The document discusses the evolving structure of advertising agencies. It notes that traditional full-service agency models are being replaced by more specialized structures. Some agencies are attempting to offer all services again under a "full-service" label through convergence, while others prefer divergence into specific areas like digital, creative, or media. Clients now use different models like best-of-breed, single source, or a lead agency to integrate services. The ideal agency structure is debated, as agencies struggle to define new business models to remain relevant in a fragmented media landscape.
5. “An agency should be agile, forward thinking
and engaged in delivering growth by deploying
a wide range of tools and people, a far cry from
the sausage-factory it was 10 years ago. We
might be making software, content, binding
books, or creating theatre.
An agency engages itself in a diverse community
of creative people, from coders to copywriters.
It should be a place where there’s space for
marketing judo, where business conventions are
outmaneuvered and overthrown.”
Robert Harwood-Matthews
President, TBWA/Chiat/Day New York
From “Marketers Explain ‘What Is An Agency,’” Ad Exchanger
6. A short history of agency models
① The full-service model
② Unbundling creative and media
③ Further unbundling and specialization;
the client as integrator
④ ?
7.
8. Many agencies are reacting to the new multichannel marketplace by
attempting to become a new version of “full service” all over again
9. Media agencies as creative agencies
Convergence?
Media companies as agencies
Consulting firms as agencies
Production companies as agencies
10. Digital agencies as “full-service” agencies
PR firms as “full-service” agencies
Holding companies as “full-service” agencies
Convergence
-- or --
Divergence?
Convergence?
11. “So here we are with traditional agencies struggling
to become digital agencies and digital agencies
struggling to become traditional agencies.
It just another big convergence mess and the losers
for now are the clients. On both sides you have
partially constructed solutions: brands suffer from
traditional agencies that are renovated with a digital
coat of paint but doing what they've always done,
and from digital agencies with incomplete
organizations and inexperienced traditional skills.”
Tony Quinn
Chairman, Society of Digital Agencies
From “Marketers Explain ‘What Is An Agency,’” Ad Exchanger
12. “I wish that the agencies would stick to
what they are good at. They try to do
everything, and they would be better
served to narrow their focus.
You can’t do everything, and if you try to do
everything, you do nothing. It drives me
crazy when the agency is trying to pitch you
every single service available.”
What clients think
28. How do clients access your services?
Best-of-Breed
Model
Single Source
Model
Service Integrator
Model
Clients you work with
in this model (mostly)
Clients you work with
in this model (mostly)
Clients you work with
in this model (mostly)
72. Where do you play on the value chain?
Client
% of income
related to
PRODUCT
% of income
related to
BRAND
% of income
related to
MARKETING
% of income
related to
EXPERIENCE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
73. What classes of media do you utilize?
Client
% of income
related to
PAID
% of income
related to
EARNED
% of income
related to
OWNED
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
74. Are you focused on content or channels?
Client
% of income related to
CONTENT
% of income related to
CHANNELS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
75. Are you about ideation or execution?
Client
% of income related to
IDEATION
% of income related to
EXECUTION
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
76. Mapping your current business model
1. How clients access your services
2. What media classes you utilize
PRODUCT
BRAND
MARKETING
EXPERIENCE
PAID
EARNED
OWNED
CONTENT
CHANNEL
IDEATION
EXECUTION
3. Focused on content or channel
4. About ideation or execution
5. Where you play on the value chain
BEST OF
BREED
SINGLE
SOURCE
SERVICE
INTEGRATOR
77. “If we don’t kill our old
business models, someone else
will. But if we are ruthlessly
curious, learn relentlessly, and
fail harder, we get to reinvent
the business of persuasive
communication for the
connected age.”
Renny Gleeson
Weiden+Kennedy