Why change when the figures don’t stack up?!!
Ok so we all know that the ‘old’ way of doing advertising and of communicating with people is simply not working anymore! Everyone we listen to at conferences says it, we read about it in the trade press, and in the latest marketing books (us who still bother that is!).
This is not exactly a news flash, and it also seems most people working in advertising, media, branding, journalism, marketing, you name it, agrees with this reality.
So if we all agree, why aren’t we seeing bigger budget shifts? Why aren’t we seeing major agency restructuring efforts (and I’m not talking cosmetic changes)?
The answer is simple, because the figures don’t stack up! This comes to no surprise to many of you, but I never saw it as clearly as I did this weekend – black on white!
On Saturday I had the pleasure of going to the André Kertész: exhibition On Reading, at The Photographers’ Gallery where I also had coffee with Tim Forrest, Head of Communications Planning, OMD UK (and a very very smart man I must add).
Like Picasso Tim started drawing on a napkin (well a pad but still) the reality facing the Newspaper industry today, not in terms of readership figures, but in terms of revenue. By the way, don’t stop reading just because you are not in the newspaper business, what they are suffering is systematic to the entire communications industry, and the core drivers of change are the same!

Note: The figures Time used comes from ‘Will the pay model really work for newspapers online…?’, Raymond Snoddy, Media Commentator:, 7 July 2009.
What the drawing shows, and the article explains, is that ‘Last year a UK national newspaper reader was worth a total of £155, £65 of which was generated from advertising with the rest coming from £90 worth of newspaper purchases. At the same time, revenue per online unique visitor totalled just £5 – all of it from advertising’ (apparently Facebook, who many sees as the winner in social media, only makes $2 per user per year). Also, purchasers of paper copies of national newspapers spend 12 hours a month reading them. The equivalent online time is just 10 minutes, according to ComScore’s official readership survey’.
And there it is, in black and white, the figures just don’t stack up, and as long as this is the case there is no justifiable argument for change….
Unless of course you take time into consideration…or more precisely the risk that over time these figures may flip…that 90% of revenue comes from on-line and 10% from print.
I don’t know about you but to me the future looks like a pretty small pie if we don’t do something about it….
So what is that something? Our business is no different to any other business (really I promise)…when a product is obsolete it simply disappears from the shelves and gets replaced…What has ‘saved’ us from this happening to date is the fact that there is a little too much legacy for change to happen over night. But change will happen, of that I’m certain.
So who is going to be involved in facilitating this change? I’m pretty sure they will fall into one of the following categories (which of the following five are you?):
- You never liked paper that much
- You get off on change and you are therefore happy to be one of the drivers of change (how I wish this was not my category as it mostly gets me into trouble J)
- You don’t like change but accept that the forces at play are stronger than you (in other words you can’t afford retiring in five years time, hence you can’t avoid changing if you want to have a job in the future)
- You are ‘unlucky’ enough to be sitting on the one client smart and large enough to demand change, hence forcing you to act!
- You will do nothing, until a black swan suddenly flies into your life (actually your industry) forcing you to change (some of you will find a way, and others….)… some argue this swan is already very much here, even if a little grey rather than black..
Either way I put my money on the people who are spending most of their waking hours developing a business model that will actually stack up, make sense… not to the agency world but to the big advertising spenders….oh sorry let me take that back…to the people the big advertising spenders want to engage with!
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