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Madison Avenue Manslaughter: An Inside View of Fee-Cutting Clients, Profit-Hungry Owners and Declining Ad AgenciesBy Michael Farmer
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Advertising agencies are caught between fee-cutting clients and profit-hungry owners. In the meantime, their creative workloads are growing, driven by increased TV, digital and social advertising. How do agencies generate profit margins under these circumstances? Through downsizing, salary freezes and 'juniorizing.' Agencies are disinvesting in capabilities at a time when their clients' marketing challenges have never been greater. No wonder their clients are beefing up their internal capabilities and changing agencies at an accelerated rate!
This is Madison Avenue Manslaughter, documented in detail by Michael Farmer, who has been working in the industry for the past 25 years. Farmer, who was formerly a Director of Bain & Company, provides a gripping analysis of advertising agencies and their deteriorating situation. He describes the key trends that have weakened agencies during recent years -- the shift from commissions to fees, brand globalization, the rise of holding companies, client obsession with shareholder value, the digital and Internet revolutions -- and outlines the steps that senior agency executives need to take to restore health to their organizations and improved results to their clients.
This book is a first of its kind -- a detailed examination of ad agencies as businesses: their cultures, organizations, management philosophies and strategic choices -- providing an unforgettable inside look at the Mad Men's declining world.
Winner of the Gold Medal for Marketing books, 2016 Axiom Awards
- Sales Rank: #101818 in Books
- Published on: 2015-09-15
- Original language: English
- Number of items: 1
- Dimensions: 9.25" h x .70" w x 6.13" l, .0 pounds
- Binding: Hardcover
- 200 pages
Review
Jon Bond, CEO Tomorro; former CEO, Big Fuel; co-founder, Kirshenbaum Bond & Partners: "It isn't manslaughter, it's industry suicide in slow motion, one FTE at a time."
Gary Lee, Global Chief Financial Officer, McCann Worldgroup: “It’s more like Madison Avenue Massacre, and the bullets are falling prices, incentives that do not incentivize, mystery benchmarks and scope theft. We need strong and fair economic partnerships to fund creative and strategic brilliance. Michael Farmer’s exposé should ignite the debate. Bravo!”
Deborah Wahl, Chief Marketing Officer, McDonald's USA: “A great and engrossing read. This book is as relevant for advertisers as it is for agencies. After years of CMO tenure declining faster than agency turnover, the work of the CMO has had to refocus on delivering brand growth and profitability. This book highlights how our most valuable partners can refocus too and develop a more productive partnership to master the challenges of the VUCA world in which we operate.”
Richard Roth, President and Founder, Roth Observatory: "Finally someone has written a book about everything I believe in. Farmer identifies the causes and dynamics of the industry's issues and woes. He understands the economics, the behaviors and the causes of an inevitable talent drain. Solutions are scarce and they require a keen understanding of the business. Farmer has this understanding."
About the Author
Prior to founding Farmer & Company in 1992, Michael Farmer was a strategy consultant with The Boston Consulting Group and a Director of Bain & Company. He headed Bain’s Munich, Paris and London offices during Bain’s decade of European expansion in the 1980s. Michael lived and worked in Brazil, Switzerland, Turkey, Germany, France and UK for more than 20 years. He was associate dean at the Harvard School of Public Health and Professor of Naval Science at Iowa State University.
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