad business, selling advertising to the brands that they carry on in-store media, in weekly ad circulars, in price-item television and radio spots and in OOH. Thus the expanded focus on sophisticated, data-driven digital advertising solutions should come as no surprise.

That said, the potential to integrate target audience information with web browsing data, shopper data and location data to serve up relevant ads in an environment where consumers can immediately click-to-buy and receive their merchandise in a day or two has the potential to revolutionize the retail ad industry.

As retailers refine their offering and simplify platform use, they will quickly cannibalize traditional search and digital display advertising activity. Factor in the ability to tap retailers omnichannel databases, with the goal of refining ad targeting to drive digital media efficiency and the appeal of retailer digital ad platforms increases exponentially.

Consider Walmart Media Group’s pitch to advertisers; with “90% of Americans shopping at Walmart every year” and “160 million visitors” in-store and online every week, Walmart Media Group helps brands to “reach more customers at scale and measure advertising effectiveness across the entire shopping journey.” 

On the surface this evolution of retail advertising certainly appears to be a win-win for the industry. Retailers benefit from a new, high margin revenue stream that is largely technology driven, relying on automated platforms. For the agency community, specialist agencies are already coming to the fore that focus exclusively on assisting brands in assessing and realizing opportunities associated with these retailer digital ad platforms. And, from a brand perspective, serving up targeted ads in a brand safe, fraud free environment with the potential to immediately convert consumer interest to sales is a compelling value proposition.

Perhaps the greatest challenge for manufacturers as more retailers join the fray, will be to balance the ongoing need to strengthen their brands and for some, to build their own direct-to-consumer offerings, while funding their participation in retailer digital ad platforms. Make no mistake, while a brand may be able to build a solid business case for investing with their retail partners, retailer leverage over brands to influence whether or not they buy-in and at what level will be real as the balance of power pendulum continues to swing in favor of omnichannel retailers.

 

 

 

 

4 Appropriate Limitations On Agency Remuneration

12 May

fourIt is our belief that agencies, consulting firms, contractors, employees and yes, even auditors, are entitled to earn as much money as they can in return for services rendered. Further, we are agnostic when it comes to the mode of remuneration, whether those fees are predicated on a resource based, outcome-based or value-based pricing model.

We also recognize that client organizations have the intelligence and wherewithal to negotiate professional services agreements that satisfactorily address both their needs and their budgets.

That said, experience has taught us that sound Client/Agency agreements should also place limitations on the revenue earned by an advertiser’s agency partners. In short, agency revenue should be limited explicitly to those forms and amounts of revenue that are intended and accordingly defined within the agreement, or otherwise agreed to in writing by the client. Period. The end.

Unfortunately, in our contract compliance audit practice, it is too often that we find agreements which don’t effectively restrict agency revenue to that which has been negotiated and memorialized in the contract between the parties. This can lead to misunderstandings and in rare cases bad behavior on the part of professional services providers seeking to unjustly optimize their revenue yield.

Below are four examples of appropriate contract limitations for advertisers to place on agency revenue, once the remuneration program has been negotiated:

  1. An agency should not be allowed to earn money on the handling or holding of client funds. Examples of this could include the earning of interest or “float” income and rebates or bonuses earned from the use of corporate credit or purchase cards to pay third-party vendors for purchases made on behalf of a client.
  2. All expenses, including those for third-party commitments and out-of-pocket expenses, should be billed on a net basis, at the agency’s cost, with no mark-up allowed.
  3. Discounts, rebates or any other benefits earned by the agency, its holding company and or related parties tied to the investment of client funds and or prompt payment to third-party vendors should be remitted back to the client upon receipt of such benefit.
  4. For direct labor based fees, the agency should not be allowed to charge for employee hours in excess of the full-time equivalent (FTE) standard (e.g. 1,800 hours per annum). Quite simply, once the FTE threshold has been met, the agency has fully recouped employee direct labor and overhead costs and realized the agreed upon profit margin.

One further measure of protection for advertisers is the addition of contract language requiring the agency to be transparent, to fully disclose all transactions and the flow of client funds along with the presence of any rebates or incentives received by the agency directly or indirectly.

Please note, that the “limitations” listed above are not meant to restrict an agency’s ability to earn a fee that is reflective of their delivered value. The intent is simply to limit agency revenue to those sources agreed to by both parties, thus providing the requisite protection to the advertiser.

“Confidence… thrives on honesty, on honor, on the sacredness of obligations, on faithful protection and on unselfish performance.” ~ Franklin D. Roosevelt

Heritage or Baggage. What’s Your Perspective?

