Capítulo 4
Good-bye, Don Draper: The Agency Revolution
The era of Madison Avenue's creative dominance has ended, replaced by a fragmented landscape where agencies struggle to maintain relevance and client relationships have fundamentally changed.
In Don Draper's era, agencies ruled through the 15 percent commission system paid by publishers, creating what Randall Rothenberg calls "collusion between agencies and publishers to keep prices high." Creative titans like Bill Bernbach could demand clients follow their recommendations exactly, and George Lois would threaten to "jump out this window if you don't approve this ad!" Michael Kassan notes that media buyers, portrayed as nerds in Mad Men, gained respect only later when independent media buying companies emerged in the late 1970s.
The advertising world was divided by competing philosophies: Rosser Reeves championed the "Unique Selling Proposition" backed by research; Bill Bernbach relied on gut instinct, arguing "advertising isn't a science, it's persuasion. And persuasion is an art"; while David Ogilvy promoted consistent brand personality through "trivial product differences." Despite their differences, these titans agreed that advertisers ultimately held power, influencing even what networks would broadcast.
The 2008 economic crisis accelerated the shift of power from CMOs to procurement officers and CFOs scrutinizing marketing costs. "Today clients are not married to an agency. They are only dating," observes Kassan. Keith Reinhard, who maintained Anheuser-Busch as a client for 33 years, laments the loss of "top-to-top relationships" between agency leaders and company patriarchs. David Sable of Young & Rubicam notes the biggest difference from Don Draper's era is that "in those days, you had a problem and you called your agency. You were partners."
Shell's 1960 rebellion against the 15 percent commission system began a shift to fee-based compensation that David Ogilvy championed for its objectivity. While this aligned agency-client interests better, it invited procurement officers to question costs and ultimately slashed agency earnings "by maybe one third or half," according to Miles Young. Jeremy Bullmore admits the commission system was "absurd" but effective because "it made agencies compete on services, not price."
The most disruptive change has been technology's proliferation of consumer choices. Mobile phones now command more attention than television, allowing advertisers to target individuals rather than spray audiences. "The biggest difference from Don Draper days is data," says Unilever's Keith Weed, noting that computers' ability to analyze data has transformed marketing. Rishad Tobaccowala of Publicis pinpoints 2007 as the turning point when consumers gained power-the year Apple introduced the iPhone, Facebook opened to everyone, and Amazon launched Kindle.
Today's information glut means consumers have "too little attention to allocate," making traditional advertising feel "awkward, forced and disingenuous." Evidence of consumer resistance appears in ad blockers and Nielsen data showing half of DVR viewers skip ads. The industry's anxiety manifests in verbal smokescreens, with companies claiming to sell "solutions" or "experiences" rather than products.
At MediaLink's weekly staff meeting, Wenda Millard and Michael Kassan discuss the erosion of trust between agencies and clients. "They're all running for the exits," Millard observes about agency talent. "One of the big issues we have is, if I can make forty thousand dollars at an agency as a media planner but I can make sixty thousand at Facebook, what am I thinking? This is not a happy industry." A 2016 Campaign US survey found 47% of marketing veterans report low morale, while LinkedIn ranked advertising last among industries for work/life balance and strategic vision. Kassan, however, sees opportunity in the chaos: "I would hope you all see why that continued chaos and disruption is kind of a blessing in disguise for us."
Capítulo 5
The Matchmaker: Michael Kassan's Rise to Power
Michael Kassan is advertising's Dolly Levi, the matchmaking character from Hello, Dolly!, whose score he loves to hum. Known for believing everything is "ALL GOOD" (the sign above his desk), Kassan has an extraordinary ability to charm clients even when making mistakes. When he accidentally pulled out a Verizon phone in front of an AT&T executive client, he instantly smashed it on the pavement with his heel, turning a potential disaster into "a bonding moment."
Raised in a modest two-family home in East Flatbush, Brooklyn, Kassan inherited his charm and humor from his father, a former Catskills stand-up comic who ran dry cleaning stores, while gaining business acumen from his mother. The family moved to Los Angeles when Michael was three. Though a good student, he was marked down for classroom cooperation: "I was a wiseass... I would never raise my hand in class if I wanted to speak. I was a showman." After attending multiple universities, he graduated from UCLA as an English major before earning a law degree at Southwestern Law School.
