Tuesday, August 12, 2008

Out-Of-The-Box-Thinking (Source: USA Today)

This week we would like to share an article, which appeared in US TODAY yesterday. It is a story about Modernista, one of OUR role model ad agencies in the U.S. We just know, we are not alone out here! It is just not the ad or PR campaign alone, which makes it all grooving and going. It is the vision and ideas, the creation of new 'marketing' worlds, the willingness to let go of old school thinking and embracing the 'new'. Autsch - change hurts, but it feels soooo good, after - believe us. We just love Modernista for their hot creative Marketing approach. Great stuff! Here you go! The article is written by Bruce Horovitz:

"The two guys whose quirky ad agency creates ads for Hummer and Cadillac don't figure their future is in advertising.
The future is in ideas, say Gary Koepke and Lance Jensen, co-founders of Modernista. (More on that off-the-wall name later.)
At Modernista, those wacky ideas are remolding the agency from a place to go for ads to a place to seek out a magazine revamp, an instant infusion of online creativity or even a jammin' rock video. With most of Madison Avenue tanking in the Internet age, and Modernista's biggest client, GM, squeezing for cost cuts, perhaps it's time everyone took notice.

"This business is no longer about just creating things," says Koepke, the co-founder widely known for his artistic eye. "It's about conceptualizing ideas — kind of like a think tank." These ideas have begun to decouple from ads that appear on TV screens or in magazines. When U2 went scouting for someone to create its Window in the Skies video, it didn't pluck some sunglasses-wearing Hollywood director. It knocked on Modernista's door. The video is a collection of music greats apparently singing as one from Elvis to Frank Sinatra to The Beatles.

Earlier this year, Modernista oversaw the redesign of BusinessWeek magazine that resulted in an unexpected sales uptick. Should you ever attend a concert where super-cool British trance DJ Paul Oakenfold is spinning tunes, it's a good bet that those cosmic computer visuals on the big screen are Modernista's. And Modernista just won a key Bill & Melinda Gates Foundation gig. Executives say it's not an advertising assignment. Yes, it's for the organization's global health initiative. But it won't be ads, says agency President Clift Jones. Such non-traditional stuff is 25% of the firm's business, and it could be 50% within five years, Koepke says. Modernista sees the future, and it ain't 30-second TV spots.

Its wild website — a virtual window of how the social-networking world views the agency — is turning heads in Ad Land.
Go to its website and you don't see a site, but a transparent vision of what everyone else out there has to say about Modernista. Instead of an agency site rich with hype, it takes you directly to what social sites Wikipedia and YouTube have to say about Modernista.

"It may be meant to scare away clients we don't want to work with," Jensen says with a smile. Its ads are as brash as its site.

These are the guys who — before global warming was a household world — made Hummer a must-have for the ego-obsessed. "They took a limited-production military weapon and made it fun without losing all of its naughtiness in the process," says admirer Jeff Goodby, co-founder of rival agency Goodby Silverstein & Partners. Hummer has since become the poster child for global warming's evil. (More on that, later, too.) This also is the agency that got actress Kate Walsh, star of ABC's Grey's Anatomy, to sit in a Cadillac and utter in her sexiest voice, "When you turn your car on, does it return the favor?" Ad historians may some day point to that moment as the very nanosecond when Cadillac's image popped a cultural wheelie.

Modernista never dreamed of having clients like Cadillac or Hummer — or of helping to lead the ad world's evolution away from conventional media — when Koepke and Jensen started the agency eight years ago on one floor of a warehouse that borders Boston's Chinatown district. Nor did they have any notion that their billings would eventually rocket near today's $900 million. (Agencies with billings over $1 billion have hit the big league.) All they really wanted was to create ads on their own terms. But with a tiny staff and cramped offices in a onetime garment factory, that seemed quite a stretch. Clients came anyway. Among them, brands with the hippest or wanna-be hippest of images: Gap. MTV. Napster. Converse. Each of those clients has moved on — as restless, cool-craving brands do — but Modernista has replaced them with more than GM's fleets of gas-guzzling Hummers and Caddies.

