George Tannenbaum, veteran creative director, discusses the changing nature of the advertising industry, the deification of data, and why procurement deserves to win in negotiating battles. The importance of differentiation in advertising and the value of artful solutions are also explored. The evolution of creativity in advertising is discussed, highlighting the impact of data obsession on innovation, emotions, and human connection.
Advertising has become undifferentiated, leading to a commodification of creativity and a focus on cost over quality.
The rise of digital advertising and fragmentation of media have challenged traditional agencies to adapt quickly to the changing landscape.
Deep dives
Advertising's Missed Mission: Differentiation
Advertising has forgotten its original mission of defining and differentiating brands. As agencies lose the ability to differentiate themselves, they become a commodity subject to price competition. Without clear differentiation, the value of advertising becomes undifferentiated as well, allowing procurement to prioritize cost over creativity. In the past, advertising served to highlight the unique qualities of brands, but now the industry has become more focused on undifferentiated rectangles, leading to a decline in creativity and a push towards commodity pricing.
The Impact of Fragmented Media and Digital Advertising
The fragmentation of media and the rise of digital advertising, along with the dominance of platforms like Google and Facebook, have changed the advertising landscape. Traditional mass media's reach has diminished, giving rise to specialty brands and impairing the ability of large household brands to operate as they used to. With more alternatives and highly fragmented media, it has become challenging for brands to reach a significant percentage of households without significant investment. This shift in the industry has affected the agency business, with legacy agencies struggling to adapt quickly enough to the changing landscape.
Efficiency vs. Magic: The Challenges of Data-Driven Advertising
The industry's increasing focus on data and efficiency has diminished the role of creative and the magic that comes with it. Many advertising professionals are turning to data-driven decision-making, deifying data and making advertising a more if-then proposition. However, this shift neglects the inherent unpredictability and surprise that comes with creativity. Quantifying everything and relying solely on efficiency stifles innovation and undermines the emotional connection that advertising should create. This obsession with efficiency threatens to turn ad agencies into stylistic entities rather than problem solvers and sales drivers.
In this episode we up the creative content by talking to veteran creative director George Tannenbaum about the changing nature of the advertising industry, the deification of data and why he thinks procurement deserves to win in their negotiating battles with agencies.