In law school, Kassan met Ronnie Klein through a borrowed coat that needed returning. Their first encounter ended with her shutting the door in his face, but he persisted after being struck by her "beautiful blue eyes." After an accidental street encounter forced her into a first date, they gradually fell in love. In May 1974, when Ronnie confessed her feelings, Michael spontaneously proposed by suggesting she tell her friend she was "bringing her fiance" to an upcoming wedding. They married in December 1974 and eventually settled in Los Angeles, where Michael's optimistic nature emerged-buying a Porsche when they couldn't afford a house, confident "everything will work out all the time."
Kassan discovered his talent as a "rainmaker" in law, recruiting twelve new clients in his first month at a firm. Though successful in legal practice, he joined International Video Entertainment as president and COO in 1986. After helping engineer the company's sale in 1987, he returned to law but continued seeking business opportunities. He invested in El Pollo Loco franchises, which initially thrived but later faltered when they expanded too rapidly to Las Vegas. Trying to save the struggling franchises, Kassan improperly transferred funds between locations, leading to his termination, a felony conviction for embezzlement (later reduced to a misdemeanor and expunged), and temporary suspension from practicing law.
Dennis Holt offered Kassan redemption in 1994, hiring him to sell Western International Media, the world's largest independent media agency. Kassan successfully sold the company to Interpublic Group within six months but clashed with both Holt and IPG executives, eventually leading to his termination and a lawsuit that was settled out of court. After a brief stint with digital rights business Massive Media, Kassan began consulting independently, which led to his founding MediaLink in 2003. The company grew slowly until 2009 when Wenda Millard joined as president and COO with one-third ownership, after which "the business exploded." MediaLink positioned itself "where Madison Avenue meets Silicon Valley, meets Hollywood, meets Wall Street," offering services including technology solutions, marketing optimization, and agency reviews.
MediaLink's business operates through several key divisions. The Marketing Optimization division provides strategic advice, introduces transformative connections, and handles agency reviews. Business Acceleration helps traditional media clients like Hearst and Conde Nast reimagine themselves beyond print. The Emerging Media division advises digital companies like Twitter on strategic issues. The Investor Strategy group serves clients exploring acquisitions or investments, competing with consultancies like McKinsey. Talent@MediaLink performs executive searches, accounting for nearly 15% of business. The Market Visibility division, led by Brett Kassan Smith (Michael's daughter) and Lena Petersen, handles promotional roles and event coordination at industry gatherings like Cannes and CES.
Michael Kassan functions as advertising's ultimate matchmaker. His days are fragmented into 5-20 minute increments, managing hundreds of calls and emails daily with the help of his "chief of stuff." His network grants him immense power-negotiating executive contracts, delivering celebrities to client events, and becoming what Publicis's Rishad Tobaccowala calls "a synapse of the industry." CBS CEO Les Moonves describes him as "a wheeler-dealer" who "represents everybody," while iHeartMedia's Bob Pittman compares him to Chinese compradors who built trading bridges. Despite his success, MediaLink faces surprisingly little scaled competition in the industry.
Critics compare MediaLink to "the Mafia" that clients pay for protection, with one tech CEO complaining about escalating monthly fees. Some digital executives criticize Kassan as representing the old-school "hucksterism" the industry claims to be moving away from. Others note his tendency to flatter interview subjects rather than asking tough questions. The most significant criticism concerns MediaLink's potential conflicts of interest-representing rival companies like Facebook and Google, personally investing in companies he might recommend to clients, and representing both buyers and sellers in negotiations. Kassan defends himself with his motto "No conflict, no interest," insisting that transparency about representing all parties is his "special sauce." As he jokes, "Two clients in a category is a conflict, three is a specialty."
Capítulo 6
Anxious Clients: The Shifting Power Dynamic
In this era of disruption, brand clients face unprecedented challenges that strain agency relationships. CMOs grapple with digital fraud costing billions, pressure from CFOs demanding ROI, and confusion over which marketing technologies to invest in. The average CMO tenure has shrunk to just two years, with each new one typically bringing in new agencies and demanding cost reductions. While some clients like Unilever's Keith Weed maintain trust in their agencies, many others have grown skeptical about transparency and value.