Modernista did the unthinkable: It filed a $500,000 lawsuit last year against its client, shoemaker Rockport, while working for it. The lawsuit claimed Rockport wasn't paying for work. They've since parted ways. Regardless of who wins, the lawsuit is a clear message that few agencies dare to deliver to clients: Don't mess with us. Still, clients come. Modernista creates ads for the Bono-inspired Product Red campaign, which gives some profits to fight AIDS. It's behind the offbeat financial-services ads for TIAA-Cref — with little-known singers crooning Somewhere from West Side Story.

Modernista's offices are wacko. You take a freight elevator to get in. Employees sit playing chess in the middle of one workroom. An eclectic CD library lines a wall of one floor. And what about the agency's over-the-top name? "We made it up," says Jensen, "only to find out it was a real word." It means one who subscribes to the tenets of the modernism movement. Unlike most ad agencies, which — like law firms — tend to be named after their founders, Modernista clearly is not. "It's by far the best of company names that don't involve names of real people," says Goodby. "Wait," he jests, "is someone there named Modernista?" Nope. A far better choice the name Modernista was than the one that finished just below it: Groop. (Right: like Group, but spelled in a forced-groovy way.) Of course, it's not the name that matters, right? It's the stuff. And these guys are becoming as well-known for the gee-whiz stuff they do for clients who aren't coming to them for advertising as those who do.

Here are some things they've done for non-advertisers:

U2 video
Modernista got its hands into a hot rock video. Bono, who worked with Modernista on the Product Red campaign — and loved the work — tapped them for this, too. Getting approvals from famous musicians was a feat. But Bono nudged reps for The Beatles, Elvis, and Frank Sinatra to sign on. A team of Modernista workers spent more than four months on the project. But it landed images of everyone from Nat King Cole to Jimi Hendrix to Frank Zappa in a wild jam-like session.

'BusinessWeek' redesign
The BusinessWeek redesign that Modernista oversaw late last year was a natural for the agency, Koepke says. "A message like BusinessWeek's front cover is their advertisement," he says. Executives at BusinessWeek were blown away by the redo."We don't think of them as an ad agency," says Stephen Adler, editor-in-chief at BusinessWeek. "To us, they have a very interesting design department that happens to be inside an ad agency." Adler says the results speak for themselves. At a time of steep sales declines for most magazines, it eked out a 1% circulation gain during the first six months of 2008.

DJ computer images
When Oakenfold's 2008 World Tour began, the DJ didn't just cart around a lot of high-tech equipment. He also brought along kaleidoscope-like images of colorful landscapes and cosmic people that blend with the music — images created by Modernista. Modernista is widely known for linking music from often-obscure artists with compelling visuals in its TV spots. That attracted Oakenfold's attention.

Here are some things they've done for key advertisers:

Hummer
Hummer sales are plummeting — down nearly 60% this year — but nobody's blaming the ad agency. To the contrary, Modernista's ads arguably made Hummer the envy-mobile back in 2000. It may be best known for a 2006 Super Bowl ad for Hummer with two monsters — a towering robot and a Godzilla-like creature — that happily spawn a red Hummer."Lance and Gary have a passion for the car business," says Liz Vanzura, who oversaw marketing at Hummer and then Cadillac, where she hired them. "What makes Modernista different is that they focus on understanding the real business issues." The agency founders are realists about potentially losing the Hummer business after GM finally unloads its fast-sinking division that's now openly on the block. "If it goes away," Jensen says, "we'll have to make a new baby."

Cadillac
All Modernista did for Cadillac was resurrect its image, make its redesigned CTS rollout a hit and get consumers buzzing about the brand. After the work Modernista had done for Hummer, it's no surprise that Cadillac approached Modernista when Vanzura was named its marketing chief. Good decision: The new CTS had double-digit sales growth for the first eight months after the launch. "Dealers started to see import-oriented buyers shopping in the Cadillac showroom," says Vanzura, who recently left GM. Modernista opted to celebrate the word Cadillac. And, of course, it got Walsh to coo for Caddie. Walsh has a new line in upcoming ads, but Modernista execs won't say boo about it, yet. Odds are, it'll be a hottie. Asked what Walsh has done for Cadillac, Jensen — before singing her praises — ponders a moment then turns the question around: "Isn't the real question: What has Cadillac done for Kate Walsh?"

