Thursday, December 9, 2010

Hollywood Wants To Be In Ad Business (again)


The big Hollywood talent agencies just can't keep away from Madison Avenue. A few months back WME (the merger of William Morris Agency (WMA) and Endeavor) announced the formation of Lverage (yes, that's how they spell it). It's billed as a new global marketing services company. As I have come to expect from Hollywood, the foundation for Lverage is being built upon some acquisitions and shifting of desks. Their goal is to actually displace - not enhance - a brand's AOR relationship.

I have worked with WMA on a number of initiatives and there are lots of very smart people there. However, until they are able to attract and retain the right leadership for these kinds of "start-ups", it will remain yet another shiny object they dangle in front of brands.

Hollywood is great at dumping money on the desks of execs who already have already achieved financial success (they just don't seem to get the fact that there is no incentive or passion in these kinds of people to work hard any more - they all leave after a few short years). To be successful, Lverage needs leaders that will attract teams of people that will do the real work. And, they need better business development people - people with credibility, not Hollywood types that move on from project to project burning bridges as they go. One thing will never change in the advertising industry - people buy from people first. It will take people with solid relationships and CHARACTER to convince brands that this isn't yet another slick new Hollywood power move.

Many have predicted that Lverage will slowly fade away and dissolve into the big WME machine. That's likely true, but I think the "big agencies" should welcome this kind of competition. Negotiating talent deals is night and day from creating brand strategies and developing creative that drives consumer actions. Oh, and working with demanding brand clients is a lot different than pacifying a temperamental movie star. Right?

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