The 2015 wave of agency reviews following Jon Mandel's revelations about kickbacks created bitter competition among holding companies. While Maurice Levy charmed Bank of America with a cohesive presentation featuring his chief strategist Rishad Tobaccowala, WPP's Martin Sorrell offended them with a disjointed presentation where executives "lectured" rather than engaged. These reviews signaled a fundamental shift in client-agency dynamics beyond typical pitch competitions.
Clients increasingly bypass agencies by bringing work in-house. Procter & Gamble created its proprietary programmatic ad buying system, while 31% of advertisers report bringing programmatic elements in-house. Airbnb's CMO Jonathan Mildenhall employs creative staff directly, noting that half his marketing department consists of "writers, art directors, photographers and videographers." Even traditional creative work is moving in-house at companies like Apple and fashion brands, though agencies still typically handle major brand campaigns requiring top creative talent.
PR firms like Edelman now create digital content for brands like Samsung and Taco Bell, recruiting influencers and creating engaging content like Dove's "Love Your Curls" emojis. Publishing platforms pose another threat by creating "native ads" that bypass ad blockers and look like editorial content. The New York Times has hired 110 copywriters and art directors to create native ads for brands, though Sorrell dismisses this threat, saying "110 people creating native content are not going to put off the evil day, the continued decline of print."
The advertising landscape has transformed dramatically since the days of Bill Bernbach and David Ogilvy. What were once integrated agencies have fragmented into specialized holding company divisions, each charging separate fees instead of the traditional 15% commission. Meanwhile, the media environment has exploded from three major networks to countless digital platforms. As GE's Beth Comstock observes, "Back in Don Draper's day you had three major networks. You had people's attention. People had fewer choices... digital changes the definition of what advertising is."
Under Beth Comstock and CMO Linda Boff, GE has transformed its marketing to position itself as a "cool" digital company rather than an old industrial one. Their four-person Disruption Lab scouts emerging technology trends and positions GE as a content creator. Notable initiatives include a partnership with National Geographic for the "Breakthrough" series, the viral "What's the Matter with Owen?" campaign portraying GE as welcoming to young engineers, and offbeat projects like a limited-edition hot sauce packaged in materials used in jet engines. Despite a modest $100 million marketing budget, GE's innovative approach has earned industry admiration.
GE exemplifies another industry shift by working with multiple specialized agencies rather than relying solely on their century-long partner BBDO. This "team culture" approach brings together diverse expertise but creates inevitable competition. Gary Vaynerchuk's VaynerMedia represents the digital-first disruptors challenging traditional agencies. Starting with social media marketing, Vaynerchuk has expanded to compete for television work, telling established agencies, "You're going to die." His success with clients like Chase Bank demonstrates how digital-native agencies are moving upstream, leveraging their data expertise and attention-focused approach to win business from traditional firms.
Bank of America's marketing meetings, led by Anne Finucane, illustrate the changing client-agency relationship. Finucane's unusual background includes political connections through her family's ties to Tip O'Neill and the Kennedys, and experience managing Fleet Financial's reputation after predatory lending claims. She became a trusted advisor to four different bank CEOs because, as she explains, "I am not a banker. My expertise is in the world of marketing, communications, public policy, data analytics, research." After the 2008 financial crisis, BofA struggled to rebuild its reputation, turning to Michael Kassan for guidance on agency selection. Their marketing meetings now involve numerous agency partners including WPP executives, pollsters, strategists and creative agencies-demonstrating how modern marketing extends far beyond traditional advertising to include political strategy, reputation management and digital engagement.
Capítulo 7
"Same Height as Napoleon": The Agency Holding Companies
The global advertising landscape faces a leadership crisis, with aging CEOs at major holding companies: WPP's Martin Sorrell (71), Publicis's Maurice Levy (75), Omnicom's John Wren (64), and IPG's Michael Roth (70) - none with clear successors. These companies dominate the industry: WPP ($18.7B), Omnicom ($15.1B), Publicis ($10.6B), IPG ($7.6B), Horizon ($6.5B), Dentsu ($6.3B), and Havas ($2.4B).
