KNOWLEDGESTREAM AT-A-GLANCE
The Evolution of Media Agencies
ABSTRACT
Future of Ad Agencys Ad Agencys are under pressure. Freelancers, technology and changing markets are putting pressure on ad agency’s. What is the future of the ad agency. Needs- Trends – Agency budgets and margins are under pressure. Technology and the accessibility of freelancers have changed the game for agencies. Agency’s need to find new services and models to work by. What are those new options for agencies? Alternatives – Solutions – Management consultancy’s are buying ad agency’s because clients want solutions delivered. Is being part of a bigger solution the answer. Benefits – Ideal solutions – Will agencies be able to find new business solutions. Recommendations. – Actionable outcomes – What are you seeing the most successful growing agencies do and what would you recommend?
PARTICIPANTS
OBJECTIVES
1. : Distill relevant trends and factors and identify relevant examples.
2. : Identify the range of needed capabilities and understand the feasibility of each.
3. : Create a capability roadmap priority of importance and feasibility.
4. :
End Date: Dec 12, 2018
CONTRIBUTIONS
ACTIVITY
58 Days
3 Themes
12 Contributors
422 Posts
81 Comments
162 Followers
OUTPUTS
2 Slide Deck
2 Video
THEME #1
Can Media Agencies take on more ownership of becoming a Brand's lead strategic partner?
THEME SUMMARY
Theme #1: Can Media Agencies take on more ownership of becoming a Brand's lead strategic partner?
- The AOR Model is Dead - Theme assumes any outside partner can “own” THE strategic leadership seat. - Media Agencies, like others in 6-7 agencies world, need accept making contributions is leadership
- Build Flexibility for the one constant . . . CHANGE - Things changing way too fast to have one AOR be all things. - Don’t think in old conventions of media by channel or targets by segment
- Understand CMO in “HOT SEAT” - CMOs under tremendous pressure; they must assume the mantle of growth & keep C-suite influence - CMO tenure is short - CMO is adapting too. “Grew up” in an AOR model
- Media agencies need to behave more like investment planners than real estate agents. - Today's diverse media landscape, a single agency cannot prove BEST in everything - Make “horizontality” real
In this age of 6-7 agencies for different, each with different specialty, Media Agencies, as the other partners need to accept no one outside partner can still “own” a strategic leadership seat.
At once almost 6-7 agencies for different kinds of projects. replaced AOR model-challenge having them as strategic partners rather than execution partners. But, with time, the ecosystem of agencies do understand the brand well and are able to provide strategic inputs as well.
one single agency handling all aspects of marketing equally well looks unlikely for a long time; it will be worthwhile for agencies with varied competencies to partner with each other and serve clients more effectively.
Things changing way too fast. Don’t think in old conventions of media by channel or target by segment. Media Agencies can uniquely combine creative and data for advantage among a Brand's partners
Traditional multinational agencies (eg. McCann, Y&R, Saatchi) are struggling a lot. They are trying to transform or adapt to these in-house moves are creating heavy discomfort between clients and in-house/consultant teams - and agencies are loosing business fast. We are seen it all around.
Things changing way too fast to have one AOR be all things. Big agencies can't bring expertise to new areas urgently needed by co.'s: Data structuring, nuanced creative, leverage latest capabilities of ad platforms. Don't see a change in marketing effectiveness from best-of-breed agency teams.
CMOs are under tremendous pressure and their short tenure strains longer term Client-Agency relationship lengths, too.
The last i saw the average tenure of a CMO is less than 2 years. that means that agencies are constantly managing through new client leadership. CMOs are in the hot seat to deliver big and fast. They will make quick assessments of who they want "on the bus",
But of course, it's also the job of the CMO to adjust their internal culture and processes to working with multiple parties...not an easy task in many large organizations used to that AOR model.
CMOs are under tremendous pressure; they must assume the mantle of growth to keep C-suite influence. Their responsibility expands beyond communications and brand building to also include driving sales & customer value. Agencies must change from media/creative business model to growth-based model.
Today, one single agency proving they can handle all aspects of marketing equally well is unrealistic. Agencies with varied competencies to partner and make "horizontality" really work
"horizontality" was a buzzword, not a practice. Agencies (especially when feeling under the gun for revenue) are competitive in nature and it's tough to put egos aside sometimes.
Whether media agencies can take the lead depends on the client. There's a trend to move in-house. Still a mixed bag-which capabilities are brought in. Today, feels like biggest casualty is the creative agencies on the front end in terms of their strategic role and on the back end with production.
one single agency handling all aspects of marketing equally well looks unlikely for a long time; it will be worthwhile for agencies with varied competencies to partner with each other and serve clients more effectively.
THEME #2
Theme #2: How can Media Agencies win enough of the talent battles to stay competitive?
THEME SUMMARY
Media Agencies need to win the battle for top talent to stay competitive. However, today they not just battling other agencies but top tech companies, Big 5 Consultancies and in-house Client teams. What’s a winning formula?
- Media Agencies sit at the crossroads of data, creativity and attribution/measurement -- Big enough to be tackling significant Brand challenges and small enough to be hands on across all three areas.
- In the chaotic world of consolidation facing Creative Agencies, Research Suppliers and even tumult among big tech leaders, Media Agencies being close to the spend provides a more stable environment.
- Media Agencies cannot offer salary, stock or status competitive with these other constituencies. But more training and front & center opportunities building employee's Brand can be differentiating
Creative + Data. It can seem Media Agency start disadvantaged -- less robust data than tech firms, less creative than a creative agency less C-Suite access. But Creative + Data is a compelling remit
Google and Facebook are way beyond the reach of agencies in terms of data they possess and can analyze. This handicap can be overcome by going back to the basics of storytelling Focus on idea informed by data analytics that large technology giants do not compete with.
There is significant research on the context of the message impacting the effectiveness of the communication. Creative for Media Agencies is looking at context in unexpected ways and developing placement opportunities that get Clients thinking of "creative" as bigger than the words and pictures.
To win in the future, media companies need to show they can actually solve client problems and place the media more efficiently.
Stability. Media Less Volatile
Media agencies need to start with a compelling vision. They need to bring in different types of people and give them room to thrive. Change the organizational structure to be less hierarchical and bureaucratic (more entrepreneurial) and leaders receptive to change (humble vs ego driven)
GM had a big global media consolidation. Carat, who won, develop a much closer transformational rather than transactional relationship. The team actively consult, listen and make real change happen. Media is GM’s second biggest purchase behind steel. Carat needs to sell this to candidates.
Agencies have become avg. solution suppliers and not collaborators focused on Client ROI. ROI focus can distinguish Media Agencies. Importantly, ROI focus is not a business of emergencies (as Agencies often become). Job functions/recognition need to be more about brains (ideas) than hours put in.
Building the Candidates Brand. Invest in individual development. Showing commitment to personal growth (training), using talent to grow Agency and a modern environment can fight dollar disadvantage
People want to be part of something bigger than just a job. Opportunity to be heard and influence not just execute. Agencies should explore how that can happen ranging from comp to client interaction/visibility to strategy and execution involvement
Media Agencies must adopt a success is not dependent on our services/products but dependent on the success of our clients. Offering team members direct Client engagement, empowerment and a voice to optimize and transform the organization.
Bringing creativity, offering training programs, and innovating new models for ROI in the data oriented business would attract talent.
THEME #3
Theme #3 - Thank You . . . Until Next Time