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Clownvertising, Terrorism, and Candy Cane Briefs

by Walter Naeslund on December 17, 2009

I‘ve always been interested in economics, because economics is a great way to model, measure and understand human behavior. In a TED-talk I watched over a bowl of indian curry (I got stuck alone in the office over lunch), Loretta Napoleoni explains the economics of terrorism and how it relates to the economics of the rest of us. One thing that caught my interest was what she refers to as rogue economics, where politics looses control of the economy, and the economy becomes a rogue force. Rogue economics “always lurks in the background” as she puts it, and “comes back in times of change…such as globalization”. This is not surprising. Politics is a system, and systems always take time to adjust to disturbances. In the meantime, the disturbance affects those affected by the system.

This talk made me think – could this be exactly what is happening in our industry right now? That the system that controlled and demanded relevance and results from marketing spend looses control when the world of communications changes rapidly? Could it be that clownvertising is the rogue economics of the advertising industry?
http://mariestamps.files.wordpress.com/2008/12/candy-cane.png
I sat down with a couple of our industry’s most respected names the other day at Le Rouge and discussed this topic. What they said resonated with my hypothesis. They, like me, also saw campaigns like “The Fun Theory” as irrelevant clownvertising where the client is blinded by the blizzard of change, where the strategists are seduced by the “how can we make it viral”-love potion, and where the creatives watch in astonishment as they receive the most delicious candy cane of a brief they’ve ever seen (“just make it fun, ok?”). I haven’t been in the industry as long, but according to my discussion company at Le Rouge, the blizzard of change that came along with the introduction of television advertising spurred similar epidemics of clownvertising in television. “The Fun Theory” is by no means the only famous clownvertising example. To me, the Cadbury’s gorilla falls into the same category, even though “pointless but fun” is perhaps more relevant to a chocolate bar than a $20 000 vehicle. A smaller but more recent example is “The Wall of Sound” for Brothers.

But anyway, back to the question of rogue economics. Because what we DO know about rogue economics is that the system stabilizes over time. This means that pretty soon, it will no longer be accepted to just “go viral” with irrelevant humor, and that a much more difficult task will be put on the plate of advertising agencies. In this new stabilized system, you will have to be attractive (in the literal sense of the word), sticky (in the Gladwell sense of the word), re-shareable, and effective in terms of what you want to achieve (which at the very least requires relevance). This is not easy. It will place enormous demands on the shoulders of advertising creatives and it will – and this is what I love about this change – place less crap in the lap of the consumer. It’s time to step up the game.

[Edit: Consequently misspelled rogue. Sorry about that. Le Rouge probably threw me off. :-) Thanks Matthieu for noticing.]

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Presenting The New Partners at Honesty!

by Walter Naeslund on November 4, 2009

Great news!

We have now finished our first round of expansion at Honesty and now have four of the six partners here full time! Fantastic!

Honesty will be divided into three units, each responsible for their own area of expertise. The three areas are Management & Strategy, Digital Business Development, and Creative Studio.

Two of the new partners, Martin Marklund and Petrus Kukulski, take on the roles of creative directors, and will head the Creative Studio. Martin and Petrus are two of the most experienced creatives in Sweden with a truckload of awards and plenty of amazing characters to their credit. We’re very proud to have them with us.

The Management & Strategy unit will be headed by me (Managing Director) and another of the new partners, Emil Clase (Client Director) who is also extremely experienced in handling client relations. Emil is also a completely amazing person to have on board, and also great lunch company if you’re in the mood for discussing your business with us.

For the Digital Business Development unit, we have two new partners which will be disclosed in two phases. The first one, our new expert on traffic generation using search and social media, will join us on Monday 9/11. Stay tuned for more info on him. The second one, our new edge in digital business strategy and conversion, will join us later this fall.

Post image for Nu blev det trångt i soffan

If you know Swedish, you can learn more about all the news on our Honesty site. We’ll have an English language one up shortly. You can also read about us today in Dagens Industri (4/11).

Now that we’ve launched stage one, I promise to become a better blogger again.
See you soon!

