Ad industry’s new business cycle is now a ‘loser’s game’ warns top consultant
One of the most respected agency consultants in the world has said “each new business win is a loss for the industry”, and warned agencies are rapidly putting themselves out of business.
Michael Farmer: ‘The situation is not healthy’
Speaking at the Secrets of Agency Excellence – SAGE – conference this morning Michael Farmer, who consults with global networks and independents, described the ad industry as it stands as “a loser’s game” for all parties.
Farmer, author of the book ‘Madison Avenue Manslaughter’, said the agency of the future would be one that starts from the mindset of a consultancy rather than just being the creator of campaigns.
Interesting, but if the agencies become consultancies with an emphasis on “creative” whose going to do all of the required research and, especially, the media work – other silos owned by the agency – or the client?
Isn’t there a danger of so separating the research and media functions from the creative that much will be lost due to poor communication and the plain fact that most “creatives” are totally at sea when it comes to understanding what can be done in media? So what will result will be the inherent assumption that prime time TV on the broadcast TV networks is the platform of choice – like it used to be some time ago – and short shrift will be given to any alternatives, simply out of ignorance.
Or are the clients’ marketing directors going to bridge this gap – somehow?
This is what I’ve experienced. Clients are now wanting more for less consistently, thanks in part to the exact pricing mindset that marketing has itself caused. Put that in line with inflating costs of living and now I understand why many of my most talented friends simply can’t afford to purchase half the products they help to market. It’s a vicious cause and effect that is crushing the creative minds and lives of the very ones who stand as the lifepillar of the industry. I blame some of that on our allowance of India fiercely invading our space and destroying our pricing. We can’t live on $3 an hour. They can. All clients see is a number with no care about quality but are first in line to usually complain about “wasting” their money.