Reflections on My Next Decade in Advertising

Last year, I wrote two posts about the state of the advertising industry, and why I felt like it might be a good time to get out of it. At the time, I was moving to Google, and wondered if and when I would ever haunt the halls of an ad agency again.

It didn't take very long. I'm now back at my old agency, and as I reread those two posts this morning, I started thinking about what was right and wrong about my not-so-old take on the business. So I wanted to take the time to revisit those ideas, and sketch out why I think advertising has a bright future.

First, a note for those of you who think that advertising as a business is going to be dismantled by tech companies like Google: you are missing out on amazing opportunities to build brands and do more meaningful work because you're in love with old, unaccountable media. Right now, media supply is the constraining factor for most marketers, meaning you have to spend a lot to connect with the right people. With the improvements in targeting (which moving into the offline world as well) along with the explosion of engaging content, it will be increasingly possible to spend less in reaching your audience. With less money going into buying your reach, it leaves more to create content your audience might actually enjoy, even seek out. This should be a great thing for advertising agencies. (And if you don't believe this is possible at mass audience scale, don't believe me, believe P&G, which has already moved pretty far down this path.)

Second, a little bit of self-criticism. Last year, I wrote:

What do I mean about 'relationships before reach'? Simply put, that the number of people who saw your ad is no longer the standard for evaluating success. A campaign should be winning over converts, true believers who will help advocate for your brand. If you have a great product, this is very doable. Just create the story of why your product can improve your customers' lives, put the product in their hands, and watch the fireworks. (Easier said than done, I know.)

This now strikes me as a bit of digital magical thinking (and there's a lot of that out there) that isn't supported by the way we actually live. For example, I'm a big fan of Narragansett Beer. I follow them on Facebook, read their blog, and ask for my wife to go out-of-state to buy me some as a Christmas present. I am as much of an advocate as they can reasonably hope for, and yet as far as I can tell I haven't influenced anyone to go out and buy the stuff. Now, I'm sure they have other advocates who do drive sales for them, but activating your true believers is not often going to be enough to build your brand in a competitive marketplace unless your product is truly extraordinary. Like, "This pill made me grow five inches, cleared my skin, boosted my IQ and healed my broken leg," extraordinary. Otherwise, you're still going to want to get your message out their to a lot of people who have never heard of you before, which means reach still matters. A lot.

So what is the next decade going to hold? Well, last year I wrote: "What is this illness [in the advertising industry]? In short, it is a business model that is predicated on gaining efficiencies through scale, when that scale is likely to prove inefficient for the indefinite future."Advertising folks have made a lot of money because they could navigate the complexities of the 20th century communications world and get a message out there. As I wrote then, there is going to be pain as the models built up over decades collapse. But we can now reach consumers more efficiently, though the path to do so is often even more complex than the old model. So, I anticipate spending the next chunk of my career answering two questions:

1. How do we reach the right people at the moments when they're receptive to what we have to say?
2. How do we delight them once they've given us their attention?

A few people have started to figure this out. But there's lots of room for innovation, and the only sure way to fail at it is not to try, while the path to success probably involves failing fast. (By the way, I predict "fail fast" will become the new "think outside the box" in the next few years.)

My bedrock belief is that audience attention has replaced media spend as the limiting factor on advertising's success. So our starting question has to evolve from, "What do I want to say and where can I tell it to my audience?" to, "What does my audience care about and how can my brand connect with that?" That shifted focus will cause a cascade of other changes in the business, but ultimately make advertising more enjoyable to make and to consume.

But I'm still thinking all this through, people, so feel free to try and change my mind. Where is advertising going, and how do we get there?

On Meaningful Work

Next week, I'm leaving the best company in the country to work for. I didn't quite make it a year. Frankly, though there were plenty of reasons, the simplest reason why is that I wasn't happy at Google. Sure, the food is great, the people are nice and smart, and there are plenty of cool perks. But none of that is sufficient if you don't find the work you're doing engaging, and you think another job can offer that.


In the course of researching this post, I came upon the following anecdote:

Three men are found smashing boulders with iron hammers.  When asked what they are doing, the first man says, "Breaking big rocks into little rocks." The second man says, "Feeding my family." The third man says, "Building a cathedral."

Most of the time, I couldn't shake the feeling I was just smashing rocks at Google, and I tried to feel better by telling myself I was doing it to provide for my loved ones. But I never felt I was building a cathedral here, or even a house. In some ways, Google's cathedral has already been built: their search engine is one of the greatest gifts to the modern world imaginable. And I know the leadership envisions building other ones just as impressive. It is likely that the failing to see past the rocks is mine.


