In this video, P&G’s ‘chief brand officer’ talks about P&G’s efforts in ‘draining the swamp’ (as trump would have said) of digital fraud, unverified stats, dubious practices by publishers and agencies.
This is great, because this comes from one of the biggest advertisers in the world. And it is a positive step – one that is towards transparency and common sense that does not entertain exceptionalism every time some one conjures up a shiny new .com.
How would that affect agencies?
I want to be cheerful and hopeful that the greater scrutiny and transparency will force agencies to grow a spine and start asking for the rightful fee it deserves.
But I shouldn’t be too hopeful. Internecine competition takes up way too much time and efforts of an agency with awards, new biz pitches etc. Agencies typically are way too dependent on a few key clients for survival. Fear of losing them and prospect of winning new ones, keeps them forever running on the hamster wheel of survival.
So this is what is going to happen: simple erosion of margins. Agencies will start working at even smaller margins. Which means, even crappier talent will get hired at cheaper costs. Which means, bye bye to competent people.
How would it affect facebook/ snapchat/ etc.
Its amazing how such large companies like facebook can so shamelessly deceit people about their performances. This is a product of the ‘fake it till you make it‘ mentality of the morally vacuous people who see business as a game of bluff.
These digital-advertising-revenue-based companies will definitely be shaken up. Largely, because they are still in the phase where they have to prove their business models. Their valuations are still in need of correction. Their valuations are still based on the assumption of the great payoff that awaits for winner in a ‘winner takes all’ game. They need all the confidence of investors until the ‘winner takes all’ game is over/ or they learn to become profitable.
Hi5 for reasonable people who vote with their money. 🙂