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Lowe Brindfors Wrap-Up

by Walter Naeslund on September 18, 2009

Just a quick note on yesterday’s debacle. The article was written by Tobias Rydengren Rydergren based on an interview with me. It’s not incorrect in any way, and it’s well written and everything, I just want you to see it from that perspective. My texts can be found here on walternaeslund.com. The article quickly received over 4000 4600 votes and 6000 page views, which said something about the heat of this topic.

Other people have also written on the topic . Notably Nikke Lindqvist, one of Sweden’s absolute geniuses in the SEO-business. Though he managed to spell my name wrong (Naeslund, Nikke, with ae), he shares some interesting thoughts.

I also attended the awesome party thrown by Garbergs yesterday (thanks!), and met quite a few people from the industry. I didn’t receive a single negative comment, and plenty of positive feedback, so I really think that we are in a business that wants to change and get better. And really, that’s the point of this whole affair – that we all can get better and reclaim the digital crown.

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Lowe Brindfors Copy the Forsman & Bodenfors SEO Mistakes

by Walter Naeslund on September 15, 2009

Last week I wrote about how Forsman & Bodenfors don’t understand how the internet works. In absolute terms, the description was fair, but in relative terms, they are not worse than most of the advertising business. Yesterday we got another painfull piece of evidence to that effect.

I’m talking about the brand new website of Lowe Brindfors. But to discuss the site we need to separate two things: Design and communications efficiency.

Design

It’s a matter of taste of course, but I think this page is very well designed from a print designers point of view. It’s excellent print design, but awful interactive design. Because it is not interactive. It’s like designing a very pretty car with only passenger seats. And just like such a beautiful but useless car, this site belongs in a museum. Which leads me into point 2:

Communications Efficiency

This thing is a very pretty printed catalogue in digital format. It’s what websites were in the late 90’s. The entire thing is a big Flash-page, with text that you cannot copy, films you cannot share, posters that you can download as PDFs (!) but not share with anyone, and invisible coworkers that you can only reach via email or telephone. No wonder they have this disclaimer on the site:

Apparently they think that the elusive internet out there is about technology and gadgets, which couldn’t be further from the truth. Because really, these new technologies are VEHICLES of ideas. Nothing else. But the ideas have to be made for a world of transparency, not to fill expensive media plans. And for you to come up with such ideas, you have to know how this transparent world functions.

Search and SEO is ONE important aspect to understand in order to get people “to spend time with the brand” (to use Lowe Brindfors’ own terminology), and this is what the brand new Lowe Brindfors site looks like to Google:

According to Google, what’s most interesting about the new Lowe Brindfors site seems to be their webmail (!), followed by pages from their old site, and a PDF press-release from August 2008.

Disclaiming your way out of obvious lack of knowledge about the psychology and behavior on the internet with something general like a “Hey, boy slow it down”-disclaimer becomes embarrassing when confronted with clients who know the internet – something that becomes more and more common every day thanks to knowledgeable rebels and speakers on the topic like Johan Ronnestam, Simon Sundén, and Björn Alberts, just to name a few. [Edit: + Jesper Åström]

Things don’t improve when I read what Peter Willebrand our Swedish ad-business press Resumé has to say about the new site:

“Resume.se thankfully notes that the trend is the same as in other digital communication: simpler, faster, and more head on”.

This statement is very general, and also wrong. The site isn’t fast. It’s a heavy Flash film with a loader from hell. The trend of the internet is not “simpler, faster, and more head on”. The trend, or rather the permanent shift, is to social participation in dynamically coordinated institution-less groups, which means that a site needs to support that behavior. You need to love people, not just say you love them. The new thing about the internet is not that people can now talk back to you, it is that everybody can talk to everybody and coordinate discussions and topics without necessarily involving you. If anything, this is more complex, not simpler. Grasping the entire strategy for this more complex system requires a more diverse skill set ranging from behavioral psychology to technology.

The bottom line is that you can have the prettiest house in the world, but to make friends, you have to meet them. Or else you’ll end up being very lonely.

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Is Spotify the Darth Vader of Music?

by Walter Naeslund on September 8, 2009

Spotify Premium GraphAs Spotify launched their iPhone app, the crowd cheered. The talented SEO-expert (and comedian) Simon Sundén publishes the follwing graph of Spotify Premium sales that went viral amongst us nerds. Half us us thought is was true, and who knows, it may be.

