From Don Draper to Big Data: The Revolution in Advertising
Jul 21, 2017
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Harvard Business School professor John Deighton and WPP founder Sir Martin Sorrell discuss the transformation of advertising from the Mad Men era to the digital age. They explore the use of big data and the evolution of marketing agencies. They also discuss the challenges of merging creative and data professionals and the importance of the Chief Marketing Officer in navigating the complex marketing technology ecosystem.
Advertising has shifted from traditional creative agencies to data-driven marketing, driven by big data.
Collaboration between creative and data teams is essential for effective campaigns and meeting clients' evolving needs.
Deep dives
Transition from Mad Men to Math Men and Women in Advertising
The podcast episode explores how advertising has evolved from the days of Mad Men to the era of data-driven marketing. Professor John Dayton and Sir Martin Sorrel discuss the transformation from traditional creative agencies to agency holding companies and the importance of art and science in advertising. They highlight the shift from broadcast marketing to personalized one-to-one marketing, driven by big data. The episode delves into the strategic pillars of WPP, the world's largest communications services group, which include horizontality, fast growth markets, digital, and data. The guests emphasize the need for collaboration between creative and data teams to create effective campaigns and meet clients' evolving needs.
Challenges and Benefits of Collaboration in Advertising
The podcast episode addresses the challenges and benefits of collaboration in the advertising industry. Sir Martin Sorrel discusses the importance of getting people from different disciplines and cultures to work together. He highlights the difficulty of coordinating multiple agencies within an organization and the resistance to coordination as individuals try to protect their own turf. However, he emphasizes that clients increasingly want the best people working on their businesses and that coordination leads to better work at a lower cost. Professor John Dayton shares insights on the changing definition of creativity, where creative professionals need to possess skills in data analytics and technology. The guests also discuss the benefits of consolidating marketing activities with a single agency.
The Role of Data and the Complex Landscape of Advertising Industry
The podcast episode delves into the role of data in the advertising industry and the complex landscape of players in the field. Sir Martin Sorrel emphasizes the capacity to store and move data as a game-changer, making data central to marketing today. He discusses the competition among traditional ad holding companies and the entry of tech giants like Facebook and Google. The guests also mention consulting companies and software firms as competitors in the space. Sir Martin Sorrel further explores the importance of data in creating personalized campaigns and navigating the walled gardens of data controlled by companies like Facebook and Google. The episode reveals that the use of data is crucial for differentiation and showcasing real capability in the industry.
Advertising in the digital age bears little resemblance to the “Mad Men” depiction — the Don Drapers of advertising have been replaced by big data and the people who work with it. Harvard Business School professor John Deighton, the author of the case, “WPP: From Mad Men to Math Men (and Women),” and Sir Martin Sorrell, founder and group chief executive of WPP and the protagonist in the case, discuss how WPP has been successful in the new advertising world order where algorithms and robots rule.
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