Martin Sorrell's drive stems from his Jewish immigrant family background in London. His father Jack, who gave up a music scholarship to support family, managed 750 appliance stores and remains an inspiration through a photograph in Martin's office. At Haberdashers' Aske's Boys' School, Sorrell showed early business ambition, later earning an MBA from Harvard before joining Saatchi & Saatchi as CFO in 1976.
In 1985, Sorrell acquired Wire and Plastic Products (renamed WPP), transforming it through aggressive acquisitions. Notable takeovers included J. Walter Thompson in 1987 and Ogilvy & Mather in 1989 for $864 million, earning him David Ogilvy's infamous "odious little shit" comment. Despite near-bankruptcy in 1991, Sorrell rebuilt WPP into the world's largest advertising company with 205,000 employees across 112 countries, achieving industry-leading margins of 16.9% by 2015.
Known for his hands-on management style and instant email responses, Sorrell constantly travels between WPP's global offices. While some criticize his micromanagement, others like David Sable defend his approach. Sorrell emphasizes that 75% of WPP's revenue now comes from "things Don Draper wouldn't recognize," focusing on data analytics and digital services rather than traditional advertising.
Harvard Business Review ranked Sorrell the fifth-best CEO globally in 2015. Looking ahead, he identifies two main threats: digital giants like Google and Facebook, and consulting firms, creating what he calls "frenemy" relationships - simultaneously competitors and collaborators.
Capítulo 8
FRENEMIES: The Tech Giants and Advertising
Carolyn Everson, Facebook's vice president of global marketing solutions, built her career through strong relationships, including a long mentorship with Michael Kassan that began despite an awkward first meeting. After roles at Disney, Pets.com, Zagat, PriMedia, and Viacom, she joined Microsoft in 2010. Four months later, she moved to Facebook, attracted by its advertising-focused business model and entrepreneurial culture.
As Facebook's agency liaison, Everson maintains they aim to help agencies adapt to mobile marketing, not disrupt them. However, Martin Sorrell challenges this claim, arguing Facebook is essentially a media company that refuses to share valuable user data. Kassan acknowledges the threat: "If you and I find out we speak the same language, why do I need a translator?"
Industry concerns about Facebook stem from its massive scale (surpassing ExxonMobil by 2016), data practices, and potential to bypass agencies. By 2016, Facebook earned $27 billion from ads, while the "digital duopoly" of Facebook and Google captured 85% of new digital ad spending. Competitors like Kargo's Harry Kargman worry Facebook aims "to become the Internet" itself.
Facebook's attitude toward advertising evolved from initial reluctance to embrace. Under Sheryl Sandberg's leadership from 2008, the company fully committed to an advertising revenue model. From 2011 to 2016, Facebook's advertiser base grew from half a million to five million, supported by sophisticated targeting tools that allow companies to bypass agencies entirely.
To improve industry relations, Everson established the Client Council and Creative Council, which meet quarterly to provide feedback. These initiatives have driven changes in mobile strategy, global expansion, and format development. However, tensions persist around data sharing, with agencies wanting more access to Facebook's consumer data. As one agency executive noted, the councils feel like "the greatest grin fuck... to keep smiling when you're fucking us," suggesting Facebook's ultimate goal might be eliminating agency intermediaries.
Capítulo 9
Mad Men to Math Men: Technology's Transformation of Advertising
Michael Kassan summarizes advertising's evolution succinctly: "It used to be Mad Men. Then it became Media Men. Now it's Math Men." He explains that the creative agency (Mad Men), media agency (Media Men), and data/technology person (Math Men) have merged into "one person. And that's what clients want." The industry increasingly relies on Math Men's tools-machines, algorithms, data, and artificial intelligence-with engineers' skills in high demand.
Dag Kittlaus demonstrated Viv's capabilities at the 2016 TechCrunch event, showing how it could instantly answer complex questions like weather forecasts, send money to friends, and order flowers. Martin Sorrell warned that Amazon was becoming "the elephant in the room"-the foremost threat to advertising agencies-partly because of Alexa and Amazon's vast data collection. He feared Amazon could make WPP an unnecessary middleman, as clients could directly access Amazon's marketing insights.
