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Digital not replacing traditional marketing - Miles Young

10 Mar 2010 11:0922 commentsBizLike
The great mistake of today's business environment is to believe that digital can fulfil the role of marketing. It will not, Miles Young, global CEO of Ogilvy and Mather Worldwide, said yesterday, Tursday, 9 March 2010, in Johannesburg.
“Digital has prevailed in the US and the core of our business has lost its sparkle but the sectarian approach of digital has had a profound harm in the US and UK,” Young said, adding that the critical lesson here is to integrate digital into one's business strategy but not to look at it as a ‘world apart'.

Young is in Johannesburg to meet with local staff and attend a workshop, which he said would constitute a learning experience for him.

Claims of TV's ‘death' exaggerated

Since the dawn of the so-called digital revolution, digital marketing has become the talk of the town, with many conference speakers confidently preaching that the end of traditional marketing is near and everyone should convert to the ‘digital religion' if he or she wants to remain ‘alive'.

“There is a huge propaganda going on against TV,” Young said. “But TV is growing and not declining and the myth of its death is sometimes exaggerated.

“Therefore, we have to be very careful when saying that digital can do everything mass media used to do. Digital is simply a way mass media can reinvent itself and remain relevant.

“Digital is not a channel itself because everything has to be digitised. However, it is a complementary component that has broadened and expanded advertising but is not replacing it.

“You can measure digital but you cannot calculate its effectiveness.”

Print ‘messed up'

He added, “As for print media, they have themselves to blame for messing up and giving away online content for free.

“However, at the end of the day it is all about content and future investments. One of our clients, The Economist, is still doing well - people are still buying and reading because they have invested in journalism.

“Look, after all it is not the end of the world for traditional marketing.”

Into Africa

Despite a difficult year, Ogilvy SA has scooped some big but hotly contested business wins in 2009, including Cell C, SAA, FIFA, PPC and Coca-Cola. The agency was the top performer at the 2009 Loerie Awards, as well as the 2009 Eagle Awards for print advertising, and was voted Ogilvy Worldwide's best agency at the Cannes International Advertising Awards 2009.

“Joburg is a fantastic office and one of our best because there is so much talent and creativity here, which have produced great results. That is why I came here to learn and not to teach,” Young said.

Ogilvy SA CEO Nunu Ntshingila said, “We are looking to grow into Africa and efficiently serve our clients in those markets. We have developing markets in DRC [and] Angola, as well as a fantastic market in Kenya and we are investing more resources in those markets. Going forward, we want to say that we are building a strong capacity in Kenya.”

Young added, “We have great ambitions to become the best agency in the planet and Africa is going to be part of our global strategy in the next five years. Our clients have started to talk a lot about sub-Saharan Africa in the last 18 months or so.”
 
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About Issa Sikiti da Silva

Issa Sikiti da Silva is a winner of the 2010 SADC Media Awards (print category). He freelances for various media outlets, local and foreign, and has travelled extensively across Africa. His work has been published both in French and English. He used to contribute to Bizcommunity.com as a senior news writer.View profile and articles...
JJ
Death of TV, Radio, Print, Outdoor, etc is a desperate attempt by Digital agencies to get business.-
Keep harping on guys. Millions of people watch TV. Millions read. Millions listen to the radio every single morning; every evening. And over the past few years, a few other communication channels have joined those ranks. Please get over saying that Digital is going to be the death of every other medium. Posted on 10 Mar 2010 12:05
Praise be to King Miles Young-
The incidence of on line is minimal, just look at how many people have access to the internet in South Africa. The digital brigade have been banging on ad nauseum about the so called future. It is very specialised to a very small market. So get back into your boxes and s. . . the f. . . up already!
It may be the real deal in Western Europe and the US, but in Africa? I don't think it will be for some time yet. Marketers should focus on main stream communication. Sure, travel agencies and airline booking is going on line, but not FMCG business. Posted on 10 Mar 2010 12:32
Gordon Parkin
There is no "Real" or "Digital" life - it's the same place.-
The Traditional Advertising campaign model is constructed around the cost of media placement and not the usefulness or logic of marketing.
To this end it has become an awareness and anticipation model that does not create sustainable customer loyalty or relationships.
The 360 degree agency mindset is about advertising content and channels, but what is more relevant and ultimately more rewarding are brands who facilitate conversations, co-creation and provide utility.
However, I agree with Mr. Young on "the sectarian approach of digital has had profound harm" and that "the critical lesson here is to integrate digital into one's business strategy but not to look at it as a ‘world apart'."
Marketing is not about selling stuff, it’s about giving people a reason to purchase things and that means brands must become more contextually relevant in peoples' lives.
Context is about communication in a landscape where people & activities are more important than media impressions.The goal is not to add to unwantedness but to create deliberate and appreciated value. It’s about earning ownership of the experience where your products are used that will shape the brand, where we are not interrupting conversations but contagiously igniting them. It's not about the technology, what is important is how those technologies have become immersed into our everyday life. This gives us access to people in a very different and deeper way that is very measurable and where effectiveness can be calculated. Posted on 10 Mar 2010 13:09
Integration between the two-
Digital marketing cannot replace traditional marketing. The two have to be integrated for the success of a campaign. Yes it can be measured but it's effectiveness cannot be spoken for. Digital marketing is the invention of television back in the day. Newspapers thought it was the end of the era for them but they had to learn learn to utilise each other effectively. Posted on 10 Mar 2010 13:11
Rhuey46
Scared?-
I think agencies and traditional marketers are just too scared to move into the digital era. Now they are scrambling to make some sort of credibility based on their past.

