Please indulge me a wee gloat. I’ve been telling you for years that the real people to watch in the disruption of media are the advertisers, or as Jay Rosen would put it, “The people formerly known as the advertisers.” The business of media, after all, isn’t content; it’s advertising, and this is what will eventually destroy media companies insisting that mass marketing has a viable future.
AdAge published an article featuring a speech yesterday by Pepsico’s President of global beverage group Brad Jakeman to the Association of National Advertising’s annual “Masters of Marketing” conference in Orlando, Fla. I wish I could’ve been present, for AdAge described the presentation as “fiery” and “truth telling.” Here’s a pissed-off guy who spends a fortune to sell his products, and we need to pay attention. Here are a view excerpts from the article:
Ad agency models are breaking. Pre-roll ads are useless. Measurement models are outdated. The ad industry lacks diversity. And the phrase digital marketing should be dumped…
“Can we stop using the term advertising, which is based on this model of polluting [content],” he said.
“My particular peeve is pre-roll. I hate it,” he added. “What is even worse is that I know the people who are making it know that I’m going to hate it. Why do I know that? Because they tell me how long I am going to have to endure it — 30 seconds, 20 seconds, 15 seconds. You only have to watch this crap for another 10 seconds and then you are going to get to the content that you really wanted to see. That is a model of polluting content that is not sustainable…”
“The agency model that I grew up with largely has not changed today,” he said, noting that he has been in the ad industry for 25 years. “Yet agency CEOs are sitting there watching retainers disappear … they are looking at clients being way more promiscuous with their agencies than they ever have…”
He said he has been to many marketing conferences and has seen some really creative things, which he said was “awesome.” But he “hasn’t seen our industry really push for incredibly disruptive things,” he added. “We are still talking about the 30-second TV spot. Seriously?”
If you’re truly interested in this stuff (or if your future depends on it), I strongly recommend studying every word he says, for the utter collapse of Madison Avenue is at hand. Companies like Pepsico are now media companies, thanks to technology, and their money is increasingly being spent in house, as Borrell has been tracking for years.
As the old country song says, “You never heard my words before, but can you hear me now?”