Analysis: Did anyone see that lot coming? Sonja Koremans
The same predictions are made year after year and while 2007 saw some suprises, the big one – the march of digital – actually came true. A digital land-grab took place in 2007 that saw agencies large and small scrambling to hang out a cyber shingle and join the masses offering integrated solutions. Matt Griffin, Deepend managing director, says one global player’s drive to dominate the space set it apart from the crowd.
“To me, 2007 has just been all about digital. It’s like someone turned the internet back on,” Griffin says. “The independents and agencies were in a frenzy to buy up digital shops to bring on board digital skills and the most notable player was Blue Freeway which has consolidated its position this year as Australia’s largest interactive agency.
“It’s interesting that it is still the only pure play digital agency group, which I think has scared the pants off traditional agencies, possibly making this frenzy even more pronounced.”
However, Andy McKeon, MD and founder of four-month-old creative agency Bulldozer, says the depth of the industry’s “digital distraction” this year has come at a price. “I don’t think anyone could have predicted the affect of that preoccupation on creativity,” McKeon says. “It contributed to lame creative work right across the spectrum. I think most in the industry will agree that the vast majority of advertising in Australia was depressing at best this year.”
Meanwhile, the most talked about business move of the year was The Trans-Pacific shift nobody saw coming.
Warren Brown, BMF executive creative director, says the Commonwealth Bank delivered the biggest blow of 2007 when it moved the brand advertising and strategy component of its business offshore to San Francisco-based agency Goodby Silverstein & Partners, away from STW.
“That got the most attention and frightened the hell out of agencies that haven’t strived to deliver a world class product for their clients,” Brown says of the bank’s account shift in February. His agency, which was bought by the Photon Group in September this year in a deal worth over $25m, came out the only local winner, when it managed to bag the tactical and direct marketing component of the CBA account without a pitch.
John Petropolis, Mindshare chief operating officer, points out that the Commonwealth Bank shakeup came as a loud warning early in the year but not everyone took heed.
“I think this year we saw more and more work leaving mainstream agencies in Australia because many have been too focused on protecting their turf and not generating ideas that consumers were drawn to and what we saw with the Comm Bank was the start of that,” Petropolis says.
But Jeff Estok, Global Mall Media general manager of sales and marketing (and former Clemenger Brisbane MD), says in an industry accused of lacking spark, one shop lifted the bar with a “remarkably difficult” task. Through its “Earth Hour” campaign, Leo Burnett Sydney was able to harness the collective voice of 2.2 million people, 200 companies and government on the climate change issue.
“It was great to see an agency creating something from nothing and if there was ever any doubt about the power of advertising this year, Earth Hour restored confidence. It was a simple yet powerful idea that just grew beyond all expectations,” Estok says.
The agency’s work also impressed the jury in Cannes, winning one of only four Lions awarded in the Titanium category.
And unlike Bulldozer’s McKeon, Peter Biggs, Clemenger BBDO Melbourne MD, believes in a break from tradition, mainstream brands took risks this year and reaped rewards at Cannes.
“I was surprised and thrilled to see so-called traditional multinational brands such as Dove (Unilever), Tide (P&G) and Snickers (Mars) taking out the Grand Prix at Cannes this year,” Biggs says. “Bravo to the agencies who created the work, double bravo to the clients who inspired and approved the work and showed the industry that magic can be made and miracles occur when great brands, brave clients and talented agencies gel.”
Lesley Brydon says 2007, which will be her last as Advertising Federation of Australia’s executive director, marked the emergence of regional advertising markets. In particular, the stellar growth rates enjoyed in certain areas.
“There was an amazing growth of agency population in smaller states especially in Western Australia and Queensland,” she says
“An AFA survey indicated that people employed in agencies in those states had salary increases of 20% in the past year which follows several years of little or no growth.”
Brydon says regional power was buoyed by Stockland’s decision to spread its multimillion-dollar advertising account across states and Mitchell Communication Group’s digital expansion in Brisbane and Perth.
Michael Ward, PPR market insights manager, says the internet provided an unlikely platform for activism this year, particularly during the federal election campaign.
“Despite the massive resources spent by government over the course of the year in traditional media, the impact of the smart internet activists such as GetUp was profound and John Howard’s loss of leadership was in no small measure due to that pressure,” Ward says.
“It was the start of a communication phenomenon that we can expect to see much more of.”
Garth Agius, News Limited’s director of marketing, says Rupert Murdoch’s $5bn take-over of Dow Jones in August seem unlikely a year ago.
“The other things that caught my attention this year was Foxtel and the Nine Network beating Seven to the punch and securing broadcast rights to the 2010 Vancouver Winter Olympics and the 2012 London Olympics,”Agius says.
“Elsewhere, it was no surprise to see Eddie McGuire step down at Nine, but you can’t say the same about David Gyngell returning to the helm after leaving two years ago.
“And if you’d placed a bet on Vance Lothringer leading the Ten Network’s sales when he left Nine, you’d be pretty rich now.”
And this time last year, who would have predicted Harold Mitchell buying a creative agency, albiet a digital one. What a difference a year – and the internet – makes.