The traditional agency is dying and marketing is certainly not what it used to be, businesses models are changing and the agencies are not. It is still a bit of a hit and miss but for the most part agencies are not trying hard enough and therefore becoming less relevan in consumers lives.

"Marketing is not about selling stuff, it’s about giving people a reason to purchase things and that means brands must become more contextually relevant in peoples' lives." - Gordon Parkin (above) - I don't agree with this, I think this is a contradiction in itself. Consumers will dictate to brands and companies what THEY want.

Ultimately digital is the future, especially if you consider mobile in Africa,it is BIG. Although we may not currently be exactly up to scratch with developed markets, they will heavily influence us and we will become more digital based.

I think more emphasis needs to be placed on the youth and not in the minds of old school marketers.

- in my opinion Posted on 10 Mar 2010 13:39
Gordon Parkin
No Contradiction-
Rhuey46, I do not understand how you perceive my comment on marketing as a contradiction? This is why there are usually two departments in large companies; one to perform the marketing function and the other to solicit sales. For example: If I know you are running a marathon and I tell you about a pair of running shoes that have all the qualities you are looking for in a shoe (marketing); I am not selling you the product, but I am giving you a reason to go to the store and possibly make a purchase.
Consumers have ALWAYS dictated to brands what THEY want; the difference now is that they have a forum and a voice where they are being heard by millions and not just the brands customer service department, therefore unless a brand wants to commit suicide they had better be listening and responding on a personal level.
I fully agree with your comment on the youth market and this is where digital and mobile brand communication is second nature and will continue to grow rapidly and have more relevance than traditional media but don't forget that the 45+ age group are the largest segment on Facebook where many iconic brands such as Coke have made a massive impact. What technology has done is to socialise media to become more democratic and therefore more relevant. Posted on 10 Mar 2010 14:27
What a surprise-
What a very surprising comment from a traditional ATL agency group that just had their worst year ever!

The future is integrated and as such we will all need to have all the skills of all the media available in the new marketing landscape. Posted on 10 Mar 2010 14:03
easyrider
Not So young....-
Assumptions are bad, but one can normally look at the local agencies website first to see whether they are geared for Digital (ogilvy is not), their clients (not) and then the age of the staff members on key accounts (old in Ogilvy's case). After years of trying to get Ogilvy to spend more online, it becomes quite clear that it was and will never be on their media schedules as this comes from the top and they are very professional in finding ways to not use digital to fullly integrate campaigns and in doing to not always looking after the best interest of their client. Online is not for everyone and will not replace any mass media in the next 5 years in SA and only compliment it. However one should at least look a the medium when doing a media schedule Mr. not so Young and the rest of the Key account Managers at Ogilvy. Posted on 10 Mar 2010 14:45
Gordon Parkin
Open Invitation-
It's obvious that there is a lot of latent debate on the subject matter and some deep feelings towards agencies, so ...I'm looking for one person to speak at a MoMo (Mobile Monday) presentation at the end of this month (Cape Town, March 29). I would like to offer this spot to any Agency, especially Ogilvy, so that they can discuss how mobile and digital is being used as part of the marketing mix and what they believe the future holds. Any takers? give me a call 0823386967. Posted on 10 Mar 2010 15:07
JJ
Easy there, easy rider.-
Little bit bitter, are we? Dude, or Dudess, Agency people are smart people; not matter how old we are. We will, and have started cracking the digital medium that is now a part of the marketing mix. When TV came out, we struggled with it, but cracked it big time. When outdoor came out, we struggled, but cracked it big time. Digital has been around and we are struggling, but boy, or girl, we're gonna crack it. Big time! We're smart people, us lot. Posted on 10 Mar 2010 15:10
eascomment-
start cracking..... agencies that are good @ online:

Aqua
Stonewall
Lighthouse
Isobar
Purple Cow
Acceleration
Digivox
etc

The ones that still need to pick up the whip and start cracking or be whipped...
Jupiter
Ogilvy
Joe Public Posted on 10 Mar 2010 15:31
JJ
My mistake.-
Sorry, you're not a little bit bitter. You are totally bitter. Take it easy. Go for a ride. What's your beef with Jupiter, Ogilvy's and Joe Public? Posted on 10 Mar 2010 16:19
James Blonde
Digital media?-
If digital media is electronic media as apposed to analogue media. If TV and Radio are electronic mediums, then that should make them digital media. Right? Dunno? Just wanted to ask you clever guys. Posted on 10 Mar 2010 16:30
Loopy da Poop
So is it a natural evolution or a resistance is futile scenario?-
Having read both the main article & the previous comments from everyone on this topic, I am sometimes awed by the immense scale and implications of what is lying ahead, and wonder if everybody is 'getting it', or have I simply lost the plot?

