“You have a big budget that buys you the right to yell the loudest [but] where are you if you don’t have a large marketing budget?  Marketers need options that don’t break the bottom line.”

Today’s Ad Industry Innovator, Claudia Batten hails from Victors & Spoils. Victors & Spoils is a new agency Claudia founded with partners Evan Fry and John Winsor from Crispin Porter & Bogusky.  The big news, besides their bench being A-team advertising super heroes, is that V&S is based on the principles of crowdsourcing. ”We plan to prove that crowdsourcing can be expanded from what we know now into a scalable, manageable and strategic approach to advertising” Batten says.

The merits and flaws of crowdsourcing have been debated all over the web but I was more interested in hearing directly from the source:

What was the aha moment when you realized “our company needs to be doing things differently than we have been?”

Everyday, don’t you think?  I think it’s dangerous to ever think you have it 100% right.  Victors & Spoils launched about three months ago with the mantra that we would deliver a new ad agency model, so we really are setting out to do things differently.  Ultimately we are trying to solve some of the issues we believe to exist in the application of crowdsourcing to Big-Brand Marketing or Advertising Strategy.  I guess the aha moment here is the belief that the rise in digitally savvy consumers, combined with a need for reduction in operating costs from Big-Brands (with marketing budgets being immediate targets), would create room for a new model in the advertising agency world.

What books are on your nightstand or great blogs on your Google reader?

I am reading Hemingway’s The Sun Also Rises, and The Diamond Cutter by Geshe Michael Roach … but I also have a pile of fashion mags too if that helps me redeem myself.  The Diamond Cutter is a great take on how to be generous in your life and business, which is something I am passionate about.  The former – I just love Hemmingway.  Blogs, well there are a lot but I have to say I am more into Twitter at the moment; faster pace and more relevant.  I am trying to get better at posting myself, but I find that I’m too busy reading.

Give me an example of marketing you think is brilliant and why.

I am really into gilt.com right now – super clever.  There are many smart aspects to it, from the fact you don’t sign up to the site but ask for your application to be considered (so snobby, but it does makes it feel that little bit more exclusive, or maybe I am just an easy target) to the fact that they have timed sales, so you are motivated to log in at a certain time each day.  But most clever, to me, is the limited amount of items they have at one time.  You have this pressure to purchase.  It’s just smart – they have figured out their demographic beautifully.

We’ve all read that the pitch / RFP process is broken.  Many agencies aren’t even interested in competing in pitches.  Do you see an alternative to this process?

Well from what we see I think there are a few forces at work. First up, we are moving in a much faster pace and rapidly changing world, so RFPs can start to feel irrelevant as soon as they go out the agency door. In addition, I think we are all so busy these days working on actual work, there’s definitely a resistance to switching gears to go through the somewhat agonizing process of responding to an RFP. However, with procurement and financial departments getting more involved in marketing decisions, there is definitely still going to be a desire for compliance overall and some form of benchmarking for what a brand is spending with agencies. So I would offer that the process is just now really changing shape as both agencies and marketers realize that the current version isn’t working, and there might well be experimentation with several alternatives before either side is happy with the outcome.

What does the agency of the future look like?

Victors & Spoils.  I have to say that.  We do believe it though, if we do our job right.   I think what is key is to help brands connect with their consumers in a more cost-effective way.  I think the future is in having conversations with your customer – like two-way conversations, where you listen and stuff.  Novel, huh?

What do marketers need that agencies are not giving them?

What I hear a lot is that you either have a big budget that buys you the right to yell the loudest, or you need a large budget so your agency can come up with some super-smart “no one’s come up with it before” solution so you can break through all the yellers.  So where are you if you don’t have a large marketing budget?  Marketers need options that don’t break the bottom line.

Who do I admire and why?

I recently moved to Boulder, Colorado and when I look up at the immense mountains I live below and realize what the pioneers must have gone through to get here, its pretty humbling.  I really admire any version of that kind of pioneer and there are still people taking huge risks and embarking into the unknown. I find it hard not to respect that.  Maybe it’s coming from New Zealand, our founders sailed around the world to the promise of a new beginning.  I wish I was actually that gutsy or, lets face it, that hard-working!

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EDITOR’S NOTE: Claudia is only the second woman to appear on this series and that needs to change. I wanted to track down Anne Bologna but we all know that sad story. If anyone knows Mary Wells, Nancy Hill or Natasha Jakubowski, let me know. Click here to nominate your favorite female Ad Executive–the testosterone is thick in here and the diversity is down, so help me out readers.

Hitch is a consultancy that helps marketers hire the right ad agency.

I’ve been reading Seth Godin’s new book, Linchpin.

His blog post today came right from the book and was about how busy doesn’t mean productive. I have to say, I agree with him 100%.  So I’ve really tried to be disciplined about when I’m on these sites.

“I’d like to posit that for idea workers, misusing Twitter, Facebook and various forms of digital networking are the ultimate expression of procrastination. You can be busy, very busy, forever [but] busy does not equal important. Measured doesn’t mean mattered.”