But even if this graphic joke isn’t true, it illustrates something quiet scary. Something scary that starts with an “M”.

Let me tell you a story to explain:

Chapter 1 – The Music Industry

Think for a minute about how the music industry works. This is an industry that has built it’s entire business model around their monopoly on information distribution. Largely, the monopoly has been built on the control over distribution of plastic circles. In recent years, as silver became the new black in the plastic circles industry, the information started to find other ways of distributing itself over the internet, and the monopoly of distribution started to break down.

Desperately, the record industry tried everything to stop these new an superior modes of information distribution by trying to sabotage them with destructive and inefficient “inventions” like DRM. When that didn’t work (because Darwinistic innovation always gravitates towards the efficient), they cried foul, and tried to persuade their friends “in Washington” to legislate and punish anyone who had the audacity to use these new and efficient modes of distribution instead of using theirs.

Why so desperate, you may ask? Well – this was all they knew. It was not them, but the musicians who created the music. What they, the record industry, had to offer was marketing and distribution. And when their monopolized mode of distribution was suddenly outdated, and marketing was suddenly taken over by the music itself, it’s own viral distribution, communities like MySpace, and crowdsourced services like LastFM, the music industry was suddenly cut out of the loop, unable to provide value. And like the dinosaurs before them, their fate looked sealed.

Chapter 2 – The Innovators

But the file sharing systems, though hugely more efficient than the plastic circles, was not perfect. Billions of redundant copies of the information had to be kept on harddrives where you wanted to access the music, sharing the music meant sending over entire files, and meta-information was incongruent. Instead, thought a group of innovative individuals, one would like to take the route of the semantic web and have ONLY ONE instance of every file, with congruent meta data, stored in ONE place so that we could share it by only sending links pointing to the specific files. Then each of us could have access to all information and create a hugely efficient market for sifting out the very best. A more efficient model to be sure, and as we know, Darwinistic innovation always gravitates towards the efficient. The group of geniuses created and productified this new and superior mode of distribution. And they named it – Spotify.

Chapter 3 – The Cartel

And here, the music industry saw it’s chance. In one of the weekly meetings of The Cartel, the organisation they had set up together “to act for the common welfare of artists everywhere”, one executive stood up and said – “we can’t stop every single individual on the internet, but we can stop one company! We can threaten to destroy their new value, and claim part of it as ransom! We can regain our distribution monopoly by using their own value against them! But we have to act quickly! If more inventive companies emerge and compete, like Chilirec for instance, we will loose this last chance for survival of our kind. Sure, Chilirec will try to sue us, in fact, they already did, but that’s no match for our lawyers. We have our own people in the courts”.

One young assistant’s assistant, who had observed them in silence from the end of the table, mumbled quietly “but what value will we contribute? How will we make things more efficient? Will this not stifle competition and put an end to innovation?”? BE QUIET! Roared an executive at the end of the table. THEY NEED US! THEY WILL SUBMIT OR BE DESTROYED!

Said and done. The Cartel cheered and applauded. “If we all agree to let Spotify use our music, and let Chilirec use none, we can cut any deal we want. They have no chance to do this without us. We can use their new invention to return to the times of the distribution monopoly! We can be rich! Maybe we can even keep all new releases within Spotify and NEVER NEVER NEVER release the files to anyone else! Trying to hack Spotify and batch down these files will be easy enough to stop! We couldn’t control the data on the plastic circles, but we CAN control the data on the Spotify servers! We can even demand to own part of Spotify“! The room went silent as his words resonated through the spines of The Cartel directors like a chilling wind. Own the only source of music… on the planet.

Epilogue

When Apple realized what hit them it was too late. A year earlier, soon after The Cartel’s spirited meeting, Apple had given away their last line of defense and allowed the Spotify client on their iPhone. As the power of the iTunes store faded away, Apple tried in a last attempt to launch their version of Spotify, called iTunes Unlimited. The service was impeccably polished, integrated into their brand new Wild Cat operating system, and could play songs while texting on the iPhone, something that the Spotify client couldn’t. But what was the use of all this if they had no music. Or at least, just enough music not to be able to compete with Spotify. The number of Spotify exclusive songs and artists soared and left the rest of the industry in rubble. A lot of people said that “we should have seen this coming when Spotify restricted the iPhone app to paying premium users”. But now it was to late. The war was over. They won.

