Agency 2.5

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Some of the key concepts from Ignition's workshop "Agency 2.5: How Agencies Are Transforming for the Future." The complete workshop is available by contacting Tim Williams at

Transcript of Agency 2.5

  • Agency 2.5 How Agencies Are Transforming for the Future Presented by Tim Williams ignition consulting group A selection of key concepts from
  • Agencies? Agencies are at an Inflection Point
    • Fragmentation and addressability of media and audiences
    • Democratization of creativity
    • Inexpensive and instantaneous production
    • Online interconnectedness
    • Digitization of everything
    • Brand advocacy in place of brand management
    • Pricing pressures due to oversupply of providers
    • And
  • An inflection point is a time in the life of a business when its fundamentals are about to change. Inflection points can be caused by technological change, but are about more than technological change. They can be caused by competitors, but they are about more than just competition. They are full-scale changes in the way a company or industry does business.
  • The Last Advertising Agency on Earth
  • Media Production houses Client in-house resources Crowdsourcing Agencies Management consultancies Brand consultancies Marketing research firms Competition both upstream and downstream
  • Media companies becoming agencies
  • Marketers that expect to do more business directly with media companies: 52% Marketers that expect to do more business with agencies: 27%
  • Becky Saeger Chairman, Association of National Advertisers (ANA) If I were an agency, I would be really worried about being disintermediated. More and more, agencies are almost in the way sometimes.
  • Ideation Execution Production de-coupling Another way agencies are losing leverage in the relationship
  • Crowdsourcing as competition
  • Future roles for agencies? Media brand owners Content collaborators Content curators Program producers Network creators Data providers Data aggregators Rights managers Brand guardians Source: The Future Foundation
  • Interrupting Imperatives for transforming the agency Engaging
  • Exposure Engagement Reach Frequency Cost per thousand Attentiveness Receptivity Buzz potential Efficiency Effectiveness
  • The Best Job in the World
  • Instead of reaching 80 million people, lets reach a million in your target and spend 10 minutes with them. Michael Lazerow, CEO
  • Implications and opportunities for marketing organizations
    • We need to change our language.
    • Engagement requires a new set of metrics.
    • Learn how to engage small audiences for a long time instead of engaging large audiences for a short time.
  • Mass media as channels Imperatives for transforming the agency Everything as channels
  • PAID EARNED OWNED Three main classes of media
  • PAID
  • PAID Media advertising
  • PAID The store as media
  • PAID The physical world as media
  • EARNED Traditional mass media
  • EARNED Blogs as media
  • EARNED Viral videos as media T-Mobile Dance
  • OWNED The brands online properties as media
  • The brands online properties as media OWNED
  • The product itself as media OWNED
  • PAID EARNED OWNED Instead of this this.
  • Implications and opportunities for marketing organizations
    • Plan touch points and communications channels, not media.
    • Start with owned, then earned, then paid channels.
    • Better yet, help your clients build the marketing into the product.
  • Brand perception Imperatives for transforming the agency Brand experience
  • Agencies are missing revenue opportunities by stopping at pre-purchase
  • Lee Clow TBWA/ChiatDay The best ad we ever did for Apple is the Apple Store.
  • Parker Stoner, Swanson Russell Associates
  • Behavioral Economics: A new strategic imperative for agencies Rory Sutherland, President Institute of Advertising Practitioners (IPA), Vice Chairman, Ogilvy, London Hundreds of agencies have developed models for how advertising works. Whats needed now is for agencies to base their business on how people work.
  • An advertising campaign to persuade mothers that chicken soup is a good for colds and flu Behavioral Economics Placing chicken soup next to the cold remedies. -- or --
  • Agencies should be in the business of Choice Architecture Behavioral Economics
  • Implications and opportunities for marketing organizations
    • Help optimize how customers experience the brand, not just how they perceive it.
    • Help your clients move further up the effectiveness hierarchy.
    • Become expert in brand interactions, not just brand messages.
  • Consumers as audience Imperatives for transforming the agency Consumers as media
  • Which is your mental map?
  • What advertisers spend on media What consumers spend on media
  • Today, the average 14-year-old can create a global television network with applications that are built into her laptop. Randall Rothenberg CEO, Interactive Advertising Bureau
  • United Breaks Guitars Consumers as media
  • Consumers as media
  • Customer service is the new media department. Pete Blackshaw
  • Implications and opportunities for marketing organizations
    • Understand the not just the demographics but the technographics of your audience.
    • Make it easy to share and distribute your content.
    • Proactively plan for consumers as media.
    • Realize that your brand will never have enough money to outspend consumers.
  • Persuasion Imperatives for transforming the agency Utility
  • Utility instead of persuasion
  • Utility instead of persuasion
  • Utility instead of persuasion
  • Implications and opportunities for marketing organizations
    • Put more effort into helping consumers instead of selling them.
    • Look at utility as an opportunity to develop some of your own intellectual property.
  • One-to-many Imperatives for transforming the agency One-to-one
  • The ideal agency of the future? +
  • Mass Messaging High volume mass communications with imprecise targeting with little or no segmentation or personalization Mass Customization Messages deployed based on dynamic analysis of real-time behavior across channels
  • Broadcasting Narrowcasting Spending a lot of money to produce a little content to reach a lot of people. Spending a little money to product a lot of content to reach a few people.
  • Narrowcasting Will It Blend? http://
  • Implications and opportunities for marketing organizations
    • Soon all media will be both searchable and addressable.
    • The new agency skill set is mass customization in place of mass messaging.
    • Agencies can package and sell data analytics as a service.
    • Precise addressability will allow more niche brands to advertise, creating more opportunities for agencies.
  • Digital department Imperatives for transforming the agency Digital competency
  • Digital spending will double in the next five years but advertising budgets wont. Digital marketing is the new mainstream marketing.
  • From great in traditional to great in digital
  • Marketers who use the same agency for both mass and digital are more satisfied
  • Verbal Designer Visual Designer THE NEW CREATIVE HYDRA Experience Designer Experience Design (XD) User Experience (UX) Information Architecture (IA)
  • Implications and opportunities for marketing organizations
    • Digital must be at the core of the agency business model, not an add-on.
    • There will soon be no difference between traditional agencies and digital agencies.
    • Being digital means technologists must join creative and media teams.
    • An increase in digital work will produce more agency income, not less.
  • Controlled communications Imperatives for transforming the agency Open conversations
  • Broadcast advertising Print advertising Out of home advertising Promotions Events Direct mail Trade shows Product placement Media relations Community relations Employee relations Investor relations Crisis communications Media training Sales training Search engine marketing Online display advertising Sponsored online content E-mail marketing Interactive kiosks Mobile marketing Video gaming Website development Search engine optimization Online product reviews Online endorsements Blogs Microblogging Podcasts Opt-in online content Webinars Social media Offline Online Non-Paid Paid
    • Instead of just creating brand advertising, a CCO builds a community around the brand using multiple channels.
    • Instead of just sending messages, the CCO monitors and responds to the community.
    • Instead of focusing on pre-sale activities and seeing areas like service and support as someone elses job, a CCO follows what consumers are telling the brand and each other.
    Chuck Brymer, CEO DDB Worldwide The Nature of Marketing
  • Social media as an agency service
    • Social media audit
    • Helping to develop social media policies and procedures
    • Ambassador training
    • Submitting to onlin