The Fall of the Advertising Agency of Record (AOR) Model
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The document discusses the decline of the traditional advertising agency of record (AOR) model. It notes that Pepsi has reduced its advertising spending with its AOR, BBDO, moving some campaigns to other agencies. The needs and roles of consumers and brands are changing, with consumers now co-creating products. New types of agencies are emerging as alternatives to the traditional AOR. The document argues that while advertising on traditional media is not dead, the old AOR model is dated and in need of change.
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The Fall of the Advertising Agency of Record (AOR) Model
- 1. The Fall of AOR (Advertising Agency of Record)
- 3. Software/Web Developer – Silicon Valley
- 4. Work
- 5. Work
- 6. Work
- 7. Work
- 8. Work
- 9. I worked in the Ad Industry
- 14. The Consumers
- 15. Maslow’s Hierarchy of Need
- 17. Consumers are now Co-Creators of products
- 20. • 110-year-old • Over 40 flavors of Pepsi Worldwide • 11 logo redesigns since 1898 • Over 30 different slogans since 1930 • $142 million Ad Spending in 2006 History of Pepsi Ad
- 21. The Ad Agency – The Influencer
- 23. • $142 million spent in 2006 • $94 million spent in 2007 • $60 million spent in 2008 • BBDO out, TBWAChiat in (2008) • Pepsi Digital left TBWAChiat (2009) Pepsi Ad Trend
- 24. • Pepsi Digital – Moved to Huge • Gatorade – Moved to VML • Sobe – Moved to FirstBorn • Ditch 2010 Super Bowl Ad ($33 million spent in 2009) • Refresh Everything – Social Campaign ($20 million year-long campaign) Pepsi in 2010
- 25. Projected Global Ad Spending for 2010
- 26. Traditional AOR
- 27. New Breed of Agencies
- 28. Work • Launched in 5 languages in 9 countries in Asia Pacific • 4 Million unique visitors in 3 months • Over 15k visits per day • Over 20 minutes time-spent on average • Still one of the most successful Nike Football Ad campaign ever done Nike – 90 Days of Football
- 29. • Download proceeds generated $1 million for Team USA • Over 20k visits per day on English & Spanish Microsites • 27k downloads of Soundtrack widgets • Over 3k iTunes click through per day on iPhone • 2 million Video content views • Most-recalled sponsor feature during the Olympic game AT&T Team USA Soundtrack Campaign
- 30. Work • Launched in 5 languages in 9 countries in Asia Pacific • 4 Million unique visitors in 3 months • Over 15k visits per day • Over 20 minutes time-spent on average • Still one of the most successful Nike Football Ad campaign ever done Nike – 90 Days of Football • Over 500 Band Submissions (4x last year) • 86,000 votes casted • 50 million impressions online; 125 million impressions offline • 30k visits in 4 months; 60k visits in 6 months; and 7x Pass Along • Most successful online competition of its kind Airwalk – Unsigned Hero
- 31. Advertising on Traditional Media is NOT Dead
- 32. AOR Model Is Dated