I’ve had some time to to look over my notes from the Edelman Academic Summit held in DC a few weeks ago.  Richard Edelman framed the event in his welcome as an opportunity for those attending to “contemplate and reflect” on what social media means to our fields of study and our students. Edelman, their clients, and the folks at Georgetown and Howard University all deserve great credit for an event like this. I think Richard Edelman’s opening remarks really set the stage for the Summit. 

It’s clear to me that consumers are far ahead of the corporate curve in both awareness and adoption of digital media. As an advertising educator for 20 years, I’ve seen a number of changes that have impacted the advertising business. But, I’ve never seen changes as profound to advertising than those I’ve seen in the past 5 years. It’s personally exciting to hear about and use new digital technologies. I have great teachers! Most of today’s college students are totally digital. These kids are living digitally through cell communications and digital relationships using social media. It’s reasonable to assume that this generation will continue to build personal networks and message shields to guard against communication they choose not to have.

The digital “Genie” is out of the bottle. Personalized media is now a reality. The decline of mass forms of news media, like newspapers, is a fact. Now what? Will advertising agencies be able to break out of their self-created silos? Ad agencies grew from a corporate need to efficiently reach mass blocks of consumers. What happens now that consumers are not herded quite so easily with the promise of free entertainment?  How can an industry that has for so many years “told” consumers what to think now move into a new era of “public engagement” as described by Richard Edelman? Not  easily, that’s for sure. I think PR firms have done a great job in seeing social media and new digital tools as a new way to dialogue with consumers. This seems like a natural evolution of public relations agencies to me. Edelman has been very forward thinking in this area. Ogilvy 360 is also doing amazing work that blends Ad+PR and Digital tools to meet client needs. Major ad shops, like Draftcb, are now developing new service models.

The big question for me is how ad agencies rethink their business model in light of new communication technologies. The percentage of agency revenue from media commissions has been declining for some time and media departments are a huge expense. Media departments will need to evolve as campaign plans rely less on paid mass media and more on public engagement. Logic also follows that other agency departments will also morph as client needs change.

I asked panelists at the Edelman Summit if ad agencies have a future in a new era of personalized communications. Their answers certainly spell major challenges ahead for ad agencies. Edelman’s, Steve Rubel mentioned that ad agencies are “known for creating great brand stories.” Ad agencies have always relied on big creative ideas for campaigns. The need for creative thinking is more valuable than ever, but the entire agency will need to evolve to engage today’s digital consumers with brand content. 

I’m teaching a summer ad class online right now and I’ve been working on a new model for ad agencies at http://www.mindmeister.com/23679968/ad-agency-2010. Mindmeister is a brain mapping website. (hat tip to Steve Rubel) You can create mindmaps and share with others to get their ideas.

Check out my model and post what you think right here. Feel free to hack on my model (requires free sign-up at mm). Add what you think I’m missing. You can also sign-up and create your own version and post your link here along with your comments.