Changing Face of the Ad Agency

The traditional structure of the agency is not working. There is rapid expansion of the digital footprint. The new model of the agency must be lean, agile, capable and responsive. An integrated structure of collaborative relationships has emerged. These days digital and CRM units are acquired. They must be integrated to the main agency. Though there are tectonic shifts, still the ideas occupy the centre stage in creating values. Even today clients seek ideas that can help them grow in turbulent environment. It is a volatile, uncertain, complex and ambiguous (VUCA) world.

Strategic planning including data and digital, ideation and creativity, business development and production co-ordination are as usual there. They are supplemented by special purpose teams. There is a team of subject matter experts which acts as an advisory board. Production services can be outsourced.

The output is going to get increasingly non-standard. Anywhere on the value-chain, there could be strategic intervention by the agency.

It is wrong to believe that leaders are created naturally. There is talent crunch. Manpower will have to be sourced from diverse pools — art schools, business schools, competing business organisations and elsewhere. These leaders require nurturing and grooming.

Commission system is sought to be replaced by fee system. It is promoted as fairer way of remuneration. In many cases, it has degenerated as a cost-saving measure. There should be more higher level or senior level engagement. Remuneration should move upwards. It should be enough to sustain talent and invest in R & D capabilities.

Beyond traditional media, there are possibilities of conversations, messaging and transactions. These days AI is available to analyse data. Storytelling is getting richer. Many more touch points. Establishing a brand is a huge challenge. It is a tightrope walk to balance the budget between conversations and media sweet spots. There are opportunities of monetizing personalisations. Media channel planners will help optimisation of the touch points.

These are early days for the new model of the agencies. It will take some time to settle down. Then it will work as well-oiled machine. Emerging models will crystallize into lasting structures over a period of time.

print

Leave a Reply

Your email address will not be published. Required fields are marked *