Adweek
Everyone Is Talking About The Publicis-Omnicom Merger [THE BRIEF]
Good morning, AdLand. Here’s what you need to know today:
Of course the biggest news from this weekend is that formerly number two and three holding companies, Publicis and Omnicom, merged. Revenues for Publicis Omnicom Groupe will now far exceed WPP at $23 billion.
GroupM Global President Dominic Proctor condescends the merger. Although he said that it is “an interesting move,” Proctor continued, “neither Omnicom nor Publicis was able to bring their investment teams together effectively as individual companies, so it be fun to see if they can now do it together.” GroupM is part of WPP.
Havas CEO David Jones said that the merger will be bad for clients and employees.
FT takes a look at Omnicom’s John Wren, “the quiet man of ad land.”
And Digiday’s Brian Morrissey takes a peek at the winners and losers of the merger.
Speaking of Digiday, the site had a makeover.
Ketchum hired Andrew Ager, formerly at Weber Shandwick, as a creative director in its London office.
Ad agency Crush attached a GoPro camera to an adorable dog. Adweek has the pictures.
Stephen Colbert has some thoughts on branding.
Ford, P&G And Others In Full-Scale Revolt Against Ad Price ‘Arbitrage’
Half a dozen major advertisers — Procter & Gamble, Ford, Citibank, Unilever, Kimberly-Clark, and AT&T — have pulled their ad dollars from online ad agency trading desks because those agencies can’t explain how their money is actually being spent, according to a must-read, in-depth report from Adweek’s Mike Shields.
The agency trading desk issue is complicated and obscure, but it involves millions of dollars in web advertising placed by blue-chip brands.
We recently reported on the growing unrest on Madison Avenue over the way some web ad agencies decline to tell their clients the original price of the web ad inventory they’re buying. Agencies buy the media upfront with their own money. They then slice and dice it, according to data they’ve gathered themselves, making it more targetable and thus more valuable. the media is then sold at a premium to clients.
Clients don’t know what the original price was — and thus, nor do they know what the agency’s markup is.
Critics call this practice “arbitrage” or “frontrunning.”
In their defense, agencies say they ad value to the inventory by generating their own analstics and data. They take the risk of not selling the data when they pay for it with their own money. Clients aren’t forced to buy it — they can take it or leave it. And the practice should be judged on a performance basis, as most clients use trading desks as but one part of a larger strategy. The fact that the original pricing is undisclosed is written into contracts upfront, ! too. GroupM CEO Rob Norman told us many of his clients are on a “non-disclosed basis” when it comes to pricing.
But the problem is that where there is a lack of transparency, there’s a lack of trust. Adweek writes (emphasis added):
One tech vendor … described a recent conference call during which a client grew exasperated with its agency, which was unable to provide even basic details about where its ads were being run — since they were being purchased via an agency trading desk.
For example, according to sources, Kimberly-Clark has insisted that its digital agency of record, Mindshare, handle all of its audience buying, rather than Xaxis. AT&T has made the same request of its GroupM shop MEC. Bob Arnold, Kellogg’s global digital strategy director,
Facebook’s New Ad Exchange Has ‘Quadrupled’ The Market; Performs ‘Better Than Google’ (FB)
It’s been hard to gauge how big Facebook’s new real-time bidding platform for advertisers, Facebook Exchange, has become since it was launched in June, but global sales chief Carolyn Everson let slip just how big it could be in a recent conversation with Adweek and Group M digital chief Rob Norman.
First Norman said he believed FBX had “quadrupled” the size of the available market for advertisers who wanted to place ads based on real-time bidding in exchanges:
We love it. We absolutely love it. Massive, massive, massive increase in the amount of exchange traded media. We think it’s probably quadrupled the market in terms of availability of total impressions.
Then Everson said FBX was performing better than Google’s ad exchange:
So we are very excited about Facebook Exchange. We’re excited about the results that we’ve seen. Our performance so far in the Exchange is doing better than the Google Exchange, and Triggit and others have all spoken up on our behalf.
The caveat here, of course, is that quadrupling the supply of available ad inventory isn’t the same as quadrupling the demand for it. And the performance evidence from the demand-side platform companies who have been placing ads inside FBX, like Triggit, is so far only anecdotal. Those buyers say clients can get 16X ROI inside FBX. (Notably, FBX was not mentioned in Facebook’s recent 10-Q.)
Nonetheless, it’s yet another breadcrumb on the trail toward Facebook’s claim that it is on the way to gathering a new $2 billion ad marketplace.
Disclosure: The author owns Facebook stock.
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Romney’s 47% Video Has Been Viewed 3 Times As Often As His Convention Speech
Source: http://www.businessinsider.com/romneys-47-viewed-more-than-convention-speech-2012-9
Here’s an amazing chart from Pew Research, which is being tweeted around by Charley Warzel of AdWeek, Andrew Kaczynski of Buzzfeed, and others.
It shows the number of times different convention-related videos have been viewed on YouTube.
The highlights:
- Barack Obama’s convention speech has been viewed 5 times as many times as Mitt Romney’s convention speech.
- Mitt Romney’s “47%” video has been viewed 2 million times more than his convention speech.
