If you’re into the hit AMC show Mad Men like I am, you probably have some idea of how the business of advertising used to look. Men in suits drinking whiskey. Women in skirts playing the role of secretary. Creative people in one section of the building. Copywriters in another. Clients being schmoozed in a local fancy restaurant.
Last Tuesday, I visited Wichita’s Sullivan Higdon and Sink (SHS) with my fellow Comm 660M classmates. When I found out we would be visiting the local ad agency, visions of Don Draper wining and dining me danced in my head. Unfortunately, he never showed; but I did get a free meal and had the privilege of listening to some other advertising professionals: Lathi Desilva, Greg Standifer and Tom Bertels.
After seeing some of the work they’ve done, learning the steps they take with each client and taking a tour of the building, I could see SHS has definitely moved beyond the old way of doing things. They’re taking advantage of the new digital tools available to them and have worked to stay ahead in a world where many traditional advertising companies are struggling to keep afloat. Their slogan, “We hate sheep” fits them perfectly, as they definitely do not follow the flock.
One example of this is how they have set up their offices. They’re as far from a Mad Men set up as they can get. Instead of traditional offices with solid walls and doors, employees are separated by doors on wheels. Yes, doors on wheels. Sounds strange, but it’s so smart. At any moment, one can rearrange the space so she can meet with a team member to solve a problem or toss out an idea. There is definitely a team culture there, a culture change that came when they moved to their new office four years ago. And this is just one aspect of SHS that sets them apart from the flock.
Today things are definitely changing for advertising companies. In some ways they are changing for the better, in some ways for the worse.
Change for the better
Today’s advertising companies have access to a plethora of tools to help in every stage of working with a client. They have access to free social media sites and analytics. They have access to relatively inexpensive equipment like digital recorders, video cameras and editing software, so creating a quality podcast or video in house is not as impossible as it once was. And getting their messages out to the public is free if they want to use YouTube, Facebook or Twitter.
SHS uses these tools to their advantage, but more impressively, they’ve also experimented with new ways to market products. During the visit, Standifer, a man who loves his meat and who works as a team leader on Cargill ads, explained that he and his team had the task of launching an unknown brand of natural beef to consumers in Super Target. Seems easy enough for an ad man, but there was a catch: he couldn’t use any of the traditional advertising strategies—no printed ads, no brochures. “They said ‘All you can use is your product,’” Standifer said.
So, like any good advertiser would do, he conducted some research and got creative. After looking at the target audience, he found that many of the people shopping for this type of product own smart phones and do their research on brands before buying. They also take their time and see grocery shopping as more of a leisurely activity than a chore. Taking all these things into account, Standifer and his team decided that the product placed in the meat case would include a sticker containing a two-dimensional barcode. If a customer used his smart phone to scan the code, he would be connected to a 20 second YouTube video explaining more about the brand.
The best part of this was that the barcode was a free tool from Microsoft. Standifer mentioned that Golf Digest is a magazine leading the way with this barcode technology, but said “we were the first ones to take this in to the meat case.” The barcode also came with analytics that helped SHS track the numbers and locations of people who viewed the video.
SHS has also recently worked with Coleman to promote a new grill designed by a Paul Teutul Jr. of American Chopper. Paul Jr. was going on a summer tour of 12-14 cities in an effort to promote the product. Apparently, Paul Jr. has an online following, so SHS was presented with the challenge of getting his followers to show up when he stopped in their cities. They used Twitter as a registration tool—if someone re-tweeted their message, they were registered to win a free grill signed by Paul Jr. They also used meetup.com where people can set up events like this one. “Obviously, from a cost perspective, very little production value. They had their tour bus, but from a collateral piece, we didn’t do anything [but] fliers they hung up at Home Depot and Dick’s Sporting Goods,” Standifer said.
With all these new tools, there are definitely more ways to reach consumers. Danielle Sacks (The Future of Advertising, 2010) says “Thanks to the Internet and digital technology, agencies are finding that the realization of their clients’ ultimate fantasy—the ability to customize a specific message to a specific person at a specific moment—is within their grasp.” It’s hard to believe just how targeted advertising can be, but it’s because of these digital tools that this has become a reality for advertisers like SHS.
Change for the Worse
All these tools offer innovative ways to reach consumers, but ad agencies are also finding their presence a hindrance. Sacks explains that it’s no longer easy to advertise. “The death of mass marketing means the end of lazy marketing. At agencies, the new norm is doing exponentially complex work.” If clients want YouTube videos, print ads, web sites, social media presence and all the newest forms of connecting with consumers, traditional ad agencies may not be able to provide every service. In other words, advertising agencies are trying to do more work with less money and fewer people—a pretty difficult task.
In order to satisfy their clients, some agencies are reducing their own staff and partnering with other companies who specialize in these areas. After all, if these large agencies want to remain viable, they have to be willing to admit that they can’t be all things to all people and that others can do things better.
A big problem in the advertising world is that with all of this new technology and internet advertising, agencies are struggling with monetization. Gone are the days of the “fat 15% commissions they used to score off of a client’s media spend, a spend ballooned mostly by television commercials. Today, agencies really have no clue as to how they should get paid,” says Sacks. Fortunately, measurement tools like analytics and metrics are becoming more detailed and may eventually help ad agencies figure out a good system of payment.
As the industry changes, so do the expectations for entry-level professionals. College grads can certainly expect a competitive job market. “Students will be expected to have more applicable, real-world experience,” says a contributor to 11 Public Relations Trends for 2011. This means that students will be required to take on several internships to gain experience in a variety of areas if they want the experience it takes to get a foot in the door of an ad agency—which means even more student loans to pay back as many internships are unpaid. What else can entry-level professionals expect? SHS looks for the following traits in new hires:
- Writing skills
- Verbal skills
- Presentation skills
- Story-telling capabilities
- Uniqueness and personality
- Knowledge and use of new or unique tools
- Knowledge of the market
- Internships and volunteer work for non-profit companies
- Involvement in community organizations
- Clean social media
- A professional resume