In the same article where I found that story, the author, a psychologist who studies what makes work meaningful, outlines three principles:

First, the work we do must make sense; we must know what's being asked of us and be able to identify the personal or organizational resources we need to do our job.  Second, the work we do must have a point; we must be able to see how the little tasks we engage in build, brick-by-brick if you will, into an important part of the purpose of our company. Finally, the work that we do must benefit some greater good; we must be able to see how our toil helps others, whether that's saving the planet, saving a life, or making our co-workers' jobs easier so that they can go home and really be available for their families and friends.

 A lot of the meaning in work, then, has to come from within. If I can see myself contributing to the welfare of my coworkers, it might matter less that I am bored by the tasks I need to complete during the day. But it would be wise if more companies thought through how they can make a job sensible, purposeful and beneficial. Other researchers have looked at the link between a sense of meaning at work and job performance, and found that productivity rises significantly when employees are engaged in work they find meaningful. And yet most companies look to "sugar high" motivators like perks and bonuses to provide lasting motivation: 

When we asked 669 managers from companies around the world to rank five employee motivators in terms of importance, they ranked “supporting progress” dead last. Fully 95 percent of these managers failed to recognize that progress in meaningful work is the primary motivator, well ahead of traditional incentives like raises and bonuses.

If I worked in HR, I would make it my business to figure out what meaning my best employees found in their work, and try to instill that sense of purpose in as many other people as possible.


So, the last question: why do I think I'll find more meaning in my new role (returning to the advertising agency I left for Google) than I did in this one? Well, I'm going to take my direction from this amazing Clayton Christensen article and use the uncertainty and change in advertising as a chance both to share what I've learned and to learn from others. Here's Christensen's advice:

Think about the metric by which your life will be judged, and make a resolution to live every day so that in the end, your life will be judged a success.

I think my life will be judged, by myself and those I care about most, by how I grew as a person, what I built, and who I was able to help. I'm going to a place where I think I can accomplish a lot in all three areas. I can't wait to dive back in.


So my question for you: what do you think makes work (and life) meaningful?

The Collapse of Politics

We like to imagine that we are capable of reason, of thoughtful, fact-based decision-making. I in particular flatter myself that I am a logical man. But I think the state of our politics is yet another bit of proof that we are in many ways only semi-rational beings, crippled by our own unexamined first principles and our loyalty towards our intellectual teams.

The latest bit of evidence I have collected for this theory came last Tuesday, when I was able to attend a Q&A given at Google by New York's junior senator, Kirsten Gillibrand. This was not exactly a hostile crowd, and I had the sense the senator was somewhat less guarded than she might have been, say, at a town hall meeting upstate. For example, at one point she said (this is not an exact quote, mind you), I think that if we had 51% women in congress, we wouldn't be in Afghanistan or Iraq, wouldn't be in the economic mess we're in. (This reminded me of an old Robin Williams joke: If there was a female president there'd never be any wars, just every 28 days some severe negotiations.") But the point she was trying to make was that women tend to be much more willing to work for agreement then the men of Congress (try not to imagine that calendar...), who are more dogmatic.

So I spent the rest of her talk trying to listen for a single thing she said that showed the least willingness to find a compromise with Republicans, and didn't come away with a single thing. Not, I don't think, because she wouldn't be willing to compromise, but because she's not even really thinking about trying to solve the same problems that Republicans are.

What are the problems Republicans are interested in solving? Right now, the debt, the encroachment of government into daily life, and the challenges facing small business. What are the problems Democrats are interested in solving? Improved social and economic equality, more investment in government services (infrastructure, education, etc), and protecting entitlement programs. Not only are these a completely different list of challenges, but the solutions each side offers will exacerbate the challenges the other side is trying to solve.

Recently, Texas governor and Republican presidential candidate Rick Perry said his goal is to make Washington as inconsequential in our lives as he can. As columnist Jeff Jacoby pointed out in his recent columns, "To a Democrat steeped in the big-government tradition of the New Deal and the Great Society, there could hardly be a greater heresy." That last word is perfect, as we are not talking about political opinion but fundamental belief. Making Washington inconsequential would violate the first principles Democrats bring to politics, just as the relentless growth of government in the last few years, and the corresponding debt growth, is impossible for many Republicans to square with their beliefs about what kind of country this should be.

Even at 31, I feel to young to say definitively if this clash of first principles is that different than the political battles that came before. Certainly the Sixties must have felt equally tumultuous, although that clash seemed more generational than purely political. The only time in American history that seems comparable are the decades before the Civil War, where it became increasingly clear that our leaders had no common ground to fall back upon. The good news is that we're highly unlikely to pick up arms over current political arguments. But it is not inconceivable that at some point, the two sides of this unending debate might, like an unhappy couple, decide that their differences are irreconcilable, and find a way to end this union.