lean fables from adland

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Two Lean Fables from Adland #LeanIgnite

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Gave this talk at Ignite: Lean Startup at Pivotal Labs on June 22, 2011.

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Page 1: Lean Fables from Adland

Two Lean Fables from

Adland#LeanIgnite

Page 2: Lean Fables from Adland
Page 3: Lean Fables from Adland

Our business: Ads.

Commissioned by clients.

Designed by agencies.

Executed by vendors.

Page 4: Lean Fables from Adland

All agencies seem lean in a pitch.All agencies seem lean in a pitch.

http://rpminsights.blogspot.com/2010/04/our-creative-department.html

Page 5: Lean Fables from Adland

But after a pitch...But after a pitch...Client RFPClient RFP

MediaMedia

ProductionProduction

Planning & Creative

Planning & Creative

Creative TestingCreative Testing

Account ServiceAccount Service

Page 6: Lean Fables from Adland

How do agencies make money?

Billings = Whatever it costs to produce work

Revenue = ~15% of billings

Profit = ~20% of revenue

Page 7: Lean Fables from Adland

Perverse incentives

Agency v. Manufacturer

Campaigns v. Product

ROI?

Page 8: Lean Fables from Adland

Fable #1Fable #1““WhereWhere’’d everybody gd everybody g

o?o?””

Page 9: Lean Fables from Adland

Develop a vision.

Page 10: Lean Fables from Adland

Get out of the building.Get out of the building.

Page 11: Lean Fables from Adland

Don’t waste resources.

Make it better.

Page 12: Lean Fables from Adland

Fable #2Fable #2““Is it the bitIs it the bits?s?””

Page 13: Lean Fables from Adland

No vision.

Research is too often used the way a drunk uses a lamp post:

for support, rather than illumination.

Page 14: Lean Fables from Adland

But we got out of the building anyway.

But we got out of the building anyway.It couldn’t have been the bits -

Nobody knew they were gone.

In fact, nobody’d heard from the brand in years.

People (and dogs) had changed -

Lots more choices, no more junk food.

It couldn’t have been the bits -

Nobody knew they were gone.

In fact, nobody’d heard from the brand in years.

People (and dogs) had changed -

Lots more choices, no more junk food.

Page 15: Lean Fables from Adland

““YouYou’’ve got 99 ve got 99 problems...problems...

and the bits ainand the bits ain’’t one.t one.””

Page 16: Lean Fables from Adland

We suggested a pivot.We suggested a pivot.Three-ingredient dog food.

Real food, no fillers.

With a new brand ID & campaign connecting the old, loved image (something dogs love), to a new doggie parenting style (something owners love giving dogs).

Three-ingredient dog food.

Real food, no fillers.

With a new brand ID & campaign connecting the old, loved image (something dogs love), to a new doggie parenting style (something owners love giving dogs).

Page 17: Lean Fables from Adland

““Thanks, but we just Thanks, but we just wanted to know if it wanted to know if it

was the bits.was the bits.””

Page 18: Lean Fables from Adland

It’s easy to talk about lean.

It’s hard to be lean.Google

#Firestarters: Agile Planning

Google #Firestarters: Agile Planning

Do Agencies Need to Think Like

Software Companies?

Do Agencies Need to Think Like

Software Companies?

Page 19: Lean Fables from Adland

Principles of Lean Start-ups (for Ad Agencies)

Assume the client briefs are hypotheses to be tested.

Continuous customer interaction - with both client & consumer.

Establish clear goals for the campaign from day one.

Start simple, and then iterate on successes and learn from failures.

Create right-sized, integrated teams, provide the right resources & tools as they are needed, and keep score with vendors & partners.

Page 20: Lean Fables from Adland

Thank you,

@farrahbostic