{"id":3129,"date":"2011-06-14T23:01:25","date_gmt":"2011-06-14T23:01:25","guid":{"rendered":"http:\/\/www.thesocialcmo.com\/blog\/?p=3129"},"modified":"2011-06-14T23:01:25","modified_gmt":"2011-06-14T23:01:25","slug":"the-fifth-model-%e2%80%9ccrowdsourcing%e2%80%9d-hits-madison-avenue","status":"publish","type":"post","link":"https:\/\/www.thesocialcmo.com\/blog\/2011\/06\/the-fifth-model-%e2%80%9ccrowdsourcing%e2%80%9d-hits-madison-avenue\/","title":{"rendered":"The Fifth Model \u201cCrowdsourcing\u201d Hits Madison Avenue"},"content":{"rendered":"

The Rise of Crowdsourcing <\/strong><\/p>\n

\"\"In the era of seismic change now occurring on Madison Avenue, ad agencies are starting to strap on an extra seat belt.\u00a0 There is a lot of talk about revamping traditional ad agency models, e.g., digital, hybrid, tradigital or simply, creation of the \u201cnew agency\u201d.\u00a0 Traditional agencies are pushed to their limits by the explosion of digital and social media marketing projects as clients demand greater expertise.\u00a0 Agency compensation models fortified with high overhead are under pressure since it isn\u2019t easy for a large agency to monetize the creation of a Twitter background page or Facebook fan page.\u00a0 This leads us to the need for a compensation model that reflects activity-based pricing delivered more efficiently. <\/em> For new ad agency start-ups, the answer may be what we call the \u201cFifth Model\u201d.\u00a0 This is another step in the long evolution of ad agencies adapting to changing market conditions for well over 100 years.<\/p>\n

The \u201cFifth Model\u201d Recognizes the Value of Social Media Marketing <\/strong><\/p>\n

Marketers can connect with customers using social media more efficiently vs. outbound marketing tactics.\u00a0 For example, downloading a digital coupon for a free taco may not only cure one\u2019s short term hunger but, for the marketer, it is a viable reward for loyal customers and drives traffic at a price far less than traditional ads. Even when the value of the free taco fades, a smart marketer now understands the importance of engaging customers.\u00a0 Armed with a social media strategy, many brands now understand the drill: listen, engage, feedback, analysis = win. <\/strong><\/p>\n

What is Crowdsourcing?<\/strong><\/p>\n

Enter a relatively new concept that will make The Fifth Model a reality.\u00a0 It is appropriate to use Wikipedia to define the term Crowdsourcing,<\/strong><\/a> since thousands of Wikipedia users created the tool which many say is accurate as any encyclopedia in existence.\u00a0 Crowdsourcing is \u201c<\/strong>the act of\u00a0outsourcing\u00a0tasks, traditionally performed by an employee or\u00a0contractor, to an undefined, large group of people or community (a “crowd”), through an open call.\u201d <\/strong>Jeff Howe, one of the first authors to employ the term, makes an important distinction, adding: \u00a0\u201c \u2026 it [crowdsourcing] gathers those who are most fit to perform tasks, solve complex problems and contribute with the most relevant and fresh ideas.\u201d <\/a> Make no mistake; this process is having a profound impact on ad agencies, marketers, and brand management.\u00a0 There is a decided shift toward finding \u201cthose who are most fit\u201d while working to achieve \u201cquality\u201d results,\u00a0 A critical tool to help guide the crowd\u2019s creative development is the creative brief. <\/strong>In a recent blog, \u201cInnovation Gone Wild on Madison Avenue\u201d<\/a>, Blue Focus Marketing<\/a> co-founder Cheryl Burgess<\/a> (@ckburgess<\/a>) said: \u201cthe creative brief is the engine that drives development of the creative product.\u00a0Without a focused creative brief, creative efforts would be off-strategy.\u201d<\/p>\n

 <\/p>\n

Perspectives on Crowdsourcing from Several Industry Executives<\/strong><\/p>\n

Epirot Ludvik Nekaj<\/strong><\/a>, Founder<\/strong>, Ludvik + Partners<\/strong><\/a> (U.S.)<\/strong><\/p>\n

\u201cCrowdsourcing permits our agency to better understand the landscape of social media, new technologies\/platforms, and how to quickly and effectively generate relevant content and fresh ideas to energize our\u00a0clients’ brands.”<\/p>\n

Philip Letts, CEO<\/strong><\/a>, the <\/strong>blur Group<\/strong><\/a> (U.K)<\/strong><\/p>\n

