By Abe Kasbo
So the CMO of Proctor and Gamble did it, so did his peer at American Express. And in February of 2006, John Stratton, VP & CMO of Verizon who controls a budget of more than $2 Billion bluntly warned “major money is going to be in motion in the next decade and yet no one understands exactly where it will land, or even if will land, or just disappear altogether.”
Mr. Stratton is referring to Madison Avenue’s love affair with existing media, “antiquated media plans,” and its apparent inability to capitalize on a variety realities including, media fragmentation, the Internet, brand loyalty shifts, and the changing American demographic scene.
So what’s happening? It appears that advertisers are lauding the Internet, but still are unable to make sense out of it. Kind of puzzling though considering Google’s meteoric rise – if that indeed can be used as a measure. If you’re American Express, Coca Cola, your fully invested in your marketing plans, but where do you get the biggest bang for the buck? Where and how do allocate your budget in an increasing wired world? And what do you make of the mobile web?
Media will change rapidly and the next medium is right around the corner. Regardless, this continues to be an issue of asset allocation, messaging, and consumer engagement. It’s those advertisers that can consistently bring those elements together that will be fully invested in the market – smartly.
So with that in mind, advertising firms need to step up and partner with their clients utilizing a different financial model to continue to expand their business and deliver more value to their clients.