Who murdered Madison Avenue?

How did ad agency economics become so challenging? Fee-cutting and low growth are part of the equation, but the roots of the issue go back decades. Ad industry analyst and author Michael Farmer joins WARC's David Tiltman to discuss his new book 'Madison Avenue Revisited' and offer his take on 30+ years of change to advertising business models, including the impact of dysfunctional client-agency relationships, increased creative workloads and AI.

Guests:
Michael Farmer, Chairman and CEO, Farmer&Co; Professor of Branding and Integrated Communications at The City College of New York
David Tiltman, SVP - Content, WARC

Chapters:
[00:00] Introduction: Michael Farmer joins The WARC Podcast
[06:49] From 'Madison Avenue Manslaughter' to 'Madison Avenue Revisited'
[11:25] How ad agency workloads doubled while fees halved
[18:29] Why big advertisers are underperforming GDP
[23:44] Short-termism and the failure to brief for brand growth
[27:51] The key factors undermining advertising economics
[30:11] Artificial intelligence threatens advertising agencies
[32:28] 'Infinite creative' doesn’t equal brand growth
[35:18] Using AI to fund strategy and reinvesting in senior talent
[37:01] How hold-cos, commissions, and cheap CPMs undermined creative value
[40:29] Why do CFOs block long-term marketing investment?
[41:02] How AI can optimise the marketing mix for growth

For 40 years, WARC has been providing the marketing industry with rigorous, unbiased evidence and expert effectiveness guidance. The WARC Podcast publishes a new episode every Tuesday and Thursday.

Subscribe to The WARC Podcast here: https://www.warc.com/en/warc-podcasts

Sign up to daily WARC News for free: https://www.warc.com/en/latest

Book a demo: https://www.warc.com/en/subscribe

Det här avsnittet är hämtat från ett öppet RSS-flöde och publiceras inte av Podme. Det kan innehålla reklam.

Avsnitt(487)

Is AI a strategist's friend or foe?

Ad strategists are navigating two realities on AI: its benefit as a research tool, and the fear it may take their jobs. In the first of WARC's Future of Strategy series, Nikita Walia (U.N.N.A.M.E.D) a...

6 Okt 37min

The hidden powers of out of home media

New research looks into unspoken qualities that different out-of-home formats convey, and the impact this can have on campaign effectiveness. WPP Media's Richard Kirk and Ocean Outdoor's Steve Bernard...

1 Okt 37min

The 'vanilla imperative': Why American ads play it so safe

The US produces some of the most careful, literal commercials in the world. Is this 'vanilla' approach a creative failure? Or is it a structural necessity? Shann Biglione, author of 'The Vanilla Imper...

29 Sep 32min

Video: B2B marketing's secret superpower

Video campaigns are 2x more likely to grow B2B market share and 1.7x more likely to deliver stronger ROI, according to new research from LinkedIn's B2B Institute and WARC. Amazon Business's Kate Runde...

24 Sep 29min

Marketing in the K-shaped economy

2026 has been a challenging year for marketers, with constant upheaval forcing consequential decisions. Amid all this: the impact of the K shaped economy. WARC's Catherine Driscoll and Carat's Tony de...

22 Sep 30min

Bigger isn't always better for creator strategy

Brands are increasingly looking toward micro and nano creators for social cut-through. Marcus Yong, VP - Global Marketing at travel brand Klook, joins WARC's Rica Facundo to discuss how smaller creato...

17 Sep 25min

How Boots is operationalizing creative effectiveness

The gap between creative and media is closing, with large scale creative data and next-gen measurement tools combining to predict commercial outcomes, not just clicks. Boots' Peter Grant, CreativeX's ...

15 Sep 39min

The psychological 'pause' reshaping the customer journey

Failing to usher buyers from discovery to purchase in the fewest possible steps is often seen as a setback. This belief misunderstands the consumer purchase journey, according to new research. Mindsco...

10 Sep 37min