Huxley Quayle von Blog

Advertising works. Even in a crappy economy.

Kraft's Second Quarter Shows Payoff From Marketing Efforts Revenue, 

Earnings Up Despite Difficult Economy; CEO Rosenfeld Vows to Keep Spending 

By Emily Bryson York Published: July 28, 2008 

CHICAGO (AdAge.com) -- Kraft reported a stronger-than-expected second quarter this morning, thanks in part to increased marketing spending. Kraft pointed to Mac N' Cheese, Kraft cheese and processed meat as contributors to increased sales. "In terms of building our brand equities, our investments in product quality, marketing and innovation continue to pay off," Kraft chief executive Irene Rosenfeld said during an earnings call with investors. "In this difficult economic environment, our reframing efforts across the portfolio have further demonstrated the value proposition of our brands." 

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Why is it that the "top creative agencies" in Canada do the most free work?

It's weird isn't it? In any other industry the top get paid the most, but here in Canada it seems like quite the opposite is happening. Take a quick look at any Canadian award show book and you'll see that an overwhelming amount of the winning ads, the best work one might say, is pro-bono. Ads created for dog bakeries, dog clothing stores, porn video outlets, pole dancing classes, and my personal fave, the ever-popular Canadian Fencing Awards. 

My mom used to always say, "be the best and the money will follow". And yet it advertising, it seems the worst (creatively speaking) agencies are the ones making all the dough while the top creative shops are struggling to do freebie after freebie. 

What gives? And why is it that top American and British agencies can do stellar, award-winning work for their biggest clients like Coke, Microsoft (Halo) and Cadbury while here at home The Fencing Awards and Timmies Doggie Treats rule the roost? 

Part of the answer is money. Big ideas often take bigger money than can be found in Canadian budgets. Part of it is that Canadian clients tend to be on the conservative side, as branches of larger American companies. But the biggest part of the problem is the "award show freebie" culture that Canadian agencies have nurtured over the past ten years, since Palmer Jarvis came to national prominence with a slew of small, B.C.-based campaigns. 

Ever since, Creative Directors across the land have flocked to the easy freebie as a way of showing their departments muscle. And that's just what it is. It's easier. This reminds me of a line I once heard in a movie. "Being great is supposed to be hard. It's the hard that makes it great. If was easy, everyone would do it." 

At HQvB we choose to be great, not expedient. It may take us longer. It may require a few more hours a week. We may miss a few birthdays and dance recitals. But that's what we're going to do. We believe the best agencies do their best work for their paying clients. It's better for us, for our clients and for the industry.

A great way to spend 2 minutes

I ran across this site, www.twenty120.com.

What you'll find is a really cool collection of two minute short films from avant-guarde directors. Lots of creative inspiration here.

My fav is Mother's Day, by David Lobser.
 

Model schmodel!

So here we are, six months into launching our "new model" agency. After a couple of other new agencies have launched saying pretty much what we said when we launched we began to wonder if there really is a new model? 

Maybe the differences in agencies has nothing to do with new models or old models. Maybe it has to do with the evolution of smaller companies who become larger. It seems to us that new agencies launch with passion and an "us versus the universe" mentality, which as a newer shop fighting to thrive, I can tell you that you need to survive. 

For us, it's all about the creativity, the work, the innovation and the passion. As a newer shop without a large management structure it's easier for us to be innovative. When we want to go do something, we just do it. When a larger agency wants to do something innovative, people have to meet about it. Reports have to be made. Boardroom battles have to be waged. Money has to be made. 

Maybe this is the real difference in models. At one time, most agencies were small, hungry, innovative and passionate. Then, at some point in their existence, this shifts. They become financial organizations, often with shareholders or holding companies to which they report. 

At the beginning, every agency, no matter what they say, is just a collection of passionate people trying to do their best. They almost all have the lofty goal of making a difference. So the new model for us isn't about interactive, or digital, or non-traditional or any other "buzzword du jour". 

Our new model isn't a new model at all. It's the only model. People working together to do their best. Hopefully that's where we'll always be. I'll let you know when I buy an Aston Martin.

Who would have thought selling people something they can get for free would be so huge?

We read this last week on the Fast Company website and thought it was an incredibly interesting look at the bottled water market and the power of branding in general. 

Message in a Bottle

Wednesday, 21 November 2007 

Americans spent more money last year on bottled water than on ipods or movie tickets: $15 Billion. A journey into the economics--and psychology--of an unlikely business boom. And what it says about our culture of indulgence. 

The largest bottled-water factory in North America is located on the outskirts of Hollis, Maine. In the back of the plant stretches the staging area for finished product: 24 million bottles of Poland Spring water. As far as the eye can see, there are double-stacked pallets packed with half-pint bottles, half-liters, liters, "Aquapods" for school lunches, and 2.5-gallon jugs for the refrigerator. 

Read the whole article at Fast Company