(Ok, I used the word paradigm.. but at least I didn’t say “paradigm shift”..)

Had a chance this week to hang out with and listen to George Parker of the infamous Adscam. Intriguing, entertaining and always crass, George has unique insight into the ad industry. Listening to his talk and getting the benefit of several hours of conversation have allowed me to focus my ideas on the ad industry and its evolution.. to what end? For how to position our firm when pitching..

The ad agencies of today, especially the 500lbs goliaths in the industry, will have to transform or they will fall.

A combination of technology and consumers over-dosed on ads will bring the nirvana of the last 60 years of advertising to a halt. The days of producing 5 million dollar TV spot are dead. This one-way channel of ‘telling’ a consumer is dead. Big dollar TV media buys are dead.

TV ads are losing their effectiveness, especially among the youth. Usage stats clearly point to reduced watching patterns, digital recorders are programmed to skip commercials, on-demand movies, downloading TV shows, etc. are replacing traditional broadcast advertising driven business models. The networks are moving to change their distribution and funding models, I’m sure they’ll figure it out – they produce the content, and most of that is still being consumed.

So now what about the agencies that produce the ADS!? Big shiny TV ads account for over 75% of revenues at most agencies. If that budget gets cut in half and half again, where does that leave them? Where does the money go?

They have to shift to new models. They need to hire new thinking, new types of marketers. They have to start thinking MARKETING channels, they have to be TECHNOLOGY SAVVY, and they have to think COMMUNICATION strategies rather than just rapid spot advertising.

So what are the alternatives to tv spots? Let’s start instead with the approaches…?

Interaction, interdependence, grass roots initiatives, multi-channel interactive media, tracking, conversations, feedback cycles, iterative product development, and so on.

Ok, I’ll expand on these.. on my next post.

Herein lies conjecture – mine; write me, as I’m always interested in hearing yours.

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