Ad Age Celebrates The Consumer, Disses The Agency World

Ad Age has named The Consumer as their 2006 (?) Agency of the Year.  Kudos for sticking with the idea, even though the Time "me-too" criticism will undoubtedly follow.

Jim Nail of Cymfony says "Ad Age got it wrong."  I think it's a matter of perspective - and here's a different take on why I think this is a bad pick.

Given:  companies need a fundamentally "good" product and/or service.  That is, a company must produce something that meets consumer needs better than alternative choices.  (Brian, when's that Big Idea coming?)

Understood:  Clever advertising won't help a "bad" product become good.  It may help in the short-term, but you can't fool consumers once they've had a bad experience.  As the saying goes, you can put lipstick on a pig, but it's still going to be a pig."

However:  (1) Advertising is about marketing communications.  Agencies produce campaigns, not products.  (2) Invention is difficult; innovation is easier.

So:  Agencies invent the concepts behind campaigns - from scratch - that get consumers riffing and sketching their innovative ideas that turn into YouTube videos and blog posts.  Plus, we're only talking 1% of the public here - and strictly speaking, I'd say that 1% is more likely innovating, not inventing.

Let's deconstruct Mentos/Diet Coke.  The majority line of thinking goes something like this:  Mentos got it right for embracing the community and was rewarded with a 15% spike in sales.  Coke got it wrong for taking a pass and was "forced" into a community-based response.  However, the best thing the video did for Mentos was to raise brand awareness - which doesn't mean that more people are going out and eating more Mentos.  If anything, the short-term spike was probably from people going to to replicate the experiment.  This is where Diet Coke got it RIGHT - the video wasn't going to drive long-term value from people consuming product.

If you believe otherwise, then you must also agree that more people are buying Bic pens for writing after hearing that they're good for picking Kryptonite locks.

The point is - brand awareness doesn't necessarily drive sales.  You may think that the Ritz-Carlton is a great hotel brand.  But if you never stay there - does it matter?

So agencies are forced with the unenviable task of inventing new ideas, while facing increasing pressure from the misconception that consumers can do it better.  But there's no single agency that can be singled out for methodically harnessing consumer input, so go with option #2:  the consumer.

Look, I get the whole social computing idea.  But realistically, let's not forget about the "institutions" - they create the concepts like PC guy vs. Mac guy, bodygrooming, or even Head-On that inspire consumers to do their thing.

And remember, just as "the consumer" incorrectly connotes one massive, homogeneous swarm of people, "the agency" consists of highly creative individuals, too.

UPDATE:  Ad Age publishes its "A-List" a day later...can we just call TBWA\Chiat\Day Agency of the Year?

Comments

[Jim Nail]

I've been pondering the Coke reaction to the Mentos thing, too. If Coke is about a refreshing beverage, then you're right, Mentos thing doesn't add any value. But that's not really what their advertising is about -- it's always about fun, getting together with friends/family, etc. So why not embrace the Mentos thing as another expression of the fun. Besides, it's a fad. It will be forgotten the day after people blow through a couple of liters and have to clean up after it. But the feeling of fun and not taking themselves too seriously will linger. And that adds brand value....

[Pete]

Good point - the concept passed through my mind, but I'm not fully functional on Amsterdam time yet. Coke definitely missed out on the brand communication angle and another concept I missed - engagement.

In this situation, the well-orchestrated integrated marketing response would have linked an online contest to a trade/mdf promotion, circling back to mycokerewards. This would have driven not only short-term sales but also longer-term loyalty.

[Lewis Green]

Pete,

I agree with you. As a former magazine Executive Editor, I think Ad Age took a hike on this. Like "Time," this is a cop out. If you have a special edition for the Agency of the Year, name an Agency of the Year.

Consumers are not and cannot by definition be an agency. Ad Age should rename the concept or create an additional one, if they lack the guts and courage to name an agency.

As you can see, I am annoyed by magazines that care more about subscriptions and selling advertising than they do editorial integrity. Ad Age should be ashamed of itself.

[Dionysus]

I think Adage, along with the Times is making a big point.

Times are changing, and it is no longer business as usual.

If the consumers are effectively coming up with the innovative and creative way of transforming an ad into "Compelling Content", with the users actively seeking and discussing the ads, then they have accomplish, something worthy of being "Agency of the Year"

I understand your thoughts about the institutions that have come up with great
ad campaigns. However, I don’t think they can produce them fast and often enough.
The new generation of consumers has a much shorter attention span, and watching the same commercial for 6 months, doesn’t become anymore effective. It actually gets to be annoying. Your lucky Head On, I don’t have TiVo (yet).

The new Ads2.0 (consumer generated) will become much more effective, as it can highly target specific demographics. And I think it will be the consumer of that demographics who will have the greatest insight on there niche.

Meaning Ford should not use 1 commercial for the entire Asian American Market,
Promoting 1 type of vehicle.
http://www.marketingvox.com/archives/2006/12/22/for-fords-edge-largest-ever-digital-spend-targeting-asian-americans/

The only thing Asians have in similarity is that we use chopsticks and we have National Pride. These types of ads, have always been used here in the States… And guess what?
It doesn’t work. As this research shows, marketers failed on 3 key elements.
Motivation 36%, Messaging 31% and Media 83%

Mass advertising of brands is dying and the audiences are fragmenting at an exponential rate, due to broadband penetration. So if the Agencies don’t adjust, you may see many more consumers taking the crown of Agency of the Year.

Insights from Research against $1 Billion in Advertising Spending
http://veotag.com/player/?u=zyraehhltl

Just my 2 cents.
Cheers!
Dionysus

[Gavin Heaton]

The UGC area is coming along very strongly, but it seems to me to be outstripping the strategic thinking and planning of many agencies. It is one thing to hand your brand over to your consumers, but quite another to think through potential use scenarios that could at least guide some of the resulting conversations.

And I don't necessarily mean "guide" in terms of manipulating the conversation. More in terms of providing a quality outcome. Having access to a paint brush doesn't make me a Picasso ... and my forays into digital video make it clear that there is a large difference between my abilities and a professional's. Sure we can all be "part" of the "agency", but we shouldn't yet quit our day jobs ;).

[Dionysus]

UGC in the Super bowl. It should be real interesting to see how it turns out.

http://news.com.com/Jane+and+Joe+get+in+on+Super+Bowl+ads/2100-1024_3-6147833.html

[Ron Shevlin]

Hmmmm...if the "consumer" is the agency of the year... then what do marketers need all the agencies that out there for?

Just wondering. :)

[Pete]

Hi Gavin - nice point; a good indicator of agencies that "get it" will be the ones that guide consumers into vehicles that start conversations and brand engagement.

Ron - yeah, I didn't see holding company stocks drop; in fact most have risen. Not to say agencies are safe long-term - they certainly need to figure out this CGM thing...

[Ron Shevlin]

First off, Pete -- stock prices wouldn't necessarily have dropped that fast after something like the Ad Age announcement. And not surprisingly, since a number of sources have found the marketing expenditures are expected to rise this year.

My comment was tongue-in-cheek. I think a lot of agencies need to do a better job at the AGM thing (agency-generated media) before worrying about CGM.

[Pete]

Understood that your comment was tongue-in-cheek. So was mine.

Love the internet. :)