The precariat agencies

I am interested in the changing dynamics of agency business. So I tend to read whatever I can about new efforts being made to reinvent businesses. Some of the efforts are truly astounding – the AI agency Born, for example – sounds very interesting. Then there is Maana, a big data company that helps make sense of internal data.  I don’t completely understand them yet, but I know what need they are fulfilling and how they are relevant. They are trying fairly interesting new things.

And then I come across news from advertising agencies – and it feels as if all that ad agencies do is bullshit, not actually innovate. Just came across an article on adage that I had to read twice to make sense of. Here it is. So the article packages the desperate efforts of some small agencies to stay relevant as ‘new business models’. Sure, what they are doing is indeed a new ‘business model’ – like depending on freelancers instead of investing in teams and infrastructure or to charge only by hours instead of guaranteed scope under contract. But is any of it in their own long term interest? If you are not engaging in contractual  partnerships, you are simply creating a cheaper alternative to traditional agencies while absorbing the uncertainty for yourself.

A ‘business model’ that essentially creates ‘less value’ is similar to a ‘business model’ of outsourcing manufacturing jobs to ever poorer countries. The client gets a cheap deal and the labour at home suffers. That is not innovation. It is desperation.

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In the article, BETC LA, (a dance company? an agency?) boasts about spending ‘only’ a quarter of a million dollars on a launch campaign. I tried to dig a bit deeper trying to understand why would an agency need to spend that kind of colossal sum on a ‘launch’? The agency website still say that it ‘will’ launch in oct 2017. Doesn’t compute.

It feels like somebody had to do wild mental gymnastics to portray these various precarious agencies as pursuing bold new ‘business models’. If you get into cost wars, the cheapness spiral will only drive down the industry.

In a way it is poetic justice. The industry that played a role (even if indirect) in destroying unions and collectivist utopia of 20th century finds itself on the other side of the table – capitalism draining it out and rendering it into a commodity.

There is time still to do the right thing, to grow by increasing the ‘value‘ of what we do, by being more conscientious of what we do. Here’s a few ideas for ad men/ women to grow in the future –

1. Recognise your  precariousness and Unionise to gain strength.

2. Recognise your human potential and look for opportunities ‘beyond ads’

3. Learn from beyond the narrow world of advertising and create new value, don’t sell old wine in new cheaper bottle.

May you find your way out of precariousness.

 

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Stop feeding the parasites

I received a curious mail today from Campaign magazine. It was soliciting content. so far so good. I skimmed through it and was delighted. They wanted content and towards the end they had mentioned a huge sum of money, almost half a year’s salary for me. I assumed it must be honorarium for the ones whose content is selected. I was thinking, man, these guys are amazing – can they really afford to give away that kind of money to contributors? Didn’t make sense. Perhaps it is a way of cultivating the best talent?

so I read the whole thing – turns out, they are not giving honorarium, they are ASKING for the sum. In exchange, the contributor gets their photo published in the magazine.

This is some weird shit. All this while I thought their business is in getting free content and distributing it at profit.  (which I find problematic anyways. Why should any labor be free?) But it turns out, their business is about validating the poor insecure idiots in the narcissist industry of advertising, who seek validation for their expertise.

I understand, for many small agencies perhaps, this is a way of getting noticed by the right people. For a down and out senior person, this is a way of getting back in the game. For a low esteem somebody, it is way of feeling secure about their expertise. and I am sure it is of positive utility to somebody somewhere, the use-case for which I can’t think of now. Nevertheless, what a scam!

The mice needs security and the vulture is selling helmets.

Advertising industry is plagued with this insecure-narcissistic game that drains its people of their money, their time and their esteem. The countless awards, the countless publications, the countless events – what good comes of all that masturbation?

Awards

Cannes, One show, Effies – what a fucking waste of money and efforts. It does curate some amazing work, but it is not available freely for all industry folks to learn from, now is it? It is available at a price and not readily usable. The learning, the cases, they are not turned into usable insights, usable learning tools for the young in the industry to learn from, freely. If it is behind paywalls,  it is useless. It is unethical to first charge for entries and then again charge for accessing the end product. Its the most dick move ever. In the age of AI, why can’t knowledge gathering digital dust behind paywalls, be turned into an Open advisory for a world where businesses grow more efficiently and people don’t have to weather terrible ads?
I can see the parallel here with the pharma industry – companies that have recipes of wonder drugs that can cure TB, malaria – but won’t give it out to needy people. Well, the comparison is wrong – atleast pharma companies own their own IP, all that award shows do is massage a few egos. Its the most expensive ‘curatorial’ service ever.

Awards might help build agency credentials. But why does a company need new credentials every year? I mean, I don’t see volkswagen or Mahindra spending as large a proportion of their revenue towards awards, as agencies do. No other industry spends as much money on validation as percentage of its revenue as we do.

Look at Publicis. With a year’s worth of spends on awards, they are planning to build a AI assistant for their employees! (Shitty idea, but one must commend on trying to be relevant) I mean they could start new businesses every year with that kind of money, put it to far better uses than advertising awards.

With Unilever, P&G cutting down their ad spends, agencies will have to further tighten their belts. They better start with the awards, instead of employee raises.

Publications

Which other industry has so many ‘thought leaders’, so many publications and yet doesn’t move an inch ahead in the game of innovating it’s own value proposition?
What do adage, campaign, afaqs, thedrum etc add to the universe’s knowledge? Not much. These publications regurgitate same points of views over and over again. They keep discussing similar trends over and over again without critical analysis (programmatic is the future, maybe it is not. Native is the future, maybe not. Context is king. maybe not. where is the data to support the hypothesis anyways?) Never have I read an actual original point of view about media/ business/ culture/ consumer in these rags. They are mere propaganda vehicles for ad agencies and its career climbers.
Its quite possible that half the ‘views’ and engagement of ‘famous’ campaigns are generated by people in marketing only – readers of these publications. I suspect, the feedback effect is detrimentally strong in advertising. Shiny, smart ideas get propped up even if it might not be effective.

Lastly, I feel the publications normalise the alienating bubble of advertising. By repeating trends that are not actually trending, by idolising campaigns that are not effective, by giving trophies to agency folks…  they are holding back the industry.

Agencies often have fairly smart people. People with ideas. People who can start their own businesses, create things of great value. Instead they get too comfortable by publication powered validations and publication powered point of views. They hold them back in the industry.

Events

Well, I think, advertising people would gain far more if they went to art galleries, tech expos, civic issue seminars, political rallies, academic seminars even etc. There’s marginal utility in going to advertising industry events where you will bump into people exactly like you. (unless you want to network).

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Essentially, stop becoming fodder for these parasitic industries that are growing bigger and bigger as the host industry diminishes. Get a grip on yourself, advertising industry.