2.1 - The Evolution of advertising Flashcards
Which agency group was the first to isolate its media arm, creating Zenith Media?
Saatchi
What sparked the wave of digital transformation and the emergence of specialized agencies?
The development of the World Wide Web
How did agencies respond to clients working with more agencies in terms of payment models?
By introducing fees, commissions, or a combination of both
What does the “Mad Men” era of advertising refer to?
The 1950s and 60s era of full-service agencies
Which entity has contributed to the recent changes in the agency landscape by acquiring creative agencies?
Large IT firms and consultancis
what has driven the agency landscape’s constant shifts and changes?
Changes in technology, the environment, and socio-economics
What was the primary medium for advertising during the early days of advertising agencies?
Newspapers
What were advertising agency business models initially like?
Selling media space
Advertising agencies of the 1950s-60s
Advertising agencies truly began to emerge in the post-war boom of the 1950s and 60s.
During this time, broadcast media - especially TV and radio - were growing fast. The UK’s culture and media consumption were united for the first time. There were only three TV channels and four (legal) radio stations. Regardless of your background, the odds were that you would watch the same TV programmes and listen to the same music.
Though the media contacts funded these full-service agencies, the media department only accounted for about…. % of the agency’s resources.
Though the media contacts funded these full-service agencies, the media department only accounted for about 10% of the agency’s resources. A greater focus was placed on creative, copywriting and account handling.
Why did media split from advertising agencies?
advertising agencies?
In the beginning, agencies made most of their money from commissions - usually a 15% discount for campaigns booked through an agency. This was given by media owners who preferred to deal with agencies: it meant fewer contacts and greater efficiencies for their sales team.
Though the media contacts funded these full-service agencies, the media department only accounted for about 10% of the agency’s resources. A greater focus was placed on creative, copywriting and account handling. As media investment grew, it wasn’t long before media men realised the commercial opportunity sat within their remit.
What happened in 1988?
Saatchi became the first creative agency group to isolate its media arm and, in doing so, created Zenith Media. Once media was split out, full-service agencies inevitably began to lose media accounts.
What was WPP’s first media agency called? When was it launched and how?
Mindshare, launched when JWT and Ogilvy & Mather merged media departments in 1997:
What was unique about Mindshare at the time?
It was a ‘broader company’ - a company that brought with it analytics, econometrics, content, communications planning, sponsorship, sports marketing, the whole spectrum of media planning services rather than just the buying. We called it ‘The House of Media’ (courtesy of Mandy Pooler).”
How would you describe the advertising agency landscape?
The agency landscape is organic; it constantly shifts and changes in line with technology, the environment and socio-economics.
What happened to the agency landscape when the world wide web got introduced?
Once the World wide web arrived we experience a rise in digital marketing possibilities and the landscape fractured even further.
The need for support across these new media and marketing channels sparked a wave of digital transformation that spawned a host of specialist agencies - digital performance, search, mobile, social, email, affiliates and influencer to name a few.
What has happened to the agency landscape in recent years?
Consultancies and IT firms acquire creative agencies for communication.
Agencies invest in consultancy, upskilling, and tech.
Brands increasingly in-house media and creative services.
What did Campgemini do recently and when?
Capgemini acquiring 23red in November 2022 to boost their creative capabilities.
What is one way agencies have responded to the changing landscape to remain competitive?
) By investing in consultancy and upskilling staff
What recent trend among brands and clients is mentioned in the text?
In-housing their media and creative solutions
Provide an example of a recent acquisition mentioned in the text related to management consultancies and agencies.
Capgemini acquiring 23red
How have agencies typically approached the need for digital transformation and competitiveness?
By hiring staff with digital skills and developing supportive technology
When and where did the first acknowledged advertising agency open its office?
In 1786, in London
Who is credited with opening the first advertising agency on American soil?
Volney B. Palmer
During the early days of advertising agencies, what was the primary medium for advertisements?
Newspapers
What new skill did agencies develop during the early days of advertising that contributed to their success?
Salesmanship in print
When did advertising agencies truly begin to emerge, especially with the growth of broadcast media like TV and radio?
In the 1950s and 60s
Who is considered the precursor to European advertising agencies?
William Taylor
What characterizes the ‘Mad Men’ era of advertising in the 1950s and 60s?
Full-service agencies that handled all aspects of advertising
In the ‘Mad Men’ era, what were the primary roles within full-service agencies?
Account hndling and creative teams
During the early days of advertising, where did agencies make most of their money?
From media commissions
hat percentage of agency resources did the media department typically account for in full-service agencies during that era?
c. 10%
How did splitting media from full-service agencies impact the margins of media departments?
It allowed them to double their margins