2 Apr

ddb-content-logo2-2019-1320x660Two different agency holding companies, with two different perspectives on the value of brand heritage and the role that heritage will play in their respective cultures moving forward.

In late 2018, WPP made the announcement that it was going to merge J. Walter Thompson, the world’s oldest agency brand with Wunderman. The new agency was christened Wunderman Thompson. This came on the heels of WPP’s decision to consolidate digital agency VML with Young & Rubicam renaming the combined entity VMLY&R.

Make no mistake, we are proponents of the holding companies moves to consolidate their brands to streamline operations, improve accountability and to simplify marketer access to agency services. That said, for the nostalgics among us, it was sad to witness the disappearance of two of the industry’s most venerable brands.

Thus, we were pleasantly surprised when Omnicom introduced its new corporate identity for DDB in March. The firm chose to leverage its heritage, adapting its original logo and paying homage to its three founders Ned Doyle, Mac Dane and Bill Bernbach by incorporating the agency’s original name, Doyle Dane Bernbach into its new identity.

A spokesperson for the agency stated, “As other agencies are commoditizing their agency names and turning away from their founding principles and visions, DDB is doubling down on the values that Doyle, Dane and Bernbach founded our agency on – creativity and humanity.”

In the words of Bill Bernbach: “Getting your product known isn’t the answer. Getting it wanted is the answer.”  

Be Big Somewhere… 3 Keys to Media Planning Success

20 Feb

apertureIn the past, there were two overarching concepts that helped to form the basis of an advertiser’s successful media planning efforts.

Be Big Somewhere – Simply stated, this approach held that in order to break through the clutter and gain the attention of an advertiser’s target audience one had to focus their media in places and at times where they could achieve a significant share of voice vis-à-vis the competition.

Aperture – Core to this concept was the belief that each consumer had an ideal time and place when they could be reached by an advertiser’s message. Simultaneously, there were times when the consumer was either prepared to buy or was gathering information regarding a potential future purchase. The intersection of these two points was the “aperture” and was considered to be the ideal point to expose consumers to an advertiser’s message.

Simple proven concepts that had withstood the test of time… up to a point.

At a time marked by the hyper-fragmentation and proliferation of media where consumers have access to a plethora of choices for accessing information and entertainment, it is questionable whether or not these concepts still hold true.

While the dynamic of a rapidly evolving media marketplace creates exciting content access options for consumers, it poses challenges for advertisers and their agency partners. For example, while the average amount of time consumers spend with media is significant, averaging 721 minutes per day (Source: Statista, 2019) determining the right time and place for targeting an advertiser’s message is difficult at best:

Avg. Time Spent with Media by Consumers in Minutes per Day (2017)

  • TV                                            238
  • Mobile (non-voice)               197
  • Online (laptop, desktop)     123
  • Radio                                         86
  • Other Connected Devices      33
  • Print                                          24
  • Other                                         21

         Total Minutes Per Day         721

Further, over the course of a typical day, studies have shown that consumers are exposed to somewhere between 4,000 and 10,000 ad messages. This exposure leads to increased levels of consumer apathy and message burnout. Thus, achieving a meaningful share-of-voice to break through the clutter, and then to effectively reach the target audience and finding the right aperture in this environment, is certainly more complex.

Compounding these environmental factors, at least for advertisers working with multiple media agencies, is the added challenge related to the development of an integrated, holistic planning process to help optimize media allocation decisions across agencies, platforms, publishers, networks, etc.

Moving forward there are three evolving, but yet to be perfected, media planning tools whose furtherance would greatly aid advertisers and their media partners:

  1. Cross-channel, multi-touch attribution models – In order for advertisers to truly optimize their media investments, it is imperative that they be able to assess the role that each consumer touchpoint plays in achieving their goals.
  2. Cross-platform media measurement tools – Simply put, planners need tools (e.g. common metrics) that will allow them to better understand campaign reach by platform and overall, while being able to calibrate total content ratings, regardless of where consumers view the message.
  3. Artificial intelligence platforms – AI has the potential to greatly assist media planners (and buyers) in analyzing multiple data sets to aid in everything from audience segmentation to creating and comparing alternative strategies and leveraging data on a real-time basis to optimize buys while a campaign is underway.

As the industry continues to perfect these tools and agencies master their application, the ability to plan media seamlessly across platforms will be greatly enhanced. In the words of NHL Hall of Famer, Wayne Gretzky:

A good hockey player plays where the puck is. A great hockey player plays where the puck is going to be.”

