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The time has come "logos on the $ 1000"
«Lowest price it's a great strategy, but only for one company." Chinese proverb business. I>
Author: Andrei Fyodorov, CEO of creative agency Sahar i>
The advertising industry is racing to a standstill. More precisely it has already stalled, it already follows it and soon abuts the wall. If earlier the key success factor was the speed, ingenuity, intelligence and professionalism. Now it was replaced by the famine. Or rather the willingness to fast is better than others.
What I mean. Starting approximately from October last year, I heard about the unimaginable prices which appear on the market. One of the largest network of agencies, which is ready to shoot video of the TV 4 000 USD (fee). Logo and corporate style for 1, 000 US dollars from one of the market leaders. The large-scale comprehensive advertising campaign for the 10, 000 USD (the work of a large team within the agency for about four months), complete the PR service of the mobile operator with a mountain of projects for 3000 USD continue in the same spirit. Website for 500 USD This is the price the market leaders, not disenfranchised from the dense hinterland! On direct questions about pricing many colleagues crumple and respond in general terms about the optimization and adaptation. They are embarrassed by their prices. Do freelancers and small companies the real level is still several times lower. I heard a story about the actor, who starred in the movie because he washed the car. It is symbolic. The market for a couple of months all price leaked achievements of the last five, if not ten years. Discard moralism. It just happened.
Guilty look pointless, as you can understand both sides. Agency, being without orders, using all the tools to get at least something. Customers felt it rock and began to actively and accelerate this situation. I understand them. In their place, I would do the same. The critical mass of individual cases to brake the whole situation.
What we really have now. Denomination industry. Marketing director pressured from two sides. On the one - leaders who are selected and cut the budget, and require instantaneous efficiency. On the other dozens of hungry agencies and professionals who suddenly decided to take a proactive new business and offer their services. Not expensive. This agency porridge mixed grades, formats and levels. Customers choose between top agency and two freelancers and work in general without anyone ("on their own" - the most popular model). For example, shoot your own video directly prodakshenom. Some of the Productions quietly "from under the counter" offer creative. Agencies are beginning to take themselves the benefit of producers laid off, even though the party created. This. As a result, the market structure is rapidly destroyed, severely affected ethics and aesthetics. The battle begins for survival, a game without rules, and sometimes smells bad. Price becomes a key criterion for selecting a service provider for 80% of customers.
Where will this lead or has led.
1. Often, winning is not the best, and the most hungry. Ie those who are willing to offer the ultra super low prices, so do not just reduce the staff, not just to reduce salaries, not just give up profits, and maintain a modest (pathetic?) exist. I, for one, is not ready for such a victory. I pass. And as a person and as a company.
2. People with chopped off and mutilated salaries do not think about work, and about his hard life. This crooked effect on their motivation and the quality of what they do. Now on the market a lot of worthy professionals who can not find work for several months. Desperation drives them to reduce their appetites and to look at other areas. And they are running serious competition and result in further reduction of salaries. The market works ... In addition, it encourages corruption (kickbacks and theft) and it takes more and more bold, frank and ugly. As customers, and in the agencies, people working with budgets and contractors. However, what to think here of corruption has affected not only the crisis but also the general mood in the country where "solve their problems" for normal traffic cop for the President.
3. There has been a drop in respect for marketers and agencies on the part of executives and shareholders of the client companies. "Whistle and tyscha come running." The crisis has not only dropped them at the price killed the ambitions and lowered self-esteem, but also revealed the incompetence of most of them. And now the attitude toward the advertising industry by the majority of shareholders skeptical consumer client business. The erstwhile charm vanished, a miracle no one is waiting. Blah blah blah does not pass and the desired result. Surfaced emptiness, inability to act and create a quick and fresh solutions. Branch may have strict but objective assessment.
4. In marketing a whole lot of "gray", "no" decisions. Mainstream is the overall winner. Many simple, straightforward, and terribly flat advertising solutions. Fear paralyzes many people simply. It is necessary to take more risks and annealed, and companies are becoming even more boring. The theory is that the crisis will spur creativity and bring a lot of bright bold decisions have not yet found a large amount of evidence. They are like small bright dots on a gray sky. Hopefully by the fall of anything to change.
5. Luckily the formation of new islands of civilization. They are formed around the customers who see the situation as an opportunity to strengthen the pool of their own partners. It is the remaining 10% of clients (their share of the money, not in pieces all the more, it is mainly large companies). Their crisis spurred refused to compromise with the former agencies and to find new ones. They are interested in quality. They do not try to crush them at a price. They make sensible market prices and allow partners to make money. In return they get is often not available a year ago, loyalty, proactive and quality of service and solutions. And they are moving forward. Such companies and agencies in the market units. But they are! They were strong and will become even stronger. And we are fighting for it to be with them and among them. Continue to fight and even though there is nothing to believe in the opportunity to do cool projects.
How optimistic would not talk now about the "spring revival of" the market has deteriorated.
And if you compare with the period when there were similar prices and volumes of a few years ago, then the situation was better. After all, not everything is measured by money. It was a different mood was more romantic and less cynicism, it was moving up, not down.
The saddest thing is, I'm really not sure that he had lost the appeal of the advertising market will quickly return to past revolutions, and most importantly of relationships and quality standards. Therefore, we work on it there are three options:
1. To be the best and work with the best.
2. The ability to compete in the fast.
3. Quickly fell in other businesses! And if there is, for example, herring Intrenet or sell something you are not satisfied, you can come up with something all new. You advertisers ...
