By Andrew Dougan, Marketing & Strategy at allpoints
Recently I was fortunate to attend this year’s The Drum Live.
With a rich agenda, the day was packed with some truly inspiring guests, an abundance of insights, and some killer case studies but for me, the highlight has to be the opening debate on ‘The advertising model is dead’.
With a powerful, stellar lineup for both sides, masterfully adjudicated by Andrew Tindall – SVP Global Partnerships, System 1, and an audience roughly consisting of 50:50, agency: clients, this proved to be a hotly debated session with strong arguments from both sides.
For:
- Raffi Salama – CEO, Passionfruit
- Mary Keane-Dawson – Creative legend, entrepreneur, and business mentor
Against:
- Dom Burch – MD, Why Social
- Laura Jordan Bambach – Founder and CCO, Uncharted
Strong arguments from the For team, included;
- The rise of in-housing, provides faster, easier-to-access creative talent, without the unnecessary layers that often come with agencies.
- A feeling that due to margin pressure and perceptions of value, creative talent and strategic expertise within agencies (particularly the larger holding groups) has become commoditised.
- And a view that many agencies are struggling to adopt to the changing media landscape, particularly when it comes to innovation, speed to market and an always on consumer.
These were powerfully counter-argued by the against team:
- There is an abundance of creative talent that don’t want to work client side, many of whom have side hustles and interests that they feel will be compromised outside of an agency environment.
- Many also feel they will miss out on the multi-brand, cross-sector experience they are exposed to working within an agency.
- Emerging agencies like Uncharted have been looking at new ways to bring together creative talent to provide faster solutions, better value, and more impact for their clients.
- Agencies are increasing their budget allocations for areas such as R&D and training to ensure that they are able to provide their clients with future-first thinking, expertise and solutions.
Conclusion
Clearly the demand for creativity has never been higher, so how can agencies adapt and ensure they are not only fighting fit but primed to grow……
- Recognise the value of tapping into and leveraging creator and creative communities, no matter where they are and how niche they may seem – the power of the collective is unbeatable!
- Leverage innovation and tech platforms to mobilise and empower these communities
- Understand that true value can be delivered through many forms. Think of access to curated, expert partnerships, agency R&D programmes, training initiatives and proprietary tech.
- And in terms of remuneration considering options like performance-related pay, equity exchange and consultancy-style services can go someway to moving beyond and relying on the agency legacy model of day rates.
So we are left with a clear view that the agency model is far from dead. It’s battered and bruised but now moving from survival mode into fit-for-purpose mode.
So just as Rocky did (from Rocky IV era), having taken a severe beating at the hands of Ivan Draco, the agencies that will thrive moving forward are the ones who adapt and find new ways to meet the evolving needs of brands and the expectations of an emerging generation of CMOs and marketing teams.
Those that do, not only survive a few more rounds but can become true champions!