At least until the rebels on the far moon of MySpace started their indie music rebellion. But that is a whole other story.

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Thanks to all for your interest in yesterday’s post about Forsman & Bodenfors, Svenska Kyrkan, and Google. It led to many interesting conversations both in the comments of the post, on Twitter in my email inbox, on Facebook, and over the phone. Wasn’t quite prepared for that kind of response. So, thanks!

Today I want to talk to you about something else. I want to talk to you about clients. Because even though it is our responsibility as consultants to provide know-how and ideas, clients also need to take their share of responsibility. In short – everybody needs to do their job.

Yesterday I met a prospective client who had great knowledge and understanding of communication and the internet. He almost cried over how he had to actually teach his expensive consultants how to do their jobs. Clients such as this one are a pleasure to meet, and the projects with them always turn out great. They have passion and they understand their role in a successful project.

But sometimes… just sometimes… you bump into something dark and completely different. Let me tell you one of these stories:

On one April morning earlier this year I sat on the balcony with at cup of coffee and a copy of Dagens Nyheter in my hands. I started reading about a topic that I have a particular interest in – computers and learning. The project described in the article is called Skolwebben (The School Web) and is intended to be an information hub for teachers, students, and parents alike. A great idea to be sure! The internet could be an amazing tool to move
learning into a whole new era, but only if competence and ability is
blended into the mix. Here, this didn’t happen.

As I continued reading,  I almost choked on my coffee. This project took on enormous costs. 17 000 000 SEK was poured into the project which was to be carried out by TietoEnator. For anyone of us who has ever worked with communication systems 17 000 000 SEK is a huge sum. For that kind of money we could create amazing strategy, amazing tactics, and amazing implementation. The money would be put into streamlining efficiency for the users based on their actual behaviors, and would be built on open source technology. But this is not what TietoEnator does. Instead, the produce a buggy, complicated and expensive system, hated by teachers, students, and parents alike. From what I could tell from the article in Dagens Nyheter, the project was on it’s way to the garbage can and would then be restarted from scratch.

There is plenty to read about this project and you can find much on Google. Try for example this search. But be prepared to get upset.

"Det är flera typer av problem som påtalas", säger Anette Holm om Skolwebben.As I was sitting there on my balcony, I felt I had to do something. I picked up my computer and wrote an email to Anette Holm, the IT-director of Stockholm City, and also the person who had been commenting the story in Dagens Nyheter, explaining to her my ambition to help out. I told her that I would put mine and my agency’s resources at her disposal to figure out how to turn this catastrophe into something useful. I offered to do it for free*(see edit below).

When I received her answer I had to read it over and over five times before I could believe what it said. I could have understood if she wasn’t willing to involve a new agency into the project, but I had never expected this. It was just too much. Here is the email:


“The School Web is not primarily a matter of communication. Thanks for your offer, but I don’t see the need.” I read in the email.

Not primarily a matter of communication! What?!?! Suddenly it didn’t seem so strange anymore that projects governed by this kind of thinking would make communications projects crash, and take 17 000 000 SEK of tax money with them in the fall. How could anyone with the title of IT-director even write something like this, apparently without flinching? It’s almost Kafta-like.

I sat there looking at the email for a while, trying to figure out what to do with it. It just felt so hopeless. I printed the email and posted it on my wall for while see if I would eventually figure this out. “Not primarily a matter of communication…” echoed in my head. What is it a matter of then? If not communication?

A client like Anette Holm is one that I wouldn’t take on. Good projects can’t emerge from somebody who’s philosophical view of the internet doesn’t include the word communication. I would recommend you all not to take on such projects either. Eventually, we’ll get the clients we deserve, and our clients will get the brilliance they deserve.

Excellence is a business of ideals.

Edit:
FYI, here is a link to the email I sent.

Edit:
The offer was intended as free, though I realize now that I’m looking back at the email that it could possibly have been interpreted otherwise, as commenters “vän av ordning” and Magnus Nilsson have rightfully pointed out. The main point however, is not whether or not we actually did offer our services for free, but that Anette Holm’s thoughts on the project were that “…the school web is not primarily a matter of communication…”.

