The Fall of AOR (Advertising Agency of Record)

Ming ChanCEO/CTO, The1stMovementhttp://www.the1stmovement.com

Software/Web Developer – Silicon Valley

Work

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I worked in the Ad Industry

About The1stMovement

The Advertising Industry

The Consumers

Maslow’s Hierarchy of Need

Consumers are now Co-Creators of products

Brands / Advertisers

• 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

The Ad Agency – The Influencer

• $142 million spent in 2006

• $94 million spent in 2007

• $60 million spent in 2008

• BBDO out, TBWA\Chiat in (2008)

• Pepsi Digital left TBWA\Chiat (2009)

Pepsi Ad Trend

• 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

Projected Global Ad Spending for 2010

Traditional AOR

New Breed of Agencies

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

• 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

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

Advertising on Traditional Media is NOT Dead

AOR Model Is Dated

Ming Chanming_chan@the1stmovement.comhttp://www.the1stmovement.comhttp://twitter.com/mingAtT1M