It’s important to realize that Crowdsourcing is a technique. Used correctly, it is a very valuable technique which can give a different perspective on many issues which will enrich an offering. But as a technique, it needs proper management and implementation and consideration as to how the results will be used.”<\/p>\n

Simon Mainwaring<\/strong><\/a>, Author of <\/strong>We First<\/strong><\/a>, and Founder of <\/strong>We First<\/strong><\/a>, brand consulting firm (U.S.)<\/strong><\/p>\n

\u201cCrowdsourcing works because consumers are sincerely interested in the creative advantages and potential of collaborating with the brands they admire.\u201d<\/p>\n

Peter H. LaMotte<\/strong><\/a>, President, <\/strong>GeniusRocket<\/strong><\/a> (U.S.)<\/strong><\/p>\n

\u201cThe first generation of crowdsourcing was focused too much on the size of the crowd. Platforms were more concerned about \u201cwhose is bigger\u201d more than \u201cwhose is smarter.\u201d This second generation of crowdsourcing is focusing on quality, the quality of the crowd and the quality of content they produce.\u201d<\/p>\n

John Andrews<\/strong><\/a>, Founder & CEO, <\/strong>Collective Bias<\/strong><\/a> (U.S.)<\/strong><\/p>\n

\u201cCrowdsourcing is adding the voice of the consumer to the brand management process.\u201d<\/p>\n

The Fifth Model\u00a0\u00a0 –\u00a0 \u00a0An \u201cOpen Call\u201d for Greater Efficiencies<\/strong><\/p>\n

The four primary compensation models in play today don\u2019t mesh with client\u2019 demands for increased digital and social media marketing projects:<\/p>\n

1) Media Commission\u00a0 2) Billable Hours 3) Flat Rate\/Fixed Retainer 4) Performance-Based<\/p>\n

Enter an emerging model:\u00a0 The Fifth Model which permits marketers (and ad agencies) to gain access to qualified creative professionals around the world.\u00a0 These pros are not part of agency overhead; do not require health benefits nor an office.\u00a0 It is the availability of quality; creative talent pools that Blue Focus Marketing<\/a> believes will fuel the growth of the Fifth Model \u2013 \u201cCrowdsourcing\u201d. <\/em> So, to Madison Avenue, it is time to embrace the possibilities including far greater use of crowdsourcing to handle both existing clients and new business prospects.\u00a0 For new agencies, it\u2019s a brand new world where greater efficiencies can be built into the process upfront.\u00a0 To marketers, this is a pretty exciting time to join the \u201copen call\u201d and realize not only efficiencies but exposure to a larger pool of fresh ideas.<\/p>\n

A final thought \u2026..as proof of our endorsement of the power of \u201cquality\u201d crowdsourcing, this week, Blue Focus Marketing announces that we are the first U.S.-based Affiliate for the blur Group\u2019s Creative Services Exchange.\u00a0 Join the crowd<\/a> at Blue Focus Marketing.<\/p>\n

Mark Burgess<\/p>\n

 <\/p>\n

Mark Burgess<\/a> (@mnburgess<\/a>)<\/p>\n

Mark Burgess is Co-founder & Managing Partner at Blue Focus Marketing<\/a>, a social brand consultancy and a top 30 marketing professor on Twitter, as published by SMM Magazine<\/a>.\u00a0 Mark is an ex-McCann-Erickson advertising executive who was responsible for managing the L\u2019Oreal and Sears accounts.\u00a0 Blue Focus Marketing is leading the charge to help educate businesses on the value of social media marketing by providing customized social media \u00a0workshops.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The Rise of Crowdsourcing In the era of seismic change now occurring on Madison Avenue, ad agencies are starting to strap on an extra seat belt.\u00a0 There is a lot of talk about revamping traditional ad agency models, e.g., digital, hybrid, tradigital or simply, creation of the \u201cnew agency\u201d.\u00a0 Traditional agencies are pushed to their … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[137,721],"tags":[42,893,1311,1312,278,1313],"class_list":["post-3129","post","type-post","status-publish","format-standard","hentry","category-all-posts","category-guest","tag-advertising","tag-agencies","tag-blue-focus","tag-cheryl-burgess","tag-crowdsourcing","tag-mark-burgess"],"_links":{"self":[{"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/posts\/3129","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/comments?post=3129"}],"version-history":[{"count":5,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/posts\/3129\/revisions"}],"predecessor-version":[{"id":3134,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/posts\/3129\/revisions\/3134"}],"wp:attachment":[{"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/media?parent=3129"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/categories?post=3129"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.thesocialcmo.com\/blog\/wp-json\/wp\/v2\/tags?post=3129"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}