Programmatic advertising uses machines to deliver individualized marketing messages by analyzing data, targeting specific audiences, and automating decisions. Tim Armstrong of AOL and Verizon invested heavily in this technology, which transforms traditional advertising models. While networks still charge premium prices for Thursday night slots, programmatic machines can identify when target audiences watch content at other times, potentially at lower costs. Though programmatic hasn't significantly penetrated network TV sales, it accounted for $19 billion of $178 billion in global digital ad spending in 2016. Martin Sorrell aggressively expanded WPP's programmatic capabilities through Xaxis, which became WPP's fastest-growing asset, while agencies increasingly hired software developers and data scientists rather than traditional advertising professionals.
The digital advertising ecosystem faces significant challenges with transparency and fraud. Facebook's "walled garden" approach prevents agencies from fully understanding what happens within its environment, limiting their ability to verify ad effectiveness. By 2016, complaints mounted about digital platforms charging advertisers for ads never seen by humans, with algorithms placing ads on inappropriate sites. James Murdoch noted that "the amount of fraud is staggering," with one study estimating ad fraud cost advertisers $12.5 billion by the end of 2016.
AI's marketing applications create both opportunities and concerns. At a GE marketing meeting, CMO Linda Boff wrestled with how to differentiate their AI approach from IBM's Watson, noting "AI is kind of creepy." They sought to humanize their technology with storytelling that emphasized "We want to harness machines, not let machines harness us." Microsoft engineer James Whittaker explained that AI's recent acceleration stems from advances in three areas: vast amounts of data, organization that computers can understand, and blazingly fast processing speeds. Companies with deep pockets-Google, Facebook, Amazon, IBM, Oracle, Apple, and Salesforce-compete aggressively to hire engineers and data scientists to dominate this field.
James Murdoch predicts machines will eventually sell the bulk of Fox advertising, potentially threatening advertising holding companies' existence. While Brian Lesser agrees machines will replace many GroupM functions, he believes those machines will be employed by GroupM itself. Airbnb's CMO Jonathan Mildenhall suggests algorithms will eventually craft ads without human creativity. Viv founder Dag Kittlaus envisions a shift from a "discovery economy" to a "consumption economy" where digital assistants make purchase recommendations based on personal data, with vendors paying referral fees. However, BBDO CEO Andrew Robertson counters that creativity becomes more important, not less, as consumers encounter more ads across more platforms, arguing "Math Men and Mad Men are joined."
Technology's central role in marketing comes with significant drawbacks, as Facebook painfully discovered. In 2016, Facebook admitted overestimating video viewing times by up to 80% by only counting views longer than three seconds. This mathematical error shook client confidence and prompted industry demands for independent measurement of Facebook's walled garden. Despite Carolyn Everson's assurances that advertisers weren't financially harmed, Facebook would admit ten measurement mistakes over subsequent months. Google faced similar issues with programmatic ads appearing on racist, extremist, and pornographic sites. By early 2017, major brands including Walmart and PepsiCo pulled ads, while P&G's Marc Pritchard declared "the days of giving digital a pass are over," demanding a 5-point compliance program from digital platforms.
Despite technological advances, human elements remain essential to marketing. DDB's Wendy Clark notes that while algorithms offer science, they lack art and empathy-the ability to engage consumers emotionally. Michael Kassan points to serendipity in purchasing decisions that Math Men can't anticipate. Even Facebook's Carolyn Everson, who straddles both worlds, acknowledges that "a machine can't come up with a strategy" or creative ideas. Her early use of the word "magic" to describe creative advertising met resistance from engineers who insisted, "We don't use the word magic here." By 2017, both Facebook and Google recognized these limitations, hiring thousands of human reviewers to monitor content and protect advertisers.
Capítulo 10
Good-bye Old Advertising Axioms: The Future of Marketing
The advertising industry faces a fundamental question: has the interruptive ad message become a relic in an era of Netflix, YouTube, DVRs and ad blockers? Traditional marketing wisdom is being challenged on multiple fronts, as demonstrated by the mysterious relationship between advertising and consumer behavior.
Jeremy Bullmore illustrates advertising's mystery with an anecdote about a friend who bought an Aston Martin because of an ad he saw 52 years earlier at age fourteen. Even with digital ads, it remains nearly impossible to calculate what truly leads to a purchase decision. As Michael Kassan noted at a Paley Center panel after the 2016 election, Americans now get 62 percent of their news from Facebook, 90 percent consult a second screen while watching TV, and human attention spans (eight seconds) are now shorter than a goldfish's (nine seconds).
