A Mean Year for Ads and Their Agencies A Mean Year for Ads and Their Agencies By Suzanne VranicaBy Suzanne Vranica

Presented by:Presented by:Big MacroBig Macro

Sam Bastian,Sarah Bachwitz, Adam Bollinger, and Sam Bastian,Sarah Bachwitz, Adam Bollinger, and Alyssa AhlersAlyssa Ahlers

•In 2008 ads were one of the most important tools for president-elect Barack Obama in winning the election.

•They were also key in promoting the Olympic Games, but despite these two events ad spending in The U.S. decreased by

3.8% this year as our economy continues to struggle.

Auto Industry SuffersAuto Industry Suffers

•General Motors Corp. has asked its agencies to slash fees by as much as 20% this year and next.

• The whole Auto industry expects ad spending to decrease another 6.2%, to $161.8 billion, is forecast for 2009.

LayoffsLayoffsAd declines has caused some big ad agencies to layoff some of there work force. Omnicom Group

this year cut loose almost 5% of its 70,000 employees, and more pink slips are expected at other

agencies early in 2009.

•Ad companies continued to buy digital shops and other types of marketing concerns to help offset

the slowdown. WPP paid £1.1 billion ($1.95 billion) for Taylor Nelson Sofres, a market research firm.

•Marketers also continued to shift resources to the Web, as brands such as Gatorade relied on viral

videos to grab attention.

•Still, the Internet won't offer a safe harbor. WPP PLC predicts online ad spending will increase just

5% in 2009, down from an estimated 16% increase in 2008.

•The ad industry never stopped trying to surprise

Best Ads of 2008

Worst Ads of 2008Worst Ads of 2008• Microsoft

– Featured Bill Gates and Jerry Seinfeld shoe shopping– Panned by viewers and ad experts

• Toyota– 0% financing ad using 1983 song “Saved by Zero” by Fixx– People were sick of seeing ad– Facebook group created against ad

• Salesgenie.com – Panda couple with Asian accents who are saved by a psychic– White boss angry with an Indian salesman– Apologized for ads and pulled them off air

• AIG– Used slogan “The Strength to Be There” featuring kids being reassured by

parents that everything will be ok– Company had to receive government bailout money

• Pfizer– Robert Jarvik says he worries about cholesterol even though he is a doctor– House Committee on Energy and Commerce complained that Jarvik isn’t a

practicing physician – Pulled ad

20082008Which Ad is the Best? Which Ad is the Worst?Which Ad is the Best? Which Ad is the Worst?

We feel…We feel…

http://www.youtube.com/watch?v=X8YG6cL3ngY

We feel…We feel…

http://www.youtube.com/watch?v=ImyK29QLs_A

Why?Why?-Banner advertisements are typically

ignored.

-Click-through rates were three times the industry average.

-Even received awards!

Why?Why?-Nothing to do with computers.

-No mention of Microsoft or Windows other than “are they ever going to come out with something that will make our computers

moist and chewy like cake so we can just eat them while working?”

Any Questions?Any Questions?