Lean Fables from Adland

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Gave this talk at Ignite: Lean Startup at Pivotal Labs on June 22, 2011.

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Two Lean Fables from

Adland#LeanIgnite

Our business: Ads.

Commissioned by clients.

Designed by agencies.

Executed by vendors.

All agencies seem lean in a pitch.All agencies seem lean in a pitch.

http://rpminsights.blogspot.com/2010/04/our-creative-department.html

But after a pitch...But after a pitch...Client RFPClient RFP

MediaMedia

ProductionProduction

Planning & Creative

Planning & Creative

Creative TestingCreative Testing

Account ServiceAccount Service

How do agencies make money?

Billings = Whatever it costs to produce work

Revenue = ~15% of billings

Profit = ~20% of revenue

Perverse incentives

Agency v. Manufacturer

Campaigns v. Product

ROI?

Fable #1Fable #1““WhereWhere’’d everybody gd everybody g

o?o?””

Develop a vision.

Get out of the building.Get out of the building.

Don’t waste resources.

Make it better.

Fable #2Fable #2““Is it the bitIs it the bits?s?””

No vision.

Research is too often used the way a drunk uses a lamp post:

for support, rather than illumination.

But we got out of the building anyway.

But we got out of the building anyway.It couldn’t have been the bits -

Nobody knew they were gone.

In fact, nobody’d heard from the brand in years.

People (and dogs) had changed -

Lots more choices, no more junk food.

It couldn’t have been the bits -

Nobody knew they were gone.

In fact, nobody’d heard from the brand in years.

People (and dogs) had changed -

Lots more choices, no more junk food.

““YouYou’’ve got 99 ve got 99 problems...problems...

and the bits ainand the bits ain’’t one.t one.””

We suggested a pivot.We suggested a pivot.Three-ingredient dog food.

Real food, no fillers.

With a new brand ID & campaign connecting the old, loved image (something dogs love), to a new doggie parenting style (something owners love giving dogs).

Three-ingredient dog food.

Real food, no fillers.

With a new brand ID & campaign connecting the old, loved image (something dogs love), to a new doggie parenting style (something owners love giving dogs).

““Thanks, but we just Thanks, but we just wanted to know if it wanted to know if it

was the bits.was the bits.””

It’s easy to talk about lean.

It’s hard to be lean.Google

#Firestarters: Agile Planning

Google #Firestarters: Agile Planning

Do Agencies Need to Think Like

Software Companies?

Do Agencies Need to Think Like

Software Companies?

Principles of Lean Start-ups (for Ad Agencies)

Assume the client briefs are hypotheses to be tested.

Continuous customer interaction - with both client & consumer.

Establish clear goals for the campaign from day one.

Start simple, and then iterate on successes and learn from failures.

Create right-sized, integrated teams, provide the right resources & tools as they are needed, and keep score with vendors & partners.

Thank you,

@farrahbostic