But I had to laugh at the   s of the article and the invitation to share it on Facebook!
I guess we’re all hypocrites in one way or another.

Today’s Friday Philosophy comes from David Ogilvy.

I’ve been reading The King of Madison Avenue, the first ever biography of Ogilvy written by Kenneth Roman. Roman is the former Chairman and CEO of Ogilvy & Mather, Ogilvy was his boss.  It’s a very well done book and I continually pick up nuggets as I’m reading so I’ve kept a journal close by to write down the epiphanies that apply to my own business.

One of my favorite stories Roman tells in the book is about today’s quote.  The story goes that Ogilvy once left Russian matryoshka dolls “which directors found at their places at a board meeting. Opening the painted nesting dolls, each smaller than the one before, every director found the same message typed on a piece of paper inside the tiniest doll:

‘If we hire people who are smaller than we are, we will become a company of dwarfs. If we hire people who are larger than we are, we’ll become a company of giants.’”

-David Ogilvy

Hitch is a consultancy that helps marketers hire the right ad agency.

Can your agency make it snow in Austin? What about whip an entire city into a frenzy over a new Football Club?
Meet
Wexley School for Girls where the“Secrets to Great Advertising” are practiced not just preached.


Image shot for Inc Magazine by Gregg Segal.

Today we’re taking to Wexley’s Brian Marr.  He works there.  I have no idea what he actually does.

Wexley’s clients include Microsoft, the Seattle Sounders FC, WACOM, Copper Mountain and Bacon Salt. Founded in 2003 by Ian Cohen and Cal McAllister, Wexley’s goal: use non-traditional thinking to solve communication challenges in the ever-evolving new media landscape.  And a look at their work proves they’ve stuck to that vision.  Like the time they hung Sounders scarves all over Seattle to create buzz about the new team.

Or when they created National Snow Day and even made it snow in Austin to promote Copper Mountain.

Since the first day of school, Wexley has grown to 26 employees over 6+ years. They admit the first few years were tough. The guys were getting offers to do traditional work and took a few jobs that weren’t true to the agency vision just to stay afloat. As the non-traditional and media agnostic approach started catching on with clients and agencies, Wexley has been been fortunate to be at the forefront, while others talk the game and try to work out the rules.

What was the aha moment when you realized “our company needs to be doing things differently than we have been?”

We’ve never really had the aha moment as Wexley, but each of us had something in previous roles that made us think we wanted to try approaching things differently. Cal and Ian refer to the ideas they presented at their past agencies as Second Year ideas. They’d pitch them and everyone would agree it was a great solution to the customer’s business problem, but there was always a media buy that needed to be filled first so “maybe we can do those next year since this year’s media budget is already allocated.” There was good creative, just no creativity in the execution. They believed they were onto something so they decided to start Wexley and worked to define a new model for advertising.

What books are on your nightstand or great blogs on your Google reader?

You mean aside from marketinghitch.com?

The books I read at home are mostly just entertaining and borderline embarrassing. At work, we like people to focus on individual thought first and foremost. I once tried to stay on top of everything the industry reads but I’m a few thousand posts behind. I’m just reading about something called a “Tipping Point,” which I think is going to be HUGE!

Give me an example of marketing you think is brilliant and why.

I think the owners and marketing staff at the Seahawks/Sounders are brilliant. I’m biased because we work with them, but credit should be given where it’s due. The Sounders FC set out from the beginning to build something entertaining. From the choices they made with their product (including the players they hired, the choice of a scarf as the season ticket) to how they’ve rolled it out by turning the team over to the fans, everything has been methodical and highly effective. It’s a perfect example of the product becoming the marketing.

We’ve all read that the pitch / RFP process is broken.  Many agencies aren’t even interested in competing in pitches.  Do you see an alternative to this process?

RFPs are a necessity in subjective business. Someone is paying you to do a service for them that will be unique in each situation if we’re all doing our jobs right. They want to be assured that an agency understands their business and can handle the challenge.

As an agency, it’s easy to feel like you should be able to show some similar work to win the business. I was client-side for 10 years and can tell you from experience that your client really doesn’t care too much about what you did for <insert flashy brand name here>. You might get a few points that allow you to sit down with them and have a conversation, but that’s it. In our industry, you’re only as good as your last campaign. In your client’s eyes, you’re only as good as what you can do for them. They just want to know if you can hack it.

Regarding the broken process, I think agencies have brought a lot of it on themselves since the discussion inevitably boils down to cost/expense. We had a recent $10M opportunity and our first question internally was “can we afford to do this?” because we knew the competition would probably invest a ridiculous amount of money for a 1 in 12 shot of winning the business. As a client, I always saw things like staged out rooms and highly produced videos as overcompensation for the work not being there.

All of that said there are some bad situations out there. We have all seen poorly thought out RFPs, people who don’t actually have a budget asking you to pitch, the issue of idea ownership, clients requesting fully produced creative and more. Those aren’t problems with the RFP; they’re a problem with reasonable expectations at the client. We have our parameters for success set up and only pitch when it’s in our best interest.