 

 

Advertising Delivery Models Are Evolving. How Will the Holding Companies Respond?

12 Jan

dreamstime_xs_127777381When agency holding companies were birthed, they did nothing that directly impacted client businesses. They were corporate entities that owned a number of smaller agencies and the attendant portfolios of real estate, trademarks, copyrights and licenses attached to those agencies. Their primary role was to create shareholder value through structural leveraging.

As time progressed, three things happened that form the basis of the challenge faced by agency holding companies today.

Firstly, aided by low barriers to entry, there was a proliferation in both the number of agencies and the types of functional specialist shops that came to be. In the early days there were “above the line” full-service agencies and “below the line” shops such as sales promotion, direct marketing and PR. Over time, specialists in diversity advertising, shopper marketing and digital media have come into vogue. Highly focused agencies continue to emerge today, as witnessed by the arrival of Amazon “specialist agencies” that assist marketers seeking to do business with or sell goods online via Amazon. Along the way, specialization led to fragmentation and full-service agencies fell by the wayside. Marketers in turn saw their agency networks expand in size as they added specialist firms to their rosters creating a range of agency stewardship and coordination challenges.

Secondly, the holding companies continued to acquire marketing services and advertising agencies. Part of their acquisition strategy involved bringing on specialist firms across a range of competencies to fill out their service offering. Another part of their strategy involved the acquisition of branded agency networks to consolidate activity within select clients (e.g. WPP’s acquisition of Ford agencies J. Walter Thompson, Ogilvy & Mather and Young & Rubicam) and to create walled silos that would allow them to handle competitive advertising accounts. Financial benefits were realized by consolidating functions and paring expenses in areas such as human resources, legal and finance while allowing the acquired agencies to operate independently in virtually every other area.

Finally, along the way the holding companies began to compete as agencies, creating stand-alone client service entities such as; Enfatico (Dell), Team One (Toyota), GTB (Ford) and We Are Unlimited (McDonald’s). The value proposition with these dedicated agency teams was to provide larger advertisers with scalable, seamless solutions served up by the most talented personnel from across the holding company’s portfolio of agency brands. While the premise was certainly compelling, the holding company model did not readily lend itself to a blended workforce concept and often suffered from the lack of centralized business platforms.

Fast forward to 2019 and advertiser preferences remain unchanged. Advertisers desire breakthrough, transformational business solutions served up on an integrated basis and of course, they want them faster, better and cheaper.

In their search for a better “mousetrap” advertisers have begun to take certain aspects of their advertising in-house and or have engaged non-traditional partners including management and technology consulting firms to augment their traditional agency rosters. Of note, the consulting firms, represented by global monolithic brands, blended workforces, common processes and centralized business platforms have made significant inroads with CMOs. This has raised speculation among many industry pundits with regard to whether or not the consulting firms would supplant advertising agencies. Fueling the speculation has been the management consulting firms’ pursuit of agency acquisitions to round out their marketing/ advertising service offerings, it will be interesting to see how well they fair integrating those acquired firms into their organizations both structurally and culturally.

Many in the industry are waiting for the revelation of a new “agency model” that will emerge to magically address advertiser desires and resolve agency holding company challenges. It is our belief that these pundits will likely be waiting for some time.

Advertisers, for their part, will continue to seek out and retain responsive, agile marketing partners that can provide breakthrough, scalable business enhancing solutions. While the idea of an integrated, end-to-end provider is intriguing, it is likely not feasible. Rather, assembling a team of specialists, albeit narrower marketing agency networks, with the advertiser serving as strategist and integrator across the “marketing ecosystem” as Martin Sorrell, Chairman of S4 Capital refers to it is the most likely solution.

As for agency holding companies, we believe that Arthur Sadoun, Chairman of Publicis Groupe got it right when he stated that “the old holding company model is dead” in April of 2018. Advertisers will not embrace a one-stop solution from any of the holding companies. Thus, the holding companies will likely continue their recent focus on right-sizing their networks through the consolidation of both brands and functions and the divestiture of redundant and non-core entities. After all, how many agencies that place or distribute digital media or in-house studios does a holding company need? There may also be a subtle shift from a focus on cost reductions to enhancing the holding company’s ability to cost efficiently scale operations. This could include an expansion of the old “shared services” model, looking beyond HR, Finance and Legal to create centers of excellence around functions such as Data Sciences, Technology, Media Procurement and Production to provide clients across their network with faster, better and cheaper solutions in these areas.

