Ad Agencies are Just Like Cruise Ships

Unlimited portions Cruise ships offer allinclusive drinks and allyoucaneat buffets just like agencies with their Scopes of Work amp160Wellfed customers are happy customers it is thought amp160There39s nothing better than coming back for seconds and not having to pay Besides it39s too complicated to account for food on a percustomer basis amp160Better to load up the serving line and let 39em come 39til they39ve had their fill amp160Build in the cost if you can in the allinclusive price amp160Be known for allyoucan eat amp160You can cut the quality but never the quantity amp160Whatever you do don39t lose the customerBig fixed costs amp160It costs a lot to keep a ship afloat amp160The ship must be on the move filled to capacity with feepaying customersamp160who want nothing more than to be entertained fed and amused until their next big cruise amp160An empty stateroom is lost revenue and uncovered overhead amp160completely unacceptable amp160Fill up the ship amp160Do what you must to keep it full and on the move amp160If you39re an agency sell those manhours even if they39re for crappy projectsDiscounting amp160Discount if you must even if the discounts don39t quite cover the free booze unlimited meals and SOW deliverables amp160Watch out though for overdiscounting and attracting the wrong kind of customers amp160Once you get the reputation for being lowpriced and downmarket you39re stuck amp160you can39t inch your way back to premium pricing amp160Ad agencies know this from their experience many agencies are quotcommodity suppliersquot paid at commodity rates amp160All they can do is sell manhours at any price to cover fixed costs and deliver profitsExcess capacity amp160Growth is on the wane in the West and China is the hope to sop up excess capacity amp160According to The Economist quotthe big three cruise operators are now piling into Chinaquot amp160That39s just like the holding companies amp160Let39s hope that growth in China does not flag Otherwise we will see a buyer39s market throughout the world amp160Closer to home quotexcess capacity means great deals on Caribbean cruisesquot Unilever Nestle and PampampG are finding the same thing in advertising amp160Great deals are everywhereamp160 Agency prices have never been lowerCreative awards amp160Who won the coveted 2017 quotCruisers39 Choice Awardsquot in each of twelve categories amp160Who won at Cannes amp160Royal Caribbean39s Allure of the Seas won the quotBest for Entertainmentquot amp160Interpublic39s McCann Spain won the quotGrand Prix in Entertainmentquot amp160FunOperations amp160Above deck cruise ships and ad agencies provide food entertainment and creativity amp160Below deck we must never forget the ship39s company and the officers who keep the ship on course amp160They avoid Titaniclike icebergs and keep the machinery running amp160This requires discipline professionalism seniority and common senseDownsizings amp160Unfortunately though cruise ships and agencies downsize and juniorize to keep costs down in the face of allyoucaneat price competition amp160This increases the risk of operational accidents amp160Not all captains are up to standards as we learn from time to timeRough weather amp160For cruise ships 2016 had its moments amp160Anthem of the Seas ran into high winds and rough seas quotforcing frightened passengers into their cabins as their belongings flew about waves rose as high as 30 feet and winds howled outsidequot amp160Agencies face the same in 2017 amp160quotAgencies Brace for Impact as Marketing Clouds Loomquot reported Ad AgePrognosis amp160Can cruise ships and agencies stay out of harm39s way or will they end up on the rocks like the infamous Costa Concordia amp160In advertising securities analysts are pessimistic Pivotal Research39s Brian Wieser downgraded the valuations of the entire publicly traded ad sector including Interpublic Omnicom Publicis and WPPAllyoucaneat pricing is taking a toll amp160The SS All You Can Eat is headed for the rocksCartoon Credit Leo Cullum The New Yorker The Cartoon Bank With permissionClick the social buttons above or below to share this story with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

Click to Make Your 2025 Contribution to Support the MediaVillage Education Foundation

Ad Agencies are Just Like Cruise Ships

Author

Publish date

Channel

Archived in

Michael Farmer

Jon Miller | Cofounder Marketo, Engagio | The Gumball Machine is Broken - Rethinking B2B Marketing - By Mike Linton

More Videos:

Click to Make Your 2025 Contribution to Support the MediaVillage Education Foundation

Ad Agencies are Just Like Cruise Ships

Enjoying This Commentary? There's More to Love

Michael Farmer

Jon Miller | Cofounder Marketo, Engagio | The Gumball Machine is Broken - Rethinking B2B Marketing - By Mike Linton

The payment was successful

Cookies