There definitely has been a hierarchical segmentation in the agency industry resulting from each new technological step in the world. Before the early Mac IIci's even hit our shores, I remember mocking up copy with 'letraset' of all things, and if you did not have a lightbox to view your tranney's and swish your traces, or a drawing board to stencil up a logo, you were in deep poop. They were the golden days of print, packaging, signage and exhibition design. Sure, ATL was in place with big screen tobacco commercials and other products along a similar vein, and to an alternate mind or budget, the radio was a healthy tool. But I don't think ATL was a key growth area as such or as much as it has become today. The introduction of TV is what gave ATL it's true wings, and enabled it to grow in leaps and bounds, and segregated the industry collective into more niche area's. With IT media implications exploding in the early 90's, what is really significant is that it has taken longer for the industry to adapt around the digital market, than the time it took for the TV market. 20 years later and we are still debating traditional vs digital. That to me is really significant, and pointless, and raises two questions: have we been dragging our feet to commit resources to the inevitable, or has it truly been a learning curve of note, that us *smart* people are still trying to get our head around? I personally am not a believer of the latter, and would even suggest that the industry has been deliberately stalled by the bigger ATL agencies, for fear of losing the vast and traditional profit margins. As 'leaders of men' - they are the ones at the back of the race.

I look at agencies like Aqua Online, that have embraced digital media with a vengeance, and are boxing way above their weight with any digital need. Yet the lumbering big five elephants are simply that..lumbering. So we have all these new platforms from 3 & 4G, Ali-G, wAP, touchscreen, whippedcream, streaming, pay-per-view, broadband, aliceband & satellite - all significant terms that define our new industry. We are definitely in another phase of splintering. Perhaps the reason it is taking so much longer this time round, is because technology in general is changing and evolving at such a rapid rate. Some of the bigger agencies are embracing the whole diversification plan, some are not. Some I think because they cannot afford to. One of the previous comments was that traditional will always be here, I agree with that, for the time being. And so will TV, and so will our new found digital media phenomenon. So why are things moving so slowly this time round?

If we wish to retain our clients in a one-stop shop relationship, then the answer in quite evident. Everyone has to diversify and provide all the solutions that complete the brief. Practically, that's actually impossible. Most will not, which (let's be honest here and not fool ourselves) will lead to clients spending less and choosing more prudently, targeting avenues of where and how they want to market. We all know marketing works Gordon, and the average Jo knows that too. They actually are quite savvy, and where to place that shoe, is the question that is now being asked. Instinctively, and ultimately, the new media industry is where they WILL land up. So where does that leave the big brick & mortar agencies that rely on the huge revenues that traditional ATL generates? Frankly, I don't care. And neither should any new young agency that can read the writing on the wall. My advice would be to diversify as quickly as you can, strengthen your digital media department, and utilize the traditional mediums as little as possible, or if you are currently unable to do that right now, then gradually wean yourself off the reliance, as digital media become more and more a part of our everyday lives.

Ultimately Mr Young, in your experienced heart-of-hearts, you know traditional will be reduced to a trickle and fraction of what it is today, and perhaps even die the death some believe it now deserves. Whether that be in 5 years or 50, it is inevitable. Posted on 10 Mar 2010 16:38
James Blonde
What kind of name is Loopy Da Poop?-
Is it Dutch? I had a Poop once. Posted on 10 Mar 2010 16:44
Poopy Da Loop
Loopy Da Poop-
I had a poop once....and it was shaped like a mountain lion. Posted on 11 Mar 2010 10:51
James Blonde-
u plonker ;) Posted on 11 Mar 2010 10:53
Rhuey46
Nicely put-
Thanks for the good summary of this dabate, I think that is something I can agree to! Posted on 10 Mar 2010 20:46
easycomment-
Loopy gave a very good summary.... watch this space. Spreading the digital word. Posted on 11 Mar 2010 10:48
Digital Over Traditional-
I think Mr Miles Young is holding on to the past, look around you and even at yourself and you will soon notice that the consumption of television programming is on a downward spiral and more and more people opt for digital media as it allows for people to consume content at their leisure and convenience. As a consumer I want a brand to engage me and television does not allow for that. Posted on 12 Mar 2010 06:52
j
People love TV. Love Radio. Love Digital. Love Press. Love Cinema.-
What is actually your guys' problem? Rather spend your time getting all the mediums out there working beautifully together for your clients; instead of continuously saying "Mine is bigger than yours!" Posted on 12 Mar 2010 09:24
Eeeek!-
What is customer liason department doing here? Posted on 12 Mar 2010 09:57
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