08 Jul The Advertising & Marketing Value Chain
In the ever-evolving world of advertising and marketing, the path from concept to consumer is a complex and dynamic journey.
This journey, often referred to as the advertising and marketing value chain, involves a multitude of specialized roles and entities working in concert to create compelling campaigns that drive brand success. At the core of this process are advertising agencies and commercial production houses, each playing a distinct yet interconnected role.
Let’s explore how these entities collaborate and the factors brands consider when choosing their partners.
Table of Contents
- The Role of Advertising Agencies
- Case Study: Ogilvy and Dove’s “Real Beauty” Campaign (2004)
- The Role of Commercial Production Houses
- Case Study: RSA Films and Nike’s “Write the Future” Campaign (2010)
- The Rise of Full-Service Agencies
- Case Study: Dentsu and the Toyota “Start Your Impossible” Campaign (2018)
- Conclusion
The Role of Advertising Agencies
Advertising agencies are the strategic masterminds of the marketing value chain. They are responsible for developing overall marketing strategies and campaign plans for their clients. These agencies offer a wide array of services, including:
- Strategy and Planning
Crafting comprehensive marketing strategies that align with a brand’s objectives. - Creative Development
Developing concepts, scripts, and storyboards for ads. - Media Buying
Purchasing media space across various platforms to ensure maximum reach. - Campaign Management
Overseeing the execution of campaigns, tracking performance, and optimizing for better results.
Examples of Advertising Agencies; all Grand Prix Winners at Cannes Lion 2024:
Case Study: Ogilvy and Dove’s “Real Beauty” Campaign (2004)
Ogilvy’s work with Dove on the “Real Beauty” campaign is a prime example of their strategic and creative capabilities. Launched in 2004, this campaign aimed to challenge conventional beauty standards and promote body positivity.
Ogilvy conducted extensive research, revealing that only 2% of women considered themselves beautiful. They used this insight to create a powerful campaign featuring real women of diverse shapes, sizes, and ethnicities, rather than professional models.
The campaign included print ads, commercials, and a viral video titled “Evolution“, which showcased the transformation of a woman through makeup and Photoshop.
This video highlighted the unrealistic standards of beauty portrayed in the media. The campaign resonated globally, sparking conversations about beauty standards and significantly boosting Dove’s brand image and sales.
It won numerous awards, including two Cannes Lions Grand Prix, and is often cited as one of the most successful and influential ad campaigns of the 21st century.
Brands rely on ad agencies to provide the vision and direction necessary for successful campaigns. When choosing an ad agency, brands consider several factors:
- Brands seek agencies with a proven track record in their specific industry.
- A portfolio of innovative and successful campaigns.
- The ability to develop comprehensive marketing strategies.
- Positive testimonials and industry reputation.
- Alignment in values and work ethics.
- Evidence of delivering measurable outcomes.
- Range of services that meet the brand’s needs.
- Skilled and knowledgeable professionals.
- Transparent pricing and value for money.
- Use of the latest tools and innovative approaches.
- Assurance of dedicated time and resources.
- Evaluation through direct presentations and proposals.
The Role of Commercial Production Houses
Once the strategy and creative direction are set, commercial production houses step in to bring these visions to life. These companies specialize in the technical and logistical aspects of producing commercials. Their responsibilities include:
- Production
Location Scouting and acquisition, Casting, Production Management, Lighting, Filming, Directing, Sound Design and Editing commercials. - Technical Expertise
Providing technical resources, including Equipment, Crews and Unit Management. - Execution
Transforming creative concepts into finished commercials and delivering them on schedule.
Examples of Academy Award and Cannes Lions Award Winning International Production Companies:
Case Study: RSA Films and Nike’s “Write the Future” Campaign (2010)
RSA Films, founded by renowned director Ridley Scott, has been involved in producing some of the most memorable commercials. One notable example is their work on Nike’s “Write the Future” campaign for the 2010 FIFA World Cup.
Directed by Alejandro González Iñárritu (“The Revenant”, “Birdman”, “Biutiful”), conceptualized by Ad Agency, Wieden+Kennedy, the commercial featured global football stars like Cristiano Ronaldo and Wayne Rooney, showcasing the dramatic impact of their actions on the pitch.
The ad captured the essence of the sport’s unpredictability and the players’ influence on their futures. It combined high-quality cinematography, compelling storytelling, and dynamic action sequences, making it a standout piece of advertising.
The campaign was a massive success, garnering over 7.8 million views on YouTube within a week of its release and winning the Grand Prix at the Cannes Lions International Festival of Creativity.
When ad agencies decide which commercial production company to collaborate with, they consider:
- The production company’s experience in specific types of commercials.
- Alignment with the campaign’s creative vision.
- Strong track record of delivering high-quality work.
- Ability to deliver within financial constraints.
- Adequate equipment and technical expertise.
- Capacity to meet deadlines.
- Trust and familiarity from past collaborations.
- Location & Logistics: Practical considerations for the shoot.
- Ability to bring unique and innovative ideas to the table.
The Rise of Full-Service Agencies
To streamline the advertising and marketing value chain, many companies now offer both advertising and production services under one roof. These full-service agencies provide a comprehensive range of services, covering everything from strategy and creative development to production and media buying.
The benefits of using a full-service agency include:
- Seamless Coordination
Improved communication and coordination between different teams. - Consistency
Unified vision and consistent messaging. - Efficiency
Faster turnaround times and potentially lower costs.
Examples of Top Global Full-Service Advertising Agencies:
Case Study: Dentsu and the Toyota “Start Your Impossible” Campaign (2018)
Dentsu’s work on Toyota’s “Start Your Impossible” campaign is a testament to their full-service capabilities. Launched ahead of the 2018 Winter Olympics, this global campaign aimed to highlight Toyota’s shift from an automotive company to a mobility company, focusing on the broader idea of overcoming challenges and embracing the possibilities of mobility for all.
Dentsu was involved in every stage of the campaign, from strategic planning and creative development to production and media placement.
The campaign included powerful TV commercials, digital content, social media engagement, and sponsorship activations. The central message was conveyed through inspiring stories of Olympic and Paralympic athletes who overcame significant challenges to achieve greatness.
The “Start Your Impossible” campaign not only reinforced Toyota’s brand values but also connected deeply with a global audience, enhancing brand perception and engagement. It was a comprehensive demonstration of how Dentsu’s integrated services can create impactful and cohesive campaigns.
Top full-service agencies such as Publicis Groupe, McCann Worldgroup, and Dentsu exemplify this integrated approach, offering end-to-end solutions that drive brand success.
Conclusion
The advertising and marketing value chain is a collaborative and multifaceted process that requires the expertise of both advertising agencies and commercial production houses. Brands must carefully select their partners based on a variety of factors to ensure successful campaigns.
By understanding the distinct roles and interdependencies within this value chain, brands can better navigate the complex landscape of advertising and marketing, ultimately achieving their business objectives with greater efficiency and impact.