Dashal Interviewed About Advertising Agency's Use Of Social Media

Dashal was recently interviewed by Victoria Colon, a media consultant in Miami, Florida regarding social media and advertising firms. Here is the interview below.

By: Victoria Colon

Social Media is the name of the game. We have been featuring this medium in recent articles on the Blog and Newsletter. Some ad agencies have been able to embrace this medium successfully. We recently interviewed Nick Harrison, Creative Director at Dashal.com, a web development and online advertising firm in Los Angeles about the future of advertising in today’s economy and Social Media boom.

1.How do you see the future of advertising?

Good question. When you look at the overall history of advertising you will notice that it has always evolved with the latest medium it had access to.
Over the last three years however with the gigantic boom in social media, a lot of firms have been slowly realizing the true power of social media when used wisely. The most effective ad agencies realize that it is not just about buying ad space, especially with this troubling economy, it is about being smart and realizing how to take advantage of the non-costly avenues that are available to you.

2. How will ad agencies stay ahead of the curve?

Staying ahead of the curve or in this case, staying “with” the curve, is what it has always been about. Advertising has always been a war between your client and theirs. Who knows more about the war, the government bureaucrats or the soldiers and officers who are in the “shit”? To be successful in Web 2.0 and advertising in 2009 and beyond, you have to be knee deep. You have to not only be up to date with the latest mediums, you have to use and embrace them yourself.

3. What is the difference between large publicly traded agencies versus smaller medium size firms?

Besides the enormous price tag? The larger publicly traded advertising agencies (media conglomerates), their focus is wide, but not deep at a traditional firm. they can’t specialize in “everything” that’s a huge part of the problem. they are trying to be everything to everyone. that strategy does not work in today’s market and they are “always” steps slower than younger vibrant firms. The youth does not make the smaller firms vibrant. it’s the lack of silos in a huge corporate behemoth (leo burnett has plenty of 23 year-olds on staff). They are just starting to grasp the importance of social media hence the “slowly realizing the true power of social media.” The management of large firms are stuck in their separate offices and separate floors and usually have no clue of what is “really” going on in the world of technology. Traditional ad executives have no idea how technology works, much less how to leverage it to the strategic advantage of their clients). Larger agency’s management usually consists of executives who have just figured out how to use their Blackberry or iPhone. A medium size ad agency usually has a big warehouse type space that is “open”. The management teams work in the “trenches” with their employees versus behind closed offices so that they are able to “see” what is really going on versus reading a report about it.

4. How do you think agencies can continue to innovate when shareholder value is their main concern?

Well, they have to or they are going close their shop. Clients are scarce now and it doesn’t matter how much money a firm has, it has to do with your client’s budget and how effective you can be with it. This economy will force firms and companies to use social media and other mediums that are less inexpensive and shifts their advertising dollars from technology to people. It is the only way that advertising agencies can meet customers’ expectations that can and do change in step with technology and the marketplace. There is resistance though, Veronis Suhler study shows that 40% of consumers time is spent on Internet/Digital Channels while only 10% of spend is going to this media.

The one caveat to the massive layoffs and job freezes in advertising land is that advertising agencies can pick and choose their talent. Top talent is just lucky to even have a job. It allows agencies to have the best of the best. This is if they don’t go off and start a competing agency. Non-compete clauses have been deemed to be anti-competitive practices leading firms to eliminate them, thus opening new avenues to the talent pool.

5. Which would you say are the top agencies in social media and digital video?

Omnigroup, Focus Media, WPP Group, Ogilvy to name a few.

6. How do you use social media to its full potential?

To use the true power of social media it isn’t about that perfect ad. It isn’t about that catchy slogan, it is about building relationships. You need customers to “want” to follow you on Twitter and sign up to your Facebook page because you are engaging them, engaging them in dialogue, conversation, humor and not a product or service push. How do you do this? Be creative! How about having trivia games, perhaps your Twitter followers can get 10% off during a small period of time, etc. You have to communicate with your customers and treat them like your friends, not just your targets. If you provide rich content and you make yourself interesting, your customers will spread the word for you. That is the true difference between social media and buying ads. Social media is about interaction and friendship, other mediums like print and TV are about pounding ads down someone’s throat until after seeing that Carl’s Junior commercial ten times you now have to have the Jalapeño Burger.

7. What are some practical strategies for positioning yourself, your work, and your clients as an agency?

In regards to your own advertising agency, I would say try to stay as lean as possible and get back down to basics. Make use of interns and I would suggest a reduction of salaries before layoffs if at all possible. Re-train existing staff to understand new media or hire young guns to get you started. In regards to your clients, you have to remember that there are significantly less of them due to this economy and the few that are left are struggling and have small advertising budgets, but need big results. A few years ago you could whip out an ad and throw money publicizing it and you were done. You didn’t have to actually “work”. You and your client can both be successful in these times, but you have to take advantage of social media, SEO and other none traditional mediums. Take the time to know your clients, their target audience and what inexpensive mediums, which are available, and your agency and client will be all right.

“The ideology behind social media is simple - PAY IT FORWARD!” Nick Harrison

Interview By Victoria Colon http://www.victoriacolon.com