Marketing Services agencies have had a tough time recently. Clients want more for less, and they want it faster. These slides are our keynote address at a recent event in London hosted by The Art of New Business. The future will be good - so long as agencies re-examine their engine room - the business models through which they can add most value to clients.
2. Demographic and social change
Shift in economic power
Rapid urbanisation
Resource scarcity
Technological breakthroughs
Neon Nelly
3. Forrester Research believes today's ad agencies are not
well-structured to take on tomorrow's marketing
challenges… the research firm paints a grim view of
the current state of advertising, which it believes is in
"a world of hurt”.
- the organization of agencies around specific skill
sets is the root of their problems.
- needing to move from making messages to
establishing community connections.
4.
5. 0
10
20
30
40
50
60
70
80
90
100
Share of firms
2002-2005
Share of job creation
2002 - 2005
Share of firms
2005-2009
Share of job creation
2005-2009
High growth firms Other
Source: ONS Business Structure Database Neon Nelly
Contribution of high growth firms to job creation
6. IPG
Source Revenue figuresAd Age 2014 Neon Nelly
4
2 7
1
3
5
6
Accenture
WPP
Omnicom
Publicis
Dentsu
Havas
“CMOs are looking for a partner which can bring new
ideas and innovative thinking to improve both the
customer and the employee experience.”
RoxanneTaylor, Accenture.
12. Empower
Southwest Airlines Cloud computing On line Retailer Technology
Focus on what
truly matters
It’s a mindset
Outsource the
peripheral stuff
Bendy rules
policy
Everyone is
accountable
Want a job title?
Go and work
somewhere else
Decision making
at lowest level
Staff
empowered to
have ideas
Self-organising
teams
Decentralised
power
Player-coaches
Customer
experiences not
organisation
function
Neon Nelly
13. Leadership and delegation
Presentation skills
Strategy Bootcamp
Dealing with difficult clients
Empowered teams
Network and collaboration
Prototype and test
Focus on customer value
Knowers Growers
Experiment
Neon Nelly
21. Legacy Agency
Operating System
New Agency
Operating System
Optimise the efficiency
of the model
Optimise the capacity of the
organisation to adapt
Retainer compensation based
on hourly billing
Hybrid models with project work
and value-based pricing
Source: Fitzpatrick 2014 Firestarter NYC Neon Nelly
22. Tell them what they want to hear
A culture revolution
Tell the
truth
Neon Nelly
23. We help marketing services agencies
build better business models
Contact us:
Lesley@neonnelly.com
Follow us on:
@Donnalelly