Author: Andrei Fyodorov, CEO of creative agency Sahar i>
via # image2203155
Author: Andrei Fyodorov, CEO of creative agency Sahar i>
The advertising industry is racing to a standstill. More precisely it has already stalled, it already follows it and soon abuts the wall. If earlier the key success factor was the speed, ingenuity, intelligence and professionalism. Now it was replaced by the famine. Or rather the willingness to fast is better than others.
What I mean. Starting approximately from October last year, I heard about the unimaginable prices which appear on the market. One of the largest network of agencies, which is ready to shoot video of the TV 4 000 USD (fee). Logo and corporate style for 1, 000 US dollars from one of the market leaders. The large-scale comprehensive advertising campaign for the 10, 000 USD (the work of a large team within the agency for about four months), complete the PR service of the mobile operator with a mountain of projects for 3000 USD continue in the same spirit. Website for 500 USD This is the price the market leaders, not disenfranchised from the dense hinterland! On direct questions about pricing many colleagues crumple and respond in general terms about the optimization and adaptation. They are embarrassed by their prices. Do freelancers and small companies the real level is still several times lower. I heard a story about the actor, who starred in the movie because he washed the car. It is symbolic. The market for a couple of months all price leaked achievements of the last five, if not ten years. Discard moralism. It just happened.
Guilty look pointless, as you can understand both sides. Agency, being without orders, using all the tools to get at least something. Customers felt it rock and began to actively and accelerate this situation. I understand them. In their place, I would do the same. The critical mass of individual cases to brake the whole situation.
What we really have now. Denomination industry. Marketing director pressured from two sides. On the one - leaders who are selected and cut the budget, and require instantaneous efficiency. On the other dozens of hungry agencies and professionals who suddenly decided to take a proactive new business and offer their services. Not expensive. This agency porridge mixed grades, formats and levels. Customers choose between top agency and two freelancers and work in general without anyone ("on their own" - the most popular model). For example, shoot your own video directly prodakshenom. Some of the Productions quietly "from under the counter" offer creative. Agencies are beginning to take themselves the benefit of producers laid off, even though the party created. This. As a result, the market structure is rapidly destroyed, severely affected ethics and aesthetics. The battle begins for survival, a game without rules, and sometimes smells bad. Price becomes a key criterion for selecting a service provider for 80% of customers.
Where will this lead or has led.
1. Often, winning is not the best, and the most hungry. Ie those who are willing to offer the ultra super low prices, so do not just reduce the staff, not just to reduce salaries, not just give up profits, and maintain a modest (pathetic?) exist. I, for one, is not ready for such a victory. I pass. And as a person and as a company.
2. People with chopped off and mutilated salaries do not think about work, and about his hard life. This crooked effect on their motivation and the quality of what they do. Now on the market a lot of worthy professionals who can not find work for several months. Desperation drives them to reduce their appetites and to look at other areas. And they are running serious competition and result in further reduction of salaries. The market works ... In addition, it encourages corruption (kickbacks and theft) and it takes more and more bold, frank and ugly. As customers, and in the agencies, people working with budgets and contractors. However, what to think here of corruption has affected not only the crisis but also the general mood in the country where "solve their problems" for normal traffic cop for the President.
3. There has been a drop in respect for marketers and agencies on the part of executives and shareholders of the client companies. "Whistle and tyscha come running." The crisis has not only dropped them at the price killed the ambitions and lowered self-esteem, but also revealed the incompetence of most of them. And now the attitude toward the advertising industry by the majority of shareholders skeptical consumer client business. The erstwhile charm vanished, a miracle no one is waiting. Blah blah blah does not pass and the desired result. Surfaced emptiness, inability to act and create a quick and fresh solutions. Branch may have strict but objective assessment.
4. In marketing a whole lot of "gray", "no" decisions. Mainstream is the overall winner. Many simple, straightforward, and terribly flat advertising solutions. Fear paralyzes many people simply. It is necessary to take more risks and annealed, and companies are becoming even more boring. The theory is that the crisis will spur creativity and bring a lot of bright bold decisions have not yet found a large amount of evidence. They are like small bright dots on a gray sky. Hopefully by the fall of anything to change.
5. Luckily the formation of new islands of civilization. They are formed around the customers who see the situation as an opportunity to strengthen the pool of their own partners. It is the remaining 10% of clients (their share of the money, not in pieces all the more, it is mainly large companies). Their crisis spurred refused to compromise with the former agencies and to find new ones. They are interested in quality. They do not try to crush them at a price. They make sensible market prices and allow partners to make money. In return they get is often not available a year ago, loyalty, proactive and quality of service and solutions. And they are moving forward. Such companies and agencies in the market units. But they are! They were strong and will become even stronger. And we are fighting for it to be with them and among them. Continue to fight and even though there is nothing to believe in the opportunity to do cool projects.
How optimistic would not talk now about the "spring revival of" the market has deteriorated.
And if you compare with the period when there were similar prices and volumes of a few years ago, then the situation was better. After all, not everything is measured by money. It was a different mood was more romantic and less cynicism, it was moving up, not down.
The saddest thing is, I'm really not sure that he had lost the appeal of the advertising market will quickly return to past revolutions, and most importantly of relationships and quality standards. Therefore, we work on it there are three options:
1. To be the best and work with the best.
2. The ability to compete in the fast.
3. Quickly fell in other businesses! And if there is, for example, herring Intrenet or sell something you are not satisfied, you can come up with something all new. You advertisers ...
Author: Andrei Fyodorov, CEO of creative agency Sahar i>
via # image2203155