Monday, July 21, 2008

Are You In or Are You Out? Reality Check On Your Marketing Activities

First, we want to thank everybody who sent us comments regarding our new blog. Almost 100% agreed on being challenged with finding new ways of reaching customers and clients. And almost all asked about how to find out, if they are still in the old Marketing world. That is why we decided to give you a reality check this week. You are still in the old mindset, if you believe the following:

- Marketing means advertising
- Advertising needs to reach out to the masses
- Advertising relies on interrupting people to get them to pay attention to a message
- Advertising is only one-way: company-to-consumer
- Advertising is about selling products
- Advertising is based on campaigns that have a limited life
- Creativity is the most important component to advertising
- Advertising and PR are separate disciplines run by different people with separate goals,
strategies, and measurement criteria – and they usually do not talk much to each other.

We all know that none of that is true anymore. The Web has transformed the rules. Please check, if you are (already) on the new track of reaching your customers and clients:

- Marketing is more than advertising
- Public Relations is for more than just a mainstream media audience
- You are what you publish
- Be authentic and avoid to spin
- Let people participate in your product, services etc.
- Deliver content at just the precise moment your audience needs it
- Reach vast numbers of underserved audiences via Web
- Marketing is about your company winning business, not about your agency winning awards
- You drive your customer into the purchasing process with great online content
- Blogs, podcasts, e-books, news releases and other forms of online content let you communicate directly with buyers in a
form they appreciate

In an offline world, marketing and Public Relations are still separate departments with different people and different skill sets, but this is not the case on the Web. The lines between marketing and PR have blurred. It really does not matter, if a customer's first exposure to your product or service is a hit on the Web site, or a news release your organization sent, or a magazine article, or a post on your blog. Great content in all forms helps buyers see you, because content drives action.

Thursday, July 10, 2008

Mr. Meyer, Don't be Afraid of Your Customer

As Marketing and PR Consultants we have been coming across some very interesting 'species' of clients lately (we will not mention real names): the Uncoachables of the 21st Century. They just keep being resistant against any kind of new client/consumer approaches. They stick to traditional print ads and direct mail campaigns and choose to ignore the new media: the internet with all its possibilities. We wonder sometimes: is it just lack of knowledge or real fear? 'Uncoachables of the 21st Century' come in many forms: as managers, executives, small and big business owners, men and women, young or on a senior level etc. They often hide behind ignorance, arrogance or even an optimism, which usually crosses the line to denial. But they have one thing in common: they fear their customer(s).

Yes, the new Marketing and PR world is fast, and yes, we all know it is not for everybody (yet). Most people don’t like running fast in business: they feel more comfortable if there are lots of meetings, committees, excel-sheets to hide in or behind. We admit, it can be quite scary to drive in that new, sometimes rough Marketing and PR lane without many rules or regulations. Customers could actually express in very clear and open words, that the service or the product ‘sucks’. Uuups, that hurts. But it teaches everyone a few lessons: to do better and to listen to customers directly to find out what they want. Forget anonymous research statistics for a few moments – everyone needs them, but they are not everything. Prepare for the direct communication with your buyers via internet and have fun!

Let's assume we had a client the other day, let's call him 'Klaus Meyer', whose marketing department said that the company needs to spend at least $40.000 to do a professional video to reach out to new customers. And the PR manager suggested to hire a PR agency for $ 15.000 a month to get stories in the national papers. These may be good ideas (well 10 years ago), but we strongly recommended to Mr. Meyer not only check on the credibility of his people, but also to look at his budget and his target groups again. Why not create a 1-minute-fun-video for a few hundred bucks, put it on YouTube and tell the world all about the product, or – even better – himself and his team? Why not put an article on a blog, which reaches not only the media, but also his customers? Well, fortunately, Mr. Meyer belongs to the new generation of coachable people. He wants to get to know his customers. He is now checking out the blogging and YouTube arena; and he is re-evaluating his marketing and PR approaches. Good for him: he will save tons of money and he will finally be able to understand his customers. We will let you know in the next few weeks how Klaus Meyer does.

Please let us know what your experience is with Marketing and PR in the internet world. We are also excited to hear from other Marketing and PR consultants: tell us your experience with your clients. And you can give advise to Klaus Meyer - he likes to learn from the whole world!