- Clint Eastwood’s convention speech has been viewed 2 million times more than Mitt Romney’s convention speech
- Michelle Obama’s convention speech has been viewed 3-times as many times as Romney’s convention speech–and 6-times as often as Ann Romney’s
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Ads will possess your phone using subliminal sound waves
Source: http://www.engadget.com/2011/12/09/ads-will-possess-your-phone-using-subliminal-sound-waves/
Er, we don’t want to sensationalize this or anything, but your phone could soon be at the mercy of inaudible sound pulses that trigger location-specific ads, sales promotions and other potentially demonic notifications. Unlike normal advertising within apps, and also different to sound-responsive apps like Shazam and Shopkick, a new platform called Sonic Notify is meant to work discretely in the background, without the need for any user activation. Its creators, NY-based digital agency Densebrain, plan to attach small high-frequency sound-emitting beacons to store shelves, which will “set people’s phones off” when they stand in front of a particular product. It’s not clear how the platform might affect your battery life, or why you wouldn’t just disable it at the first inopportune alert, but drug stores, TV networks and big players like Proctor & Gamble are nevertheless said to be gripped by the concept.
Ads will possess your phone using subliminal sound waves originally appeared on Engadget on Fri, 09 Dec 2011 08:41:00 EDT. Please see our terms for use of feeds.
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Advertising Can Prevent Purchases
More than one-third of Americans will not purchase a brand because of distasteful advertising,according to a new Adweek Media/Harris Poll.
Advertising Can Prevent Purchases
Thirty-five percent of respondents said they have chosen not to purchase a certain brand because they found the advertisements distasteful. Another 22% said they have not done so but have thought about doing it, and 43% said they have never done so.
Gender, Age Make Varying Differences
The gender and age of a consumer can have a varying impact on whether they will choose not to buy a brand due to distaste for some part of its promotional strategy. Slightly more women (36%) have chosen not to purchase a brand due to its advertising than men (35%). However, more men have chosen not to purchase due to its spokesperson (32%) than women (25%). More men have also chosen not to purchase a product due to a program or event sponsored by it (29%) than women (22%).
College Grads, Wealthy More Easily Offended
College graduates and respondents earning more than $75,000 a year had the highest levels of choosing not to purchase a brand due to some part of its promotional strategy. Forty-three percent of college graduates have chosen not to purchase a brand due to distasteful advertising, compared to 37% of respondents with some college and 29% with a high school degree or less.
In addition, 33% of college graduates have chosen not to purchase a brand because of the spokesperson, compared to 31% of respondents with some college and 23% of respondents with a high school degree or less. And 33% of college graduates have chosen not to purchase a brand because of a sponsorship issue, compared to 27% of respondents with some college and 24% of respondents with a high school degree or less.
The generalization that TV ads are more “helpful” than internet ads is simply false and irresponsible
In the following study published by Harris Interactive and Adweek Media, they show a chart which seemingly shows that TV ads are “most helpful” in making a purchase decision. If you were give the following list of choices — TV ads, newspaper ads, search engine ads, radio ads, banner ads, and none — and asked to select which was most helpful to your purchase decision; which would you choose? And would you choose that because it was more familiar to you (e.g. TV), seen more frequently, etc. Or is it that banner ads are generally known to be ignored (eye tracking studies show that most users know not to look at the top and right sides of a web page, knowing that banner ads typcially go there).
Source: http://www.marketingcharts.com/television/tv-ads-most-helpful-web-banners-most-ignored-9645/
More than one-third of Americans (37%) say that TV ads are most helpful to them in making a purchase decision, while nearly half say they ignore internet banner ads, according to (pdf) a poll from AdWeekMedia and Harris Interactive.
In terms of the helpfulness of ads in other media, newspapers rank second behind TV, with 17% reporting that newspaper ads are most helpful, while 14% say the same about internet search-engine ads:
At the other end of the spectrum, Radio ads (3%) and internet banner ads (1%) are not considered helpful by many people. The poll found also that more than one fourth (28%) of Americans say that none of these types of advertisements are helpful to them in the purchase-decision-making process.
Not surprisingly, the types of ads Americans find helpful vary by age and, slightly, by region:
- 50% of people ages 18-34 find TV ads most helpful.
- 31% of those ages 55+ say newspaper ads are most helpful.
- 40% of Southerners find TV ads most helpful, while only one-third (33%) of Midwesterners feel the same.
Banner Ads Most Ignored
Almost half of Americans (46%) say they ignore internet banner ads, according to the study. Much further down the list of ignored items are internet search engine ads (17% of people ignore), television ads (13%), radio ads (9%), and newspaper ads (6%):
One in ten Americans (9%) say they do not ignore any of these types of ads.
Age and regional differences:
- 50% of those ages 35-44 and 51% of Midwesterners say they ignore Internet banner ads compared with 43% of 18-34 year olds as well as Easterners and Southerners.
- 20% of Americans 18-34 years old (20%) say they ignore Internet search engine ads while 20% of those ages 55+ ignore TV ads.
Harris Interactive suggestes that these findings are important because, despite online video and the ability to use a DVR to shift live programming, TV ads remain most helpful to consumers. Conversely, while an internet strategy is essential for a comprehensive ad campaign, banner ads are only considered helpful by a few and are ignored the most, the polling fiirm said.
About the survey: The AdweekMedia/The Harris Poll was conducted online in the US from June 4-8, 2009 among 2,521 adults (ages 18+). Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was also used to adjust for respondents’ propensity to be online.
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