Interesting article in MediaPost today titled, “The New 5% Solution: Tech Projects Vs. Media Campaigns” that talks about how advertisers and agencies should be investing in innovation in the form of new media ideas.
“Innovation has nothing to do with how many R&D dollars you have. When Apple came up with the Mac, IBM was spending at least 100 times more on R&D. It’s not about money. It’s about the people you have, how you’re led, and how much you get it.” – Steve Jobs, Fortune, Nov. 9, 1998
The client side carries it’s own set of challenges, but on the agency side, it looks like most are just struggling to keep up and stay alive ["what the hell is all this 'digital' fuss about?"]. There’s no time for innovation or invention because of an unceasing focus to generate revenue above all else. That’s a dangerous mindset – and stupid.
In the past week, I’ve had several conversations with execs working for large brands who tell me their agency sucks. Why? No new ideas, no innovation – same old, same old. Some believe that the investment and change needed to spur innovation can only come through new business revenue; Get new business coming in, then beg for some money from management to make the real magic happen.
Even Fred Flintstone would see that as prehistoric thinking. How can this even begin to make sense in an industry where innovation is the word of the day and creativity and doing cool stuff have been the driving force of agency [and client] success for years?
“…the practice of selling promises has taken a back seat to a new core philosophy based on the idea of delivering experiences.” – Conor Brady, Chief Creative Officer at Organic [Omnicom], AdvertisingAge, May 2010
According to dozens of people I’ve polled on the topic, I’m not alone in my POV. The peeps I’ve talked with on both sides of the industry fence say this represents a serious lapse in forward thinking. Reactionary, not proactive business thinking. I agree and I think the concept put forth in the MediaPost article is right on.
…advertisers and agencies should set aside a minimum of 5% of their budget to invest in incubating new media ideas, especially ones with emerging technology developers.
Clients need to demand more of their agencies and agencies need to, well, get right with themselves. The creative space is all about innovation and experimentation. And a commitment to innovation [and creating competitive advantage] takes some balls, smart thinking, smart people [in the right roles], time, and money.
What’s your experience/opinion on this? I’d love to hear from you.
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Amen, brother!