This past week, this post at Mashable gave me my current favorite metaphor for the way the web has affected many businesses. Here's the quote:
if you’re selling bread and suddenly bread starts raining from the sky,
are you going to be able to keep selling bread? Hell no, because it
will be free for all and your business model needs to change. You think
you can tell people that it’s illegal to pick the free bread from the
street? You better start making better bread, buddy.
The piece that it comes from is a post by Stan Schroeder about Guy Bono, a French member of the European Parliament, and his bill that urges EU countries to avoid adopting measures that would deny internet access to convicted illegal downloaders (people who are sharing copyrighted files on P2P networks, etc.) I think it's an interesting bill, but won't make a comment on the EU thing, mainly because I think Schroeder's bread example is so good, and I want to focus on that. He's writing it, of course, in reference to old media companies, who want to solve DRM and protect copyrights through legislation. But I think it has an amazing amount of application in the world of advertising, too.
The point is, the market has changed -- and changed dramatically. It's not just that the old ways of creating things aren't working as well as they used to -- it's also the case that the pricing structure for the old ways of doing things is extremely difficult to apply to new media. This, of course, has been discussed a lot, and frequently leads clients (and sometimes overzealous agencies) to believe that when you create stuff for the web, it necessarily must be cheap. That's not the case. Many times, stuff for the web is expensive. But that still doesn't mean you can charge old-school TV prices for YouTube videos, or that you should simply run old-school TV on YouTube.
Here's the thing. The changes in the market are interconnected -- and include both price and content. Content wins -- but you don't get to decide what's good. The users do. Actually, that's always been the case, it's just that now, the results are more immediate and visible. What that means is, your $350,000 spot is now competing against some kid's video of his brother slamming into the side of a garage on a skateboard. And many times (though certainly not all,) the skateboard wins. Which means, just because you're an agency, even if you're an agency with a Lion on the shelf, it doesn't automatically buy you a ticket to popularity, and a justification for your $350K. What might buy you a justification for higher production prices (and accompanying higher production value) is a better idea. Because it's the idea, as expressed by the execution, that wins with users.
Now, here's the funny part: Agencies for EONS have been griping that they're not paid enough for their ideas. I can't even begin to count how many times I've heard the phrase, "We're in the idea business." Except now, when ideas from agencies compete head-to-head with ideas from regular people, never mind about quality, originality, or any of that -- agencies are having a very tough time matching the price. In the old days, before view counts and click-throughs, it was easy to make the case for superiority by virtue of creative source. That's just not true anymore. Now, trying to justify quality, simply because it comes from an agency, is akin to attempting to pass that legislation that says people can't pick up the free bread that dropped from the sky.
The market decides what bread it wants, and it doesn't always decide on the side of agency-produced stuff. Nor does it always decide on the side of the most expensive stuff. It does, however always decide on the side of the most popular stuff. And as far as I know, that's pretty much always been one of the main goals -- make the message popular. It's a strong case, I think, for performance-based compensation, which may very well be the only way to fairly charge for ideas.
"Will it Blend?" is one of the all-time great ad campaigns, IMHO -- because it's better bread. And very few agencies could even begin to make one :60 or even :30 video or spot or whatever you want to call it, for the same cost that those guys produced the whole series.
When you're baking up your next campaign (sorry...I couldn't resist) you HAVE to ask -- is it really better? Not, "will other agencies think it's better," not, "it must be better because we've put so much money into it," but, simply, "will the market think it's better?" That's all that matters now -- because there's lots of free bread out there. Not many people are going to buy yours, just because it's yours; or pay more, just because your charge more, any more. Unless you can justify it with something more than a trophy on a shelf.
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