Dave’s Take

As everyone in the ad biz knows, things ain’t so hot right now. Clients are cutting budgets, consumers aren’t spending and social media is eating away at the very core of the agency model. Add to this list the fact that the American economy is still in the toilet and you have the perfect storm for the end of advertising as we know it. The latest spike to the heart is the recent phenomenon known as “Crowd Sourcing.” As the name implies, this new wrinkle in promotion is based upon the belief that a product’s users know better about promoting a product than do its creators or their agencies.

Crowd sourcing in a nutshell is the method where “crowds” are allowed direct input as to how a product or service should be marketed. While still in its infancy, crowd sourcing has enjoyed a high-profile existence thanks to products like Doritos, whose promotional arm has awarded huge cash prizes for the best consumer generated TV spot for its Super Bowl buys. For the past three years, Frito-Lay’s has encouraged its customers to write, produce and upload their best ideas for promoting Doritos. They then dwindle the submissions down to a few and ask chip-eaters everywhere to vote for the best campaign. Lest you think this is an exercise for chump change, think again – last year’s winner was awarded $1 million! That’s a lot of bucks for dip, Batman.

The newest entrant to test the crowd sourcing waters is PepsiCo. The beverage giant has decided to let the masses promote its new flavors, colors and packaging for Mountain Dew. Announcing their campaign idea on social sites like Facebook and Twitter, PepsiCo is encouraging users to select which agencies’ (or customers’) 15-second spots are the best to promote their fave new flave. The best of these spots will play nationally through April of 2010, when fan votes will determine which flavors (and agencies) make the cut for final distribution. Boy, and you thought your last client review was tough! Agencies and consumers can upload their 12-second sample spots at: http://12seconds.tv/campaign/dewmocracy.

And it isn’t just PepsiCo and Frito-Lay’s that are turning to the masses for inspiration. This fall, Unilever’s Peperami brand dumped their long time agency and instead, ran a contest for new publically generated TV and print campaigns. Sensing an opportunity, two senior management ad guys recently launched Victors and Spoils, the world’s first creative agency based on crowd-sourcing principles. Regardless of their success, these are the kinds of monumental trends that will, if nothing else, change the standards for agency profitability for decades to come. As Mtn Dews’ Director of Marketing, Brett O’Brien sees it, “It’s unclear whether (crowd sourcing) will be a trend that takes hold in a universal way or whether it’s more of an experiment. In general, there’s a lot of experimenting going on in agency compensation. This fits into the context of that larger conversation.”

Apparently, crowd sourcing is catching on. Recent high profile companies announcing its inclusion in their marketing plans include Amazon, Careerbuilder, Chevrolet and HP. As someone who has worked on a campaign or two, I usually embrace new methods and technology. Crowd sourcing however, is something I can’t fully endorse. While a major element in any successful advertising campaign is keeping customers, how much interest do non-users place in an ad based upon crowd mentality?

Apart from its novelty, crowd sourcing seems to be a double-edged sword. On one hand, you are placating current customers by giving them a way to influence brands they like. But, can you really place your confidence in their ability to bring new consumers to the table? When does an idea go from an inside joke to a coherent message to the masses? Who knows? But what I do know is something I learned long ago – if you’re trying to market a beverage to America, it’s the taste, stupid. No amount of biased consumer promotion will make the taste of something better, or more saleable.