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The Future of Advertising:
“Can incremental improvement deliver the
Agencies’ future or is reinvention imperative?”
What is the PROBLEM we are trying to solve?
“Ensuring our businesses can be viable and
profitable as well as fun and purposeful”
CONTEXT: Everybody knows things are
changing….
• Consumer behavior
• Tech innovation
• Media fragmentation & reinvention
• Content anytime anywhere any device
• Data scale, complexity and speed
• Privacy and confidentiality
• New trading models
• Disintermediation
• P&L pressure & investment timelines
• Accountability needs & expectations
• Changing business models
• etc
CONTEXT: …less clear on when the change
becomes unavoidable….
“Do I have to address this within my tenure or can we
hold off until I’m safely (profitably) retired and its
someone else’s problem?”
CONTEXT: …less clear on when the change
becomes inevitable….
• For lean forward adopters…which client sectors will move
first; and what will it look like?
– First movers: direct-response transactional industries
(finance, travel, etc)
– Slower migration sectors with less definitive or timely
cause-effect linkages
• Key accelerant = “Closed loop outcomes”
MACHINE MACHINE
PERSON PERSON
I
N
P
U
T
I
N
P
U
T
Interaction
CONSTRUCT 1:
$
High cost ad units …………………………….Low cost ad units
Volumeofadunits
Legacy
pattern
Long tail
CHECK-POINT: What is the current distribution
of ad-units?
$50k 5c$5mm
But how do buyers become 1,000x (or 1mmx ) more efficient…?
What does a planner do when plans dynamically evolve?
Annual Billings
per Buyer
Average Ad Buy
Unit
Units per Head
per year
$ 10,000,000 $ 50,000 200.00
$ 10,000,000 $ 5,000 2,000.00
$ 10,000,000 $ 50 200,000.00
CALCULUS: ‘the mathematical study of change’
Mass
events
1:1
Messages
High cost ad units …………………………….Low cost ad units
VolumeofadunitsVolumeofadunits
Legacy
pattern
What is the evolving distribution of ad-units?
MACHINE MACHINE
PERSON PERSON
Transaction
I
N
P
U
T
F
E
E
D
B
A
C
K
I
N
P
U
T
F
E
E
D
B
A
C
K
Discussion
CONSTRUCT 2:
High cost ad units …………………………….Low cost ad units
Volumeofadunits
Legacy
pattern
Mass
events
1:1
Messages
Volumeofadunits
High cost ad units …………………………….Low cost ad units
Volumeofadunits
Socially scaled
events; with
fully integrated
marketing
programs
1:1
messaging:
executed at
speed & scale
(highly
automated)
Mass
MOVEMENTS
Personal
MOMENTS
COMPARABLES: Learning from others?
• Which industries have already reinvented? Why? How?
– Wall St
– Hollywood
– Retail
– Travel
– Tech
– etc
• What can we learn from others?
• What could our journey look like?
Concept:
Ated
COMPONENTS OF CHANGE:
• From….To
• Finding the optimal ‘people:machine’ balance
LOOK FAMILIAR?
CROSS-DISCIPLINARY ‘DESIGN’ TEAMS INITIATING
High cost ad units …………………………….Low cost ad units
Volumeofadunits
Socially scaled
events; with
fully integrated
marketing
programs
1:1
messaging:
executed at
speed & scale
(highly
automated)
Mass
MOVEMENTS
Personal
MOMENTS
High cost ad units …………………………….Low cost ad units
Volumeofadunits
Socially scaled
events; with
fully integrated
marketing
programs
1:1
messaging:
executed at
speed & scale
(highly
automated)
Mass
MOVEMENTS
Personal
MOMENTS
Ated
EXECUTED AT SPEED/SCALE (AI+MACHINE LEARNING)
Concept:
“MISSION CONTROL” & REALTIME DATA VISUALIZATION
Implications:
UNDERSTANDING THE “WHY?” AND WHAT TO DO NEXT
LEADING TO RAPID PROTOYTPING & CONTINUAL IMPROVEMENT
CHALLENGE: What is the PROBLEM we are
trying to solve?
To what extent this new construct can deliver against the four
dimensions of the business problem?
Are the dimensions equally resolved or in conflict?
What are the side-effects and challenges that will be triggered
by executing this new mental and physical model?