While many lament the decline of the agency holding company, other than the world’s top advertisers, most organizations hire agency brands. While some of the agencies they hire may be owned by the same holding company, more often they are not. Thus the challenge of finding “integrated” solutions for the development of relevant, quick, agile and engaging solutions has been the purview of marketers… at least since the days when the full-service agency model was the standard. As such, the evolution of the advertising delivery model will more than likely be driven by advertisers and less so by agency holding companies.

 

 

 

2018 | Articles That Piqued Our Readers Interest

31 Dec

WTop 5ith 2018 now in our rearview mirror and all of our attention focused on the coming year, we thought that you might be interested in learning what our “Top 5” blog posts were over the past twelve months, according to our readers.

While familiar issues such as; trust, transparency and brand safety continued to be at the fore of advertisers’ attention, new topics including programmatic audio, AI-powered personalization and federal privacy regulation crept into our field of view. Click below to access 2018’s top posts.

  1. 3 Keys to Strengthening Client-Agency Relationships
  2. 4 Keys for Optimizing Direct Labor Based Remuneration Systems
  3. Agency Compensation: The More for Less Trap
  4. Advertisers: What Does the DOJ Know About the Ad Industry That You Don’t?
  5. Will Programmatic Ever Address Advertiser Concerns?

One Hundred Years Later. Has Anything Really Changed?

27 Dec

Sears Catalog CoverWe’re all familiar with the old adage: “The more things change, the more they remain the same.” Strange as that may sound, the notion behind this saying is simple. No matter how complex a situation may appear, nor the rate or nature of changes that we may be dealing with, there tends to be an underlying corollary that remains constant.

To test this hypothesis, I spent some time browsing through the archives of Duke University’s John W. Hartman Center for Sales, Advertising & Marketing History to gain a perspective on what marketers were dealing with at the beginning of the twentieth-century. As importantly, I wanted to compare their reality with the environment in which we operate today.

Surely the fundamentals facing marketers had to have changed, I reasoned. There have simply been too many advancements and technological improvements for the aforementioned adage to hold true. However, a quick review of some key events then and now might suggest otherwise… you be the judge:

Then

  • 1915 – Millions of dollars are spent on advertising and public relations to stimulate consumer demand
  • 1915 –  Modern market research begins, resulting in ads being increasingly targeted to specific audiences
  • 1915 – The first transcontinental telephone line opens from NY to San Francisco
  • 1916 – Self-Service retailing is invented by the Piggly Wiggly chain of grocery stores
  • 1916 – U.S. automotive and truck production exceeds one million new units
  • 1918 – The New York Times begins home delivery
  • 1918 – Ad legend James Walter Thompson sells his namesake agency to Stanley B. Resor and partners
  • 1918 – The Federal Government takes control of the nation’s telephone and telegraph systems
  • 1921 – Badly hurt by the depression, Sears, Roebuck & Company Chairman Julius Rosenwald pledged $21 million of his own funds to bail the company out

Now

  • 2018 – Billions of dollars are spent on advertising and earned media to stimulate consumer demand
  • 2018 – AI aided market research and predictive analytics allow marketers to better chart the consumer journey
  • 2018 – Number of worldwide mobile phone users expected to pass 5.0 billion
  • 2018 – Amazon Go unveils revolutionary check-out free convenience stores
  • 2018 – U.S. Plug-in-Electric Vehicle sales estimated to eclipse 400,000 units
  • 2018 – The New York Times achieves 2 million digital only subscribers
  • 2018 – The J. Walter Thompson brand is merged with Wunderman to form Wunderman Thompson
  • 2018 – The Federal Communications Commission repeals net neutrality rules
  • 2018 – Sears files for bankruptcy, closing 140+ stores, Chairman Eddie Lampert submits $4.4 billion bid to buy the chain and stave off closure

While the size and scale of the issues that our industry was dealing with are certainly different, the fundamentals are actually more similar than not. Whether in the context of advancements in retail models or modes of media distribution to the impact of emerging product sectors and government regulation or even developments related to changes in agency ownership, there is a certain “sameness” to our industry… even after an eventful 100 years.

Hopefully we can find comfort in the aforementioned adage and confidence in the fact that our predecessors were able to successfully navigate the challenges which they faced to help create what has become one of the world’s most stimulating and dynamic business sectors, advertising and marketing.

As we reflect on the passing of another year and contemplate the challenges and opportunities that will present themselves to us in 2019 all of us at AARM would like to offer up an old Irish toast to each of you:

May the best day of your past be the worst day of your future. May your troubles be less and your blessings be more and nothing but happiness come through your door.

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