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Do marketers see creativity as added value or added cost?

The juxtaposition of two articles in this week’s Campaign magazine caught my attention. A piece about the Cannes Awards Festival says,

“The reason creativity matters, of course, is pretty obvious. In his book, The Case for Creativity, James Hurman tracks the share price of Cannes Lions’ Advertiser of the Year winners during the lead-up to their success. Without exception, they enjoyed their highest share price, biggest gains and most competitor-smashing results when they were producing their most creative work – Procter & Gamble, Nike, Volkswagen, Swatch, Honda… the list goes on and on.”

The author concludes that, “Clients value creativity more and more”.

On the other hand, a couple of pages later in the same issue an article entitled “Are agencies being screwed on fees?” reports on new research by the Marketing Agencies Association and argues that “Clients are squeezing agencies until the pips squeak.”

It continues, “Based on figures supplied by the finance directors of MAA member agencies, the research suggests clients have forced down agency fees by almost 20 per cent over the past decade, with creative departments bearing the brunt of the cuts….The MAA figures claim that hourly rates for creative talent over the same period have plunged by 26.5%. It begs the question of whether agency remuneration has reached crisis point.”

There’s a contradiction here: is it possible that clients value creativity more and more, but want to pay less and less for it?

It's hard to answer this question based on our experience at Wieden + Kennedy, which is not representative of the industry as a whole. It’s unlikely that any client who didn’t value creativity would consider working with an agency whose philosophy is ‘the work comes first’. But, even allowing for this, there’s no question that our fees are increasingly under pressure and that we are now pushed harder to justify the extra time and resource that goes into getting the work from good to great.

 Of course, clients have always negotiated hard on fees. On every pitch I’ve ever done where a procurement department was involved, at every agency I've ever worked at, I’ve been told, “Your agency is significantly more expensive than the others.” I’ve never heard of anyone at any agency being told, “Your proposal is significantly cheaper than the others and we wonder if you can help us understand why that is.”

So, what's my point here? I think the separation of marketing and procurement in many companies means that clients can be schizophrenic about the worth of creativity. Marketers may prize it, while their procurement department will aim to buy it at the best price they can. As agencies, our job will be to continue to prove to clients that an extra few percentage points on the money invested in creative fees may pay much greater dividends on the bottom line. That may mean enlisting marketing people to help persuade procurement creativity can add value.

And, going back to those Campaign artcles, maybe so as to help them develop a better appreciation of what creativity can do, agencies should be inviting some procurement people to Cannes…? Mind you, on second thoughts, maybe not. (Shudders imagining Megacorp Global Head of Purchasing being confronted by scenes of profligacy and debauchery that would appal Caligula.)

It’s half time, America

The Superbowl is THE advertising event of the year in the U.S.A..
America is watching. And at half time in the match yesterday, America got a pep talk on behalf of Chrysler. The talk was delivered by Clint Eastwood.

Awesome work from Wieden + Kennedy Portland.

Here are some of the inital responses:

"Chrysler is king of the Superbowl spots", said CNN.

“2011’s best Super Bowl commercial was Eminem for Chrysler. It's only halftime, of course, but the greatest of 2012 so far has been Clint Eastwood for Dodge, Jeep and Chrysler in another all-American “Imported from Detroit” spot.” – PopWatch, Entertainment Weekly
 
“For the second year in a row, the car maker has won over audiences during Super Bowl XLVI with an emotional commercial. This time it featured a gritty Mr. Eastwood trying to rally Americans.” – Wall Street Journal
 
"Powerful and one of the best Super Bowl ads ever.” – Allen Adamson, managing director of Landor New York, as quoted by Wall Street Journal
 
“The message of unity apparently moved Chevrolet, which sent out a tweet thanking its competitor minutes after the ad aired: "Thank you for your trust in America. From the heart of Detroit to your homes, we feel the same way." – As reported by MLive.com
 
“Once again, Chrysler's Super Bowl ad won the hearts and minds of football fans, this time with a little help from Clint Eastwood and, of course, Detroit.” – CNNMoney.com
 
“Clint Eastwood brings the first goosebumps of the night. Can't beat that voice. Can't beat the message about bringing America back in the "second half."”– MSNBC.com
 
“Chrysler's post-halftime "Motor City is fighting back." Political ad? Clint Eastwood ad? Polar bear ad? Who cares! A great director and actor pulls off the most interesting — and compelling — ad of the entire Super Bowl.” – Newsday
 
“For the second consecutive year, Chrysler made viewers fall silent with a gritty, gut-level ad celebrating Detroit — and built around an icon not known for shilling for products.” – The Wrap
 
“Jokes about Eastwood running for president quickly became ubiquitous on Twitter.” – The Wrap
 
“The commercial talks about recovery, hope for the future and recognition of thehardships we currently face — in a way that no political candidate or sitting President has yet done. The combination of America, nostalgia and hope willalmost bring tears to your eyes…In a word, it was perfect.” – Jalopnik

 

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