PepsiCo Exec Has Tough Words for Agencies | Special: ANA Annual Meeting 2015 - Advertising Age
Ad agency models are breaking. Pre-roll ads are useless. Measurement models are outdated. The ad industry lacks diversity. And the phrase digital marketing should be dumped.
Those statements were among the declarations made Wednesday by PepsiCo exec Brad Jakeman in a fiery, truth-telling presentation at the Association of National Advertising’s annual “Masters of Marketing” conference in Orlando, Fla.
Mr. Jakeman — who is president of PepsiCo’s global beverage group — went so far as to suggest that even the phrase “advertising” should go by the wayside. He did so before 2,700 marketing and agency professionals at an event put on by an association that has the word advertising in its name. “Can we stop using the term advertising, which is based on this model of polluting [content],” he said.
“My particular peeve is pre-roll. I hate it,” he added. “What is even worse is that I know the people who are making it know that I’m going to hate it. Why do I know that? Because they tell me how long I am going to have to endure it — 30 seconds, 20 seconds, 15 seconds. You only have to watch this crap for another 10 seconds and then you are going to get to the content that you really wanted to see. That is a model of polluting content that is not sustainable.”
But Mr. Jakeman, whose talk was called “Designing for Disruption,” saved his toughest words for ad agencies. “The agency model that I grew up with largely has not changed today,” he said, noting that he has been in the ad industry for 25 years. “Yet agency CEOs are sitting there watching retainers disappear … they are looking at clients being way more promiscuous with their agencies than they ever have.”
Continuing the rant, he said that the “global alignment agency is a dinosaur concept” and he questioned the level of innovation. “I am really worried that this model is not going to bend — it’s going to break if we don’t really think about how to innovate,” he said.
Mr. Jakeman also ripped the industry’s lack of diversity. “I am sick and tired as a client of sitting in agency meetings with a whole bunch of white straight males talking to me about how we are going to sell our brands that are bought 85% by women,” he said. “Innovation and disruption does not come from homogeneous groups of people.”