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What the World Will Look Like in 25 Years

by Walter Naeslund on September 1, 2009

When I went to ad-school I felt that the school was in many respects molding people into replicas of what ad-people were supposed to be. Now I feel that this is perhaps about to change. The other day I got interview questions from Hyper Island regarding digital trends, and today I got another question from Berghs School of Communication regarding “what the world will look like in 25 years“. And despite the fact that a question like that is hopeless in terms of giving the correct answer, I can try to provide some humble thoughts on the subject.

First, the world will be what we make it
. That may sound like an empty phrase, but it’s really quite the opposite. It is a way of living, of working, of acting, and of thinking. If you live by this belief, make decisions and take action, this will not be an empty phrase, but the best estimate of the future that we can produce.

But aside from this answer, I will try to give you an answer to your question that is a little more pragmatic. Looking at what communications will look like in 25 years we can try on two scenarios.

In scenario 1 we make the internet asymmetrical. We let legislation rule what can and cannot be sent across the internet. Material which is not permitted (like “pirated” information for example) will move underground and will be sent using stealth technology. Much of the information flow of the internet will be encrypted jibberish, undecipherable for any sense-making technology wanting to make use of it and invisible to human senses that could otherwise have been used for collaborative sense-making and coordinated collective intelligence.

The goals of those wanting to control certain information based on their nostalgia of the times when they had a lucrative monopoly on distribution will not be reached because of ever improving speed and convenience of stealth technology. Instead, the huge resources that will be put into creating these technologies (love of music for instance is a powerful incentive) will be of great benefit to those who have truly evil intentions but smaller resources, notably terrorists and criminals. Since the only way of stopping “piracy” will be to do so at the infrastructure level (service providers can be real and effective gatekeepers!) this is where we’ll eventually end up, banning encrypted traffic altogether. And presto! The internet as we know it is destroyed.

Also in this asymmetrical scenario, we will start charging for the use of bandwidth. Me, being a strong believer in free markets and competition, opposing this kind of asymmetrical access to the internet based on resources may sound incongruent, but it really isn’t. Much in the same way roads and  equality to the law are the basis for efficient competition (imagine the transaction costs of paying different prices for different levels of use of different roads), I think that access to the internet should be considered public infrastructure that will benefit competition, production, innovation, and market efficiency. But in the asymmetrical scenario, this will not be true anymore, and instead old business models and old distribution monopolies can be recreated by content companies using their funds to squat certain infrastructure lines and only provide access to their content through these. This may perhaps sound fair, but what will happen is that the abundance paradigm of the internet, the free flow of information, the “to each according to his ability” (the reverse of the famously Marxist slogan), and the rise of man through collective intelligence will stop.

I’m an optimist. I don’t think that this will happen.

In scenario 2 we retain the symmetry of the internet. We treat it like infrastructure in place to make markets and information flow efficient. Like a great system of streets and water pipes. In this scenario innovation will flourish because we can all do what we have always done, build on each others innovations, but we can do it with unprecedented efficiency. We can try and fail to a very low cost, we can learn from the mistakes of others, which boosts human efficiency enormously. This increase in efficiency, just like earlier technology leaps such as industrial farming, will create vast amounts of cognitive surplus that we can use for further innovation and production. Note that even resources that seem to be wasted on chatting with friends and Twittering create value in the form of information coordination and add to the collective intelligence. We can learn how people talk, we can cluster information, we can find new synergies and draw new conclusions.

Gossip will become hugely more efficient in this transparent world of efficient communication. This will lead to vengeance and gratitude being distributed with much more precision in answer to bad or good behavior and will make us all behave better and cheat less.

Digitally replicable products will not be products, they will be marketing for products where there is still tension between supply and demand. Musicians will try to get their music redistributed as quickly and widely as possible in order to fill venues and cut deals with brands, authors will do the same with their audiobooks to get speaking opportunities and sell hardcovers, filmmakers will use their films as vehicles for brand building and profit off of their brand, while also providing vehicles for other brands. Ludicrous legislation regarding this will be laughed at in 25 years. So will the crude methods of product placement of our age. The cinema experience cannot be pirated and we will see huge product development in terms of widening this experience. Their temporary monopoly on the film itself has made them lazy in this respect.

