How marketing services agencies can build growth models
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Transcript of How marketing services agencies can build growth models
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The Future of Agencies
GROWTHNeon Nelly
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Demographic and social change
Shift in economic powerRapid urbanisation
Resource scarcityTechnological breakthroughs
Neon Nelly
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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.2008
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Share of firms 2002-2005
Share of job creation
2002 - 2005
Share of firms 2005-2009
Share of job creation
2005-2009
0
10
20
30
40
50
60
70
80
90
100
High growth firms OtherSource: ONS Business Structure Database Neon Nelly
Contribution of high growth firms to job creation
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IPG
Source Revenue figures Ad Age 2014 Neon Nelly
4
2 7
1
3
5
6Accenture
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.” Roxanne Taylor, Accenture.
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IPG
Neon Nelly
5
2 7
1
4
6
3
AccountantsConsultants WPP
Omnicom Publicis
Dentsu
Havas
2018?
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Commercial in Confidence Neon Nelly© 2014 Woodmansterne publications
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Source: Future Foundation/IPA. The future of Marketing and Agencies 2025Neon Nelly
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FasterCheap
erBetterNewer Neon Nelly
Add Value
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InnovateCollaborate
Volume & Standardisation
Neon Nelly
Thinkers & Doers
100% ThinkersHead honcho
Even less head honcho
Even less head honcho
Even less head honcho
Not so head honcho
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EmpowerSouthwest 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
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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
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Commercial in Confidence Neon Nelly
Chaos often breeds life,when order breeds habit
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Commercial in Confidence
Freemium Model
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Internal StructureExternal
Ways of working
New skills
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Client Agency
Neon Nelly
Transactional
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Neon Nelly
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Stability to maintaincurrent rigid bounded model
Flexibilitythrough a collaborative evolving model
AgencyClient
Neon Nelly
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Neon Nelly
Advocates
Influencers
Workforce
Customers
Appdevelope
rs
Consultants
Client Ecosystem
In the system means growth opportunities
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Legacy AgencyOperating System
Organise by role for repeatability and process
Organise for the capacity to plug into networks/client programmes
New AgencyOperating 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
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Tell them what they want to hearA culture revolution
Tell the truth
Neon Nelly
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We help marketing services agencies
build better business modelsContact us:
[email protected] us on:@Donnalelly