YOU ALWAYS GET WHAT YOU PAY FOR: These days the client/agency relationship pretty much follows this narrative – clients select an AOR based on who can deliver a full-spectrum marketing strategy the most efficiently. So the agency who pitches the cheapest most cost effective strategy wins the business, and then must deliver its services on paper-thin margins. As a result of this downward cost pressure agencies are forced to cut corners by using less experienced/overworked staff and dated technology. The problem with this sequence, of course, is that in life you get what you pay for. So as the price paid for marketing goes down eventually so does the quality. But as clients push for ever-leaner marketing solutions they seem to be blind to this inevitable law of gravity. That’s why it’s so refreshing to see the attached article from The Drum, about Oliver Maletz, Volkswagen’s head of media, and his contrarian approach towards marketing. Mr. Maletz espouses the value of a quality creative process that’s blended into the entire marketing strategy. Instead of sending to creative team off in a bubble to produce spots and then charge the media team with buying it as efficiently as possible, Volkswagen and it’s agency PHD are merging both elements into one collaborative process. By necessity this strategy has to be less about efficiency and more about quality output, which is definitely swimming against the cost savings stream the rest of the industry seems to be in right now.
THE ROBOTS ARE COMING . . . TO RETAIL: If you think eCommerce will be the biggest thing to change Retail over the next 10 years you might be wrong. Robots are poised to transform the in-store retail experience in an even more profound way. According to this CNN Money link, machines are expected to replace 6-7 million retail jobs over the next decade. Most of this attrition will come from register positions as the checkout process automates. Sales and stocking jobs are also at risk as consumers become less reliant on in-store assistance because they can “showroom” product specs on their smartphones. One of the driving forces behind this transformation is the cost of human labor. With minimum wages on the rise and the “Fight for $15” (an hour) efforts getting more traction in the larger cities, labor cost as a percentage of the total retail expense is growing. This reality, combined with technological advances which have made robots smarter and less expensive than ever, have the potential to significantly change the shopping experience and eliminate millions of jobs in the industry.
MANAGING COMPLEX CHANGE: Finally today, an interesting graphic to chomp on. We all know digital media is an industry rife with constant change. But have you ever thought of the best way to implement complex change? The following image was posted on LinkedIn with no explanation, but I think it speaks volumes. Successful change requires Vision, Skills, Incentives, Resources, and an Action Plan – no arguing that. But what’s really fascinating is to see what you get when any one of these ingredients is removed. So true!
Have a great Tuesday guys!
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