Several months ago I wrote that agile | adaptive strategies are well suited for marketing departments as they face increasingly volatile socio-economic environments. Agile | adaptive strategies also offer advertising and communication agencies a future business model.
The traditional campaign communication model is rigid and ill-equipped to deal with the flexibility and uncertainity of today’s environment where consumers demand communication that is timely and relevant.
"The need for relevance will drive consumer demand and shape advertising supply. There will be billions of interaction points that will place enormous demands on brands to create and deliver just the right piece of content," Jacques Bughin and David Edelman of McKinsey & Company wrote in their submission to Wharton Future of Advertising Program.
The brand newsroom is emerging as a potential future model for advertising agencies. Like the traditional editorial newsroom the brand newsroom would react in real-time to events that interest the newsroom’s audience and produce a stream of content aligned with the evolving event.
“Brands will have to leave behind organizations and thinking built solely around the campaign model, and instead adopt the defining characteristics of the real-time, data-driven newsroom — a model that's prolific, agile and audience-centric,” Newsweek CEO Baba Shetty and Wharton Marketing Professor Jerry Wind wrote for the Harvard Business Review.
“Consumers have new expectations. Social media and digital news offer a continuously-updated reflection of the culture consumers live within.The overwhelming consensus from the Wharton Future of Advertising panel is that the current campaign-based model is ill-equipped to deal with this new reality,” Shetty and Wind added.
“We believe the newsroom metaphor offers a powerful way to rethink the way advertising content is being developed and delivered, the roles of the advertiser, agencies, the users and other content generators, and the entire organizational architecture of advertising and marketing.”
Adapting to a newsroom model won’t be easy for advertising agencies that have spent decades perfecting their campaign business model. However, implementing some sort of agile | adaptive strategy / business model will be essential.
Calle Sjoenell, Chief Creative Office at O&M, predicts that by 2020 at least half of the advertising production budget will be spent while the campaign is running to adapt it in real time instead of blowing it all in one go, before the campaign runs.
The traditional campaign communication model is rigid and ill-equipped to deal with the flexibility and uncertainity of today’s environment where consumers demand communication that is timely and relevant.
"The need for relevance will drive consumer demand and shape advertising supply. There will be billions of interaction points that will place enormous demands on brands to create and deliver just the right piece of content," Jacques Bughin and David Edelman of McKinsey & Company wrote in their submission to Wharton Future of Advertising Program.
The brand newsroom is emerging as a potential future model for advertising agencies. Like the traditional editorial newsroom the brand newsroom would react in real-time to events that interest the newsroom’s audience and produce a stream of content aligned with the evolving event.
“Brands will have to leave behind organizations and thinking built solely around the campaign model, and instead adopt the defining characteristics of the real-time, data-driven newsroom — a model that's prolific, agile and audience-centric,” Newsweek CEO Baba Shetty and Wharton Marketing Professor Jerry Wind wrote for the Harvard Business Review.
“Consumers have new expectations. Social media and digital news offer a continuously-updated reflection of the culture consumers live within.The overwhelming consensus from the Wharton Future of Advertising panel is that the current campaign-based model is ill-equipped to deal with this new reality,” Shetty and Wind added.
“We believe the newsroom metaphor offers a powerful way to rethink the way advertising content is being developed and delivered, the roles of the advertiser, agencies, the users and other content generators, and the entire organizational architecture of advertising and marketing.”
Adapting to a newsroom model won’t be easy for advertising agencies that have spent decades perfecting their campaign business model. However, implementing some sort of agile | adaptive strategy / business model will be essential.
Calle Sjoenell, Chief Creative Office at O&M, predicts that by 2020 at least half of the advertising production budget will be spent while the campaign is running to adapt it in real time instead of blowing it all in one go, before the campaign runs.
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