Donald Trump's 2016 election victory challenged several cherished advertising precepts. First, spending more doesn't guarantee success-Trump spent far less on advertising than Jeb Bush in the primaries and Hillary Clinton in the general election. Second, "free media" proved more valuable than paid advertising as Trump's unpredictable statements generated constant coverage worth nearly $2 billion according to MediaQuant. Third, celebrity endorsements backfired for Clinton, reinforcing her "elitist" image. However, Trump's campaign reinforced one emerging axiom: targeting works. Using Cambridge Analytica's sophisticated data mining and direct messaging through social media, Trump built a community of supporters much like Nike does with its membership programs.
Beyond competitive challenges like clients bringing work in-house or consulting companies entering the space, agencies face potential existential threats from digital giants. Martin Sorrell specifically worries about Amazon, which possesses vast consumer data and cloud computing power while refusing to share information. With almost half of all online retail sales, Amazon increasingly enters WPP client businesses-making products competing with Unilever and P&G, taking on Walmart, buying TV shows, selling food. "If I ask my clients what they worry about most," Sorrell says, "they say Amazon." He fears Amazon will eventually slide into the advertising business, offering to help target and place client ads, supplanting GroupM.
Mobile phones represent another existential threat to traditional advertising. When 5G replaces current speeds, the impact will be profound-movies downloaded in an eyeblink, no more annoying waits, boosting video ads and virtual reality. A decade ago, digital content was mostly text; by 2016, half was video and photos. Advertisers know effective mobile ads engage consumers with video, an experience that will only improve with 5G. The fundamental challenge: information is no longer scarce. As marketing consultant Gord Hotchkiss notes, "We have too much information and too little attention... We now need to filter information." Consumers increasingly reject intrusive advertising, preferring ad-free options like Netflix and HBO.
Terry Kawaja of Luma Partners emphasizes how mobile fundamentally changes everything: "We've never had a media channel that's personal, that's gone with us. The ubiquity-everyone has a phone. And the persistence-it's always with you." While optimistic that advertisers will eventually adapt, he acknowledges the peril: "Advertising was constructed on the notion of interruption." In an era of mobile phones and social networks, word of mouth becomes the killer marketing tool. As NBC Entertainment chairman Bob Greenblatt starkly put it, "Consumers hate advertising. People are running away from advertising in droves."
The central question for marketers becomes: How to reach consumers without annoying interruptions? Approaches include designing stores as attractions (Apple), creating community spaces (Starbucks), and developing innovative products that generate their own publicity (Tesla). The "Brought to you by" approach is returning-General Electric's "Breakthrough" series on National Geographic weaves GE scientists into programming rather than just displaying logos. Product placement has evolved, with Pepsi not just appearing in Fox's "Empire" but being integrated into storylines. Les Moonves predicts more sponsored shows, product placement, and shorter six-second ads replacing thirty-second commercials. Native advertising is growing rapidly, with spending projected to reach $21 billion by 2018.
Increasingly, brands champion larger movements or causes to distinguish themselves in a crowded marketplace. As Edelman's Trust Barometer shows growing distrust of businesses, purpose-driven marketing can backfire spectacularly, as Pepsi learned with its tone-deaf 2017 Kendall Jenner protest commercial that suggested social movements could be resolved with a soft drink. Conversely, successful purpose-driven campaigns like McCann's "Fearless Girl" statue for State Street Global Advisors (promoting its SHE fund for companies recruiting women leaders) and Citibank's Citi Bike program demonstrate how brands can "do good while doing well."
Data-fed targeting will certainly be a pillar of future advertising, with agencies potentially guaranteeing results to clients. Privacy concerns remain a third rail, with the EU passing legislation restricting personal data collection without consent. While some like Andrew Robertson believe better targeting will place premium on creative that captures attention, others like Michael Kassan fear the link between content and commercial messages is broken as "consumers can get their content without commercials now." Though Kassan predicts "we will live in a subscription world," the economics don't support this vision. With median household incomes barely rising and the average household already paying $267 monthly for subscriptions, most consumers can't afford additional paywalls.