What does the agency of the future look like?

I think things will continue to be interesting for the next few years. The networks will eventually hit stride again, but not before the overhead associated with the shift to digital forces them to rethink their media departments. They’ll need to re-organize themselves and package their services differently. In a digital, on-demand age, clients are going to be looking for things like rapid iteration and innovation across all areas. Smaller agencies can deliver on these more quickly than larger places, but will lack the breadth that the networks can provide. To overcome that, I think we’ll see independent agency co-ops on the rise.

We’ll also see far more digital focus, obviously. When you look at the numbers it’s surprising how little is sold today. These aren’t precise stats, but ~30% of eyeballs are online and it’s still only about 5% of the media mix for big brands. Why is that? My guess: it’s insanely more time consuming/expensive to do a multi-touch digital campaign than it is to do traditional. It’s only time before savvy clients are going to start demanding more digital in their mix than media departments are selling them.

What do marketers need that agencies are not giving them?

Marketers desperately need integration across their campaigns, which now involve more customer touch-points than ever. Internally, most marketers are still trying to determine the best way to align themselves organizationally to be most effective – they likely have a new social media team, an experiential team, grassroots team, digital media team and more. Between those groups and the preexisting ATL and BTL teams there is a going to be overlap. At the same time as clients staking out territory in the disciplines they care about, agencies are involved in a crazy land grab. It will settle with time, but for a while agencies will need to focus on playing nice to help make campaigns as integrated and effective as they have the potential to be.

Who do you admire and why?

I’m a huge fan or Pixar’s approach. They’re master story-tellers and have a unique process that enables consistent creativity and innovation. The result is a set of investors, employees and fans who can count on something great coming from them. I’d love to be a fly on the wall there for a day or two. I think we would learn a lot.

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Hitch is a consultancy that helps marketers hire the right ad agency.

HEARTS FOR HAITI: AN AMERICAN DINING RELIEF BENEFIT LAUNCHED BY BRAVO TV’S TOP CHEF CONTESTANT

  • Top Chef Ron Duprat Teams with three Fellow Contestants & Fine Chefs Across the USA Valentine’s Day to raise funds for Haiti
  • Up to ten percent of all funds raised will be donated equally to Hollywood Unites for Haiti and Kinship Circle Disaster Relief

Hollywood, FL – Haitian-born Ron Duprat, perhaps best known from Bravo’s hit TV series “Top Chef” has teamed up with three fellow contestants, Mattin Noblia, Hector Santiago and Michael V.  to welcome other fine chefs across the country in an all-chef Relief Benefit on  St. Valentine’s Day for his native land.  On February 14, all participating chefs and restaurants will donate up to 10 percent of their receipts to Hearts for Haiti: An American Dining Relief Benefit.   The donated funds will be divided between two charities: Hollywood United For Haiti and Kinship Circle Disaster Relief.  One hundred percent of the donated funds will go directly to on-the-ground relief efforts.

“Food always brings people together,” Duprat says.  “I hope that this St. Valentine’s Day, every community will have at least one restaurant where people can dine out with their loved ones and share their hearts with Haiti.”

Early participants include:

Andrew Black at Skirvin Hotel’s Park Avenue Grill, Oklahoma City;

Ron Duprat of  Latitudes Beach Café at the  Hollywood Beach Marriott in Hollywood, FL;

Sean Gavin of Graves Restaurant, Fort Myers, FL;

Adam Greenberg of Barcelona Wine Bar (several locations in Connecticut);

Mattin Nobilia of Iluna Basque Restaurant in San Francisco;

Niranjan Perera of Nilus Delights Bakery in Hollywood, FL;

Hector Santiago of Pura Vida – Latino Tapas Restaurant & Bar, Atlanta;

Florida Restaurant and Lodging in Miami

Top Chef Winner (Season 6) Michael V. of The Dining Room, Langham Huntington Hotel & Spa in Pasadena.

“Chefs always care,” Duprat adds.  “I hope chefs across the country will join us in this heartfelt effort for Haiti.  One hundred percent of their donations will go directly to Haitian relief efforts for both people and animals. It’s a win-win for everyone.”

For more information on becoming a participating chef or dining at a participating restaurant, call 415-461-9300 or visit  www.chefronduprat.com

Charitable Beneficiaries:

Hollywood Unites for Haiti is a Los Angeles-based non-profit founded in 2008 by Jimmy Jean Louis, a star of NBC TV’s hit series, “Heroes”. This charitable non-profit organization focuses on enriching the lives of Haitian children.  HUFH has established a relief fund to support the victims of the 2010 Haitian earthquakes.

Kinship Circle Disaster Relief is a St. Louis, MO-based non-profit that deploys volunteer teams certified animal aid workers to disaster-stricken areas with necessary animal food, equipment and veterinary supplies.

For additional media information only; to set up interviews, etc., please contact:  Valary Bremier

PO Box 412, Kentfield CA 94914, 415-686-7470 or valary@mindspring.com

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