Preparing the talk was interesting as it involved a review of all of the trends we had noticed in the past 2 – 3 years leading us to the current market. But more importantly, it was considering where the future trends are heading, especially overseas in some of the more technically advanced markets, particularly the USA.
A couple of weeks ago I was reading an article about why Apple decided not to enter the ‘Netbook’ market; you know – those tiny, ultra portable and inexpensive laptops that threatened to take over the personal computing universe, but ultimately disappeared before they barely got started once the iPad and its like entered the market.
It turns out that Apple had already committed to the iPad, but more pertinently, Apple prefers profit over revenue. Through fierce competition, the profit margin on netbooks became so low, that Apple would had to have played the market share game along with every other manufacturer.
And that is something Apple doesn’t do. They are a company that would rather make $10bn from 10% of the market, than make $1bn from having 90% of the market.
So that got me thinking; why do so many agencies prefer revenue over profits?
Advertisers, especially retail advertisers, have had in-house advertising before John Wannamaker was a boy. Usually these in-house facilities are company owned but occasionally they are implanted into the organisation from external suppliers.
The concept of the in-house advertising production facility has become more attractive to a broader range of advertisers in recent years because of:
Low cost production technology such as computers, ringers and software
Increased speed to market compared to most external suppliers such as agencies
Diversification of requirements within marketing and across the organisation
You see, with the fragmentation of media and the move to a more content driven marketing strategy, advertisers are looking for more cost effective and time efficient ways to meet their marketing communication needs.
WFA – Global Marketer Week 2013
March 4 – 8, Brussels, Belgium
The event will bring together marketing professionals from the global marketing industry and the world’s biggest brands.
TrinityP3 are Strategic Partners of the WFA and Gold Sponsors of this event. For more information: click here.
AMSRO – Leader’s Forum 2013March 21 – 22, Byron Bay, Queensland
Senior management and leading independents discuss the major challenges and opportunities facing the business of market and social research and help shape the industry’s future.
TrinityP3’s Nathan Hodges will speak Day 2; “Boom or Bust – Leadership Strategies for a Changing Workplace.” For more information: click here.