Nike Plus Shows How the Best Ideas Are Discipline- and Media-Agnostic
Written by Webmaster
Monday, 25 June 2007
The news from Cannes is that the drugs, particularly the Advil, work just fine, but the award silos don't. Members of at least three different Lions juries -- for promo, direct and media -- have bemoaned the difficulty of judging integrated work as it relates to a specific category. If you're judging a successful and innovative loyalty program with data capture, data analysis, point-of-sale promotion, direct mail, ...
The current cost-based compensation model for advertising agencies is flawed for a simple reason: It misaligns the economic incentives on each side. The client pays whether the agency adds value or not, and the agency is paid a fixed amount regardless of the value it creates. Clearly, this model is not in the best interests of the client or the agency. Even more perniciously, the existing compensation model focuses entirely on the wrong things:
U.S. ad spending -- at least the measured kind -- fell 0.3% in the January-to-March period, the first down quarter since the ad recovery began in 2002. But a drop in reported ad spending does not mean a drop in marketing spending. That's because what marketers need isn't just measured media; it's measurable results. Omnicom President-CEO John Wren said his firm's emphasis on marketing services has given it an edge over rivals recently.
For each of the past 11 years, Ad Age has published a special report on the women in advertising, marketing and media whose accomplishments and potential have made them standouts. The honorees are recognized for having played significant roles in defining the future of their fields. Today, we name the 2007 Women to Watch and provide links to all the stories of the 252 women who have appeared in this report since 1997.
The news from Cannes is that the drugs, particularly the Advil, work just fine, but the award silos don't. Members of at least three different Lions juries -- for promo, direct and media -- have bemoaned the difficulty of judging integrated work as it relates to a specific category. If you're judging a successful and innovative loyalty program with data capture, data analysis, point-of-sale promotion, direct mail, ...
The current cost-based compensation model for advertising agencies is flawed for a simple reason: It misaligns the economic incentives on each side. The client pays whether the agency adds value or not, and the agency is paid a fixed amount regardless of the value it creates. Clearly, this model is not in the best interests of the client or the agency. Even more perniciously, the existing compensation model focuses entirely on the wrong things:
U.S. ad spending -- at least the measured kind -- 
For each of the past 11 years, Ad Age has published a special report on the women in advertising, marketing and media whose accomplishments and potential have made them standouts. The honorees are recognized for having played significant roles in defining the future of their fields. Today, we name the 2007 Women to Watch and provide links to all the stories of the 252 women who have appeared in this report since 1997.