How should these side-effects be offset or resolved?
What may be better constructs?
Multiple versions, experimentation, then rationalization
around new norms
When it comes to the future – there are
three kinds of people; those who let it
happen, those who make it happen and
those who wonder what happened?
John M Richardson Jr

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4A's Transformation 2014 - March 18 - Phil Cowdell

  • 1. The Future of Advertising: “Can incremental improvement deliver the Agencies’ future or is reinvention imperative?”
  • 2. What is the PROBLEM we are trying to solve? “Ensuring our businesses can be viable and profitable as well as fun and purposeful”
  • 3. CONTEXT: Everybody knows things are changing…. • Consumer behavior • Tech innovation • Media fragmentation & reinvention • Content anytime anywhere any device • Data scale, complexity and speed • Privacy and confidentiality • New trading models • Disintermediation • P&L pressure & investment timelines • Accountability needs & expectations • Changing business models • etc
  • 4. CONTEXT: …less clear on when the change becomes unavoidable…. “Do I have to address this within my tenure or can we hold off until I’m safely (profitably) retired and its someone else’s problem?”
  • 5. CONTEXT: …less clear on when the change becomes inevitable…. • For lean forward adopters…which client sectors will move first; and what will it look like? – First movers: direct-response transactional industries (finance, travel, etc) – Slower migration sectors with less definitive or timely cause-effect linkages • Key accelerant = “Closed loop outcomes”
  • 7. $ High cost ad units …………………………….Low cost ad units Volumeofadunits Legacy pattern Long tail CHECK-POINT: What is the current distribution of ad-units? $50k 5c$5mm
  • 8. But how do buyers become 1,000x (or 1mmx ) more efficient…? What does a planner do when plans dynamically evolve? Annual Billings per Buyer Average Ad Buy Unit Units per Head per year $ 10,000,000 $ 50,000 200.00 $ 10,000,000 $ 5,000 2,000.00 $ 10,000,000 $ 50 200,000.00 CALCULUS: ‘the mathematical study of change’
  • 9. Mass events 1:1 Messages High cost ad units …………………………….Low cost ad units VolumeofadunitsVolumeofadunits Legacy pattern What is the evolving distribution of ad-units?
  • 11. High cost ad units …………………………….Low cost ad units Volumeofadunits Legacy pattern Mass events 1:1 Messages Volumeofadunits
  • 12. High cost ad units …………………………….Low cost ad units Volumeofadunits Socially scaled events; with fully integrated marketing programs 1:1 messaging: executed at speed & scale (highly automated) Mass MOVEMENTS Personal MOMENTS
  • 13. COMPARABLES: Learning from others? • Which industries have already reinvented? Why? How? – Wall St – Hollywood – Retail – Travel – Tech – etc • What can we learn from others? • What could our journey look like?
  • 14.
  • 16. Ated
  • 17. COMPONENTS OF CHANGE: • From….To • Finding the optimal ‘people:machine’ balance
  • 20. High cost ad units …………………………….Low cost ad units Volumeofadunits Socially scaled events; with fully integrated marketing programs 1:1 messaging: executed at speed & scale (highly automated) Mass MOVEMENTS Personal MOMENTS
  • 21. High cost ad units …………………………….Low cost ad units Volumeofadunits Socially scaled events; with fully integrated marketing programs 1:1 messaging: executed at speed & scale (highly automated) Mass MOVEMENTS Personal MOMENTS
  • 22. Ated EXECUTED AT SPEED/SCALE (AI+MACHINE LEARNING)
  • 23. Concept: “MISSION CONTROL” & REALTIME DATA VISUALIZATION
  • 25. LEADING TO RAPID PROTOYTPING & CONTINUAL IMPROVEMENT
  • 26. CHALLENGE: What is the PROBLEM we are trying to solve? To what extent this new construct can deliver against the four dimensions of the business problem? Are the dimensions equally resolved or in conflict? What are the side-effects and challenges that will be triggered by executing this new mental and physical model? How should these side-effects be offset or resolved? What may be better constructs? Multiple versions, experimentation, then rationalization around new norms
  • 27. When it comes to the future – there are three kinds of people; those who let it happen, those who make it happen and those who wonder what happened? John M Richardson Jr