I am describing a magnitude and urgency of change that isn't evolutionary-it's transformational. And as leaders in consumer packaged goods, Coca-Cola will go first to accelerate the convergence of Madison and Vine, a convergence of the trinity in brand building-content and media and marketing.
This is a convergence born of necessity. Economic necessity and marketplace opportunity. We need each other to capture people's attention and influence their attitudes and behaviors.
The media and marketing executives among us better recognize that corporate marketers will not reflexively turn to TV advertising when what we mean is powerful communication and consumer connection.
The studio executives among us better recognize that to utilize the same traditional media we do will subject them to the same declines in its efficacy and threaten their results.
The music executives among us better recognize that they are limited by a dissolution of their traditional distribution and business models.
The television executives among us better recognize you are prisoners of media fragmentation and proliferation and the changing media consumption habits of younger generations.
And the agency executives among us, your model is in need of a wholesale redefinition ... your future will be in working with, not against, content creators.
Together we can be more and do more and make more than any of us can alone. If we do it right. If we do it differently than we've been doing it. If we innovate. If we each do what we're each best at, and do it collaboratively.
It's about creating more value for the consumer as a way of creating more value for our business and shareholders. It's that simple and that tough.
Where are we going? Away from spots in pods. Away from broadcast TV as the anchor medium. Away from product placements that are gratuitous because they lack a compelling idea. Because in today's marketing and media environment, only the naive and foolish confuse presence with impact.
ideas, ideas, ideas
We're headed to ideas. Ideas that bring entertainment value to our brands, and ideas that integrate our brands into entertainment.
We're moving to ideas that use celebrities to illustrate, enhance and extend the values that underpin our brands. We don't want to use talent simply to break through the clutter. Breaking through is a first step, but it's not enough. Frankly our brands are bigger than celebrity spokespeople. Borrowed equity only works when you have none of your own.
In a networked economy, ideas, concepts and images are the items of real value. And there is no network on earth more powerful than the Coca-Cola Company. And, for the right value proposition and exchange, we are willing to make our network available to you.
The Coca-Cola Company has more impressions than any other company on the planet. The Coca-Cola Company in the U.S. spends $1 million on advertising every day that 20 million people see. In total, the Coca-Cola Company benefits from 2 billion plus brand communication opportunities every day in the U.S. alone.
When it's wired, it's a beautiful thing-a network focused on brand building. A network capable of delivering a message, a motivation, an idea. So do we need reach and frequency? No. We need idea-driven connection with our targets.
You can be our added value. And we can be yours. That's where Madison and Vine ought to converge but don't yet. So what's going to create the impetus to change? Same things that always do-economic pain and economic opportunity. The commercial time that isn't bought. The movie that can't attract a promotional partner to help it open big. The cable network that can't be launched without seed money from advertisers. The song that can't get on the radio.
call to action
Intellectually, both Madison and Vine are already there. But thought isn't being translated into action just yet, because some are afraid of missing out on important pieces of cultural connection. But in time fear will subside, or the fearful will lose their jobs. And if a new model isn't developed, the old one will simply collapse.
You should view us as a partner and a resource, not just a source of new revenues. Imagine if self-interest took a back seat to mutual interest. Yes, even here in Hollywood. Imagine if we used our collective tool kit to create an ever-expanding variety of interactions for people that built a relationship, improving everyone's economics and reversing the buyer-seller, zero-sum game.
In this new marketing world we need to look at one another not in terms of how much we can pay, but in terms of what we can do and make together. How we can exchange value to create value.
You need to start looking at Corporate America, at the Coca-Cola Company, not as a company with deep pockets but as a company with deep capabilities, vast reach and extraordinary potential. We destroy one another's value when it's just about money. We will neither pay nor play by these rules any longer. We are a strategic partner for you, focused on providing unique, differentiated experiences for our consumers, your audiences. Together, we need to concentrate on building relationships instead of making one-off transactions. That means we need to do business with a longer-term view.
Our goal: to become as critical to your marketing as you are to ours; leverage our network just like you leverage yours; and maybe charge you, like you charge us.
We're all comfortable with our traditional roles. Hollywood creates culture, defines what's interesting, hip and relevant. Madison Avenue interprets brand values and defines the connections to culture in a contemporary and interesting way.
Marketers build programs that glue together a multiplicity of relationships to create the reasons why we are entitled to a consumer's loyalty and a premium price.
Those clear-cut definitions fit neatly into a box defined by uniformity and predictability, which is no longer sustainable in a hyper-fragmenting world. Each of us needs to think outside that box. We need to broaden the definition of our roles.
All of us in the game need to establish enhanced relationships with one another in an effort to deliver unique experiences to the consumer.
That's a new model for a new era. An era of co-creation. It is what Coca-Cola will insist on from its partners. It's a model we need to build together.
We just put a big sign in the window: partners wanted.
A full transcript of Mr. Heyer's speech is available at Ad Age.com, QwikFIND aao41j