The Agency Model About To Expire?
October 19, 2011 by Kevin Michael Gray
Today's featured article comes from Mediabizbloggers.com and it discusses some of the relevant challenges the current agency model is up against. What do you think about the agency model? Read more below and chat with us via twitter.
By Uwe Hook from mediabizbloggers.com
I've met with a few CMO's and agency heads in the last few weeks and was astonished how painful relationships between agencies and brands have become. This is not just a feeling, it's a major data point in a survey released by RSW/US: A client's look ahead at agencies.
I do recommend downloading the free report but in case you're pressed for time, here are two facts that caught my eye:
- Only 55% of marketers state they would consider using their primary agency again if they were to put up their account for their review.
- A marketer's tendency to look for a new firm is driven by general lack of satisfaction with an agency's creative, their strategic thinking, or their general lack of proactivity. (…) "…"lack of proactivity" was one of the primary reasons given for finding a better agency partner. They were with a much larger firm and felt, because of their "small fish in a big pond" status, they weren't getting the attention they needed – resulting in their desire to look for a mid-size Agency to better serve them.
The challenge for agencies
When the first agents appeared, the mission was very clear: Purchase advertising space on billboards/print on behalf of businesses.
Over time, brands wanted more: produce remarkable advertising that increases sales. To answer that demand, agents started to hire illustrators and copywriters. They transformed into agencies. And customers became clients. This hasn't changed much over the decades.
The objectives of clients changed dramatically. It used to be enough to produce advertising that produces sales. We give you a coupon, you buy the product. You get an invite to test-drive a car, you head to the showroom.
The market changed over time. Everything became more complex and complicated – more brands, more media, more channels. Suddenly, you had to spend more to get some kind of lift. The placement game turned into an arms race.
No matter what: Clients still want to see increased sales. As they should.
READ FULL ARTICLE
http://www.mediabizbloggers.com/uwe-hook/The-Agency-Model-About-to-Expire---Uwe-Hook.html
