Is Digital Interaction Pulling Its Weight?

Agency bosses too old and change resistant, claims Sorrell

(Advertising Age) NEW YORK - WPP chief executive Sir Martin Sorrell claims that brands are not spending enough online because the people who run their agencies are too old and resistant to change.

"Delivering the opening keynote session at ad:tech New York yesterday, Sorrell criticised brands for investing an average of just 13 per cent of their marketing budget online despite the rapid increase in digital media consumption.

The boss of WPP, parent of OgilvyOne and Wunderman, claimed that brands are being preventing from spending online due to a lack of understanding on behalf of the agencies handling their media budgets."

"WPP's [five year] strategy can be summed up in one simple sentence: new markets, new media and consumer insight," he told ad:tech delegates.

THE CRITICAL CONVERSATION:
RE-THINKING THE MEDIA MIX - WHEN SHOULD INVESTMENTS BE ALIGNED TO MEDIA CONSUMPTION?

Drinking with some digital marketers last evening, I mentioned a stat that the average under-25 spends 5 hours a day on Facebook, a starting change in media consumption. But before we rush to purchase every online ad avail on Marc Zukerberg's brain child, my colleagues wisely noted that the average 20-something is also simultaneously watching TV, listening to iTunes, texting on mobile and probably checking every 60 seconds on the Domino's Pizza Oven app to monitor the progress of dinner. The medium is not the message. In today's communication planning, the brand experience as represented in digital media has become a critical support plank for the brand promise. Not always sufficient, but necessary.


With all due respect to Sir Martin, there are limitations in our present approach to digital media. Catalogs and other mailed communications deliver more more revenue per touch - and more certain revenue -- than digital media. The first wave of digital communications has hit a saturation wall of effectiveness. While email is scarcely 10 years old, remember, "You've got mail," open rates and end-actions rates are sinking under the volume. Ditto for online display ad banners. They didn't exist five years ago, but OA response is down by 50%, and network CPMs are in the tweens to single digits because of excess inventory. UHIPs like MSN home page reach eyeballs but at a negative ROI for most advertisers. And while pre-roll video is hip, hot and showing good numbers, there a lot of questions of exactly what constitutes an "interaction". Viewing through completion is much lower.

The Five P's of Enfatico and Dell

Dear Enfatico,

It's been lovely. An audacious venture to change a traditional marketing services model and challenge a client culture to embrace marketing over manufacturing and logistics. Still, the brickbats from the blogs missed the point. For certain, 90-days wasn't long enough to build an agency, but it was a running start to the right goal envisioned by Casey and Mark.

The hard work and long hours were never an issue. The people are bright and passionate. I hired the US SMB client team, organized the work, and will challenge anyone to find a more productive and dedicated group of client service professionals. We took on 100% of the business in record time, and delivered far and above any reasonable capacity expectation with near zero defects.

With Dell, marketing is predicated on the traditional measures of price, product, positioning and promotion - and a fifth, process, that trumps quality of work. Balancing "the speed of Dell" with the most impactful and effective ad promotion is the core challenge for year two of the relationship. Dell is well on the way to placing great business products in market, our "Take Your Own Path" campaign is working in key global markets to change perceptions (www.takeyourpath.com) though pricing power -- and profits -- remain elusive. But squeezing the agency on revenue will not be the answer to the client's overall cost structure, ask HP and IBM, and it won't keep good people in place.

For my part, I will submit there is actually a sixth "P" in this equation:

Peace, out. Time for a new challenge.

Wishing you all the best.

Milagro Bath Towel

At last, the perfect combination of size (a generous 30" x 60") and softness, price and color. These luxury bath towels by Matouk come from Pioneer Linens, a West Palm Beach institution. I got them in white and aquamarine. Matouk makes my favorite sheets and robes as well. (via Pioneer Linens, West Palm Beach)