Posts Tagged ‘Advertising’

April 11th, 2007

Payment by results for creatives?

Mark Hancock recently posed the rather interesting question: “What would happen if the creative department remuneration was allied to sales?”

Well in the early days of advertising, copywriters were often paid by results. And some of them made big money. In the 1920’s Claude Hopkins at Lord and Thomas (ancestor of FCB) was earning $100,000 per year - and yes, that’s in 1920’s money.

Moving to payment by results may have some interesting effects in agencies. It would change the nature of advertising creativity, it would mean more businesslike creatives would flourish, it would mean much closer working relationship between creative and other departments - because creatives would be big stakeholders in sales success and, last but not least, it would mean that advertising becomes far less of an art form and far more of a business tool.

The closer working relationship bit is interesting. Over the years creatives have become more of an isolated and protected species within agencies. They are often kept away from clients, they sit in glass offices whilst everyone else is open plan, they are contacted via planners, and not generally exposed to the day to day goings on in an agency.

Surely it would be a good idea to bring creatives out into the open. Bring them into the centre of things. If they did have a stake in sales success they would be encouraged to think more about business results and less about ‘art’. And this may will give agencies back that one thing they regret losing the most - the proverbial seat at the boardroom table.

And so to conclude, I very much look forward to being abused by a creative team for reducing their earnings by messing up a coupon code or tracking cookie…

March 6th, 2007

So, are people watching more or less TV?

Depending on who you ask, you will get different answers to this question. Some will tell you TV viewing is buoyant and very healthy, others will tell you TV viewing is stable, i.e. flat, and some will tell you that TV is in severe decline.

I did a simple exercise. I went to BARB and looked at the total viewing for the top 10 viewing events - i.e. individual programmes on their best rating day for the years 1981, 1985, 1990, 1995, 2000, 2005 and 2006. As an additional indicator, I looked at the best audience achieved by Coronation Street in each of those years. Here’s what I found:

In 1981, the sum total of the top 10 viewing events was 213.8m. By 1990 the sum of the top 10 had fallen to 176.2m and by 2000 it had fallen again to 150.5m. Then in 2005, things got….. well, much worse. In 2005 the sum of the top 10 programmes was 116.7m. That’s just over half of what it was in 1981. In 2006, the sum of the top 10 audience climbed back to 139.9m. But that was the World Cup year. Out of the 10 top rating programmes, six were World Cup games and of those six, five were England games. Now this isn’t a scientific study of TV viewing and it does have a major flaw; it does not account for the fact that viewing is now dispersed across a greater number of channels than it was in 1981, or indeed 1990. In 2006 there are hundreds of channels whereas in 1981, there were less than a handful.

As another indicator, I looked at viewing trends of Coronation Street between 1981 and 2006. In 1981, the Street’s best audience figure was 18.8m. This actually grew to 21.4m in 1985, by 1990 it was 19.2m and in 1995, it was steady at 19.4m. Then in 2000, well….. things took a turn for the worse; the top Coronation Street airing fell to 18.9m. This downhill trend has continued ever since with 14.3m tuning in in 2005 and then another fall to 12.6m in 2006. That last figure is the greatest cause for worry amongst TV executives - it’s a 12% decline in just one year. But then again, it was that World Cup year.

By these two like for like measures over the past 25 years, the story is one of undeniable decline. And were it not for the World Cup in 2006, things would probably have looked much, much worse. Whilst the explosion of channels may mean that this is not a true reflection of overall viewing figures, it certainly shows one thing - the viewing of BBC and ITV, this country’s major TV content producers is hugely down over the 25 year period.