Sutherland: Agencies must redefine value of advertising

The advertising industry must unite to prevent its creative value ebbing away alongside media, the new Institute of Practitioners in Advertising (IPA) leader Rory Sutherland warns.

Sutherland says he will set-up a IPA cross-disciplinary group to explore ways agencies can work together to “grow the value of advertising and how it is rewarded” and boost investment in “consumer psychology and behavioural economics” research.

He outlined his plans for the IPA under his leadership in his inaugural presidential address at its annual members’ lunch in central London today (April 22).

“There’s a particularly vital reason I am keen to emphasise the value of what we do independent of the media spend. And that’s because of falling media costs.

If the stockmarket continues to link our fortunes as agencies with the fortunes of the media, we have an enormous problem. We should be keen to de-link how we make money from how media make money,” he adds.

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