There will not be a difference between our digital identity and our physical one. All interaction with us will be permission based, and we will grant permission to those that we like and receive value from. Interuption marketing will be long since dead. The notion of publicly reachable phone numbers and email adresses will be laughed at as cute relics of the past. Our identity will be our identity and we will call people, not numbers, by whatever means is most efficient at the time, voice, video, text, images. By default our precense in the digital and analogue world will be publicly available. The benefits of this will outweigh the drawbacks. At times we will switch this off, just like we close the door when we want to sleep.

The semantic web will be obvious, and we’ll look back at how the internet was and smile at how we had so many copies of everything and how inefficient everything was. Of course each object will only be available in one absolute, so that any update will only have to be done once. Of course each of these will contain data representations fit for each semantic understanding of that particular data. We will be able to search, deploy scripts to ask questions and make calculations, and switch between real time representations and the historic dimension. This will all be very intuitive.

Since you are asking me to describe what the world will look like in 25 years, it is a bit ambitious to think that one blog post will answer it all, but these are some ideas of how things will be. If that’s what we decide to make them into. Because still, I think that my first answer is the best one – the world will be what we make it.

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Contrasts are what make life interesting. Yesterday I woke up here:

…from the sound of sheep walking around outside my tent. Today I woke up and threw myself into a cab to Arlanda to fly off to Oslo and Strömstad for the Bring Dialogue Conference ‘09.

When I got here I realized I’d be staying here:

…at the luxury spa resort in Strömstad. Slightly different from camping – haha! It’s actually even nicer than what the picture shows.

But conferences are all about the people. The people at Social Web Camp were the elite of social media – almost like Sweden’s own R&D-department of digital communication. Here we have a similiar number of people from the business elite (at least from what I can tell so far). Probably as smart, as passionate, and as creative, but in slightly different fields. Also, we have some amazing speakers like Kjell A. Nordström, Micael Dahlén, Magnus Lindqvist, and Jan Bylund. Only to name a few. (Note that all but one are striking the same knuckles-in-chin-pose). :-)

And then I haven’t even begun talking about the shellfish buffet that is planned on Koster for tommorow night.

Those of you who attended my session at the Social Web Camp got to see a preview of the talk I’m doing here. Stay tuned for Slideshare presentation that will be posted shortly. I’ll be discussing the evolution of gossip, good, and evil, draw parallels to social media, and also present thoughts on strategy for approaching this new breakdown of brand privacy.

See you soon!

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Google Voice

You may remember me writing about the Facephone a while back, and also about what I called open permissions. Well – the world just got a step closer to that scenario. But it’s not coming from Facebook, It’s coming from Google.

In addition the groundbreaking technology of Google Wave, Google’s new service Google Voice is also waiting to be rolled out. Still only in private beta, Google Voice could become a nightmare for network providers like AT&T or our Swedish Telia if they don’t drastically rethink their business models. Google Voice takes over your voice-calls much like Gmail took over email. It’s just better than what you are used to, and sets up your phoning into something similar to the open permissions functionality I mentioned above. It’s not all the way there since it still uses phone numbers, but it’s a crucial step along the way to putting you in the drivers seat of your own communications situation.

Read more about Google Voice here.

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This picture is from last years Cannes Lions advertising festival. It was fun. Everybody was there.

But what happened to Cannes this year? Basically nobody I know is going there. Personally, when I have gotten the question about my attendance my answer has been “…nope. Saving my money for modern events and conferences on social media and social psychology instead“. Sure Cannes is sunny and nice, but really, there is sun and parties here too. I’d much rather go to TED if you know what I mean. Don’t have time for trad-ad-talks.

I think that Cannes is just too closely related to the trad-ad business, and while 95% of our Swedish agencies ARE trad-ad agencies, they don’t want to associate with it too much anymore. They dream of being modern and figuring out “Digital” (yes, they say it capitalized). AND of course, they need to save money. After all, they haven’t sorted out how to innovate their way out of the recession just yet.

This year it has also been painfully obvious how contest juries just aren’t up to par when it comes to judging communication. How on earth can expensive-production-irrelevant-micro-site-solutions whin in a year like this one? Not much point for innovators competing then, is there? Can this also explain part of the Cannes drop out?

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