But wait…its not the same Whats happening, and why? And just what can we expect of the future?
1. Changing forces 2. The new consumer 3. The marketers challenge 4. The agencys role 5. Some concepts 6. Making sense of it
Clients Agency is a vendor not a partner Agency is a vendor not a partner Project orientation Project orientation Fast response Fast response Low cost Low cost Diminished loyalty Diminished loyalty Changing Forces
Technology Encourages new competitors Encourages new competitors Promises are not being fulfilled Promises are not being fulfilled Expensive Expensive Hard to apply Hard to apply Changing Forces
Death of the mass market Steady decline of network TV Steady decline of network TV Proliferation of specialized media Proliferation of specialized media Dialogic web communications and sales Dialogic web communications and sales New communications technologies New communications technologies Changing Forces
Expect personal relevance Its all about me Its all about me Advertising filters Advertising filters One-to-one One-to-one Intrusion to invitation Intrusion to invitation Message coherence Message coherence The New Consumer
Points of influence Multiple receptors Multiple receptors Advertisings slice of the pie Advertisings slice of the pie Need for validation Need for validation Third party endorsement Third party endorsement The unexpected The unexpected The New Consumer
Power shift From the sender From the sender The time The time The place The place The content The content To the receiver To the receiver Interactive Interactive TiVo TiVo The New Consumer
Its not so easy anymore What outcomes are expected? What outcomes are expected? Market share vs. profits Market share vs. profits Strategies vs. tactics Strategies vs. tactics Brand building vs. immediate sales Brand building vs. immediate sales Cost vs. value Cost vs. value The Marketers Challenge
Fear Job retention Job retention Risk aversion Risk aversion Action over intellect Action over intellect Senior churn Senior churn Mid-level churn Mid-level churn The Marketers Challenge
Client side talent Credibility with senior management Credibility with senior management Craft skills Craft skills Judgment maturity Judgment maturity Time frame focus Time frame focus The Marketers Challenge
Advertising doesnt work alone Vehicle proliferation Vehicle proliferation Im the solution vendors Im the solution vendors The magic bullet syndrome The magic bullet syndrome Budget allocation Budget allocation The Marketers Challenge
Orchestration Multiple instruments Multiple instruments Harmony Harmony Special skill sets Special skill sets Who? Who? How? How? The Marketers Challenge
The agency business model The tried and true…isnt! The Agencys Role
Historical baggage? Agency status Agency status Partnership with clients Partnership with clients Full service Full service Agency of record Agency of record Bill paying accommodation Bill paying accommodation The Agencys Role
Polarization The holding companies The holding companies Owner-managed agencies Owner-managed agencies The history of innovation The history of innovation Break-out agencies Break-out agencies The Agencys Role ?
What business are we in Ad makers Ad makers Stuff factories Stuff factories Solution architects Solution architects Something else Something else The Agencys Role ?
Rethinking What values will we provide What values will we provide What will it take to provide them What will it take to provide them How will we get rewarded How will we get rewarded The Agencys Role ?
Customer centricity More than a buzz word More than a buzz word Media agnostic Media agnostic Compensation agnostic Compensation agnostic Dichotomy Dichotomy Some Concepts
Niche positioning Meaning of your brand Meaning of your brand Known by the work Known by the work Known by the clients Known by the clients The ability to say no The ability to say no Some Concepts
Flexibility Mirroring clients Mirroring clients Internal barriers Internal barriers Function vs. task organization Function vs. task organization Self-confident people Self-confident people Some Concepts
Focus A mile wide and an inch deep A mile wide and an inch deep An inch wide and a mile deep An inch wide and a mile deep Rifle vs. shotgun Rifle vs. shotgun Best of class Best of class Some Concepts
Low cost provider Price is a fact of life Price is a fact of life Low cost doesnt mean cheap Low cost doesnt mean cheap Value Value Business creativity Business creativity Some Concepts
Exit services Perceived value Perceived value Competitiveness Competitiveness Sunset mentality Sunset mentality Relentless pruning Relentless pruning Some Concepts
Exit clients Blasphemy Blasphemy Known by them Known by them Reflect where you want to be Reflect where you want to be Do it gracefully Do it gracefully
Quality Expectation based Expectation based Error horror stories Error horror stories The 2 point difference The 2 point difference Process quality management Process quality management Some Concepts
Adhocracy The military model The military model Task centric Task centric Inter-disciplinary Inter-disciplinary Self-assured people Self-assured people Some Concepts
Strategic relationships Aggregator Aggregator Build or buy? Build or buy? Core competency Core competency High maintenance High maintenance Some Concepts
Entrepreneurialism Sense of ownership Sense of ownership Desire to excel Desire to excel Risk/reward Risk/reward Measured by market Measured by market Some Concepts
Observations What worked in the past will likely not work well in the future What worked in the past will likely not work well in the future There is great opportunity There is great opportunity There is also great risk There is also great risk Creativity is needed in shaping the future business model(s) Creativity is needed in shaping the future business model(s) Making Sense of It
When and how The time is now The time is now Rethink your agencys business model Rethink your agencys business model Choose the course that is best for you Choose the course that is best for you Align the agency with that course Align the agency with that course Making Sense of It
Prediction The next ten years can be the best of times for smaller, owner-managed agencies Making Sense of It