The Changing Agency Landscape - 4A's...core marketing goals (cont.) Add value. Build loyalty. Build brand. Drive leads/sales. Identify adjacent innovation. Business transformers

The Changing Agency

Landscape

Jim Nail, Principal Analyst

September, 2012

Agencies must differentiate on

solving marketing problems,

not on technologies or

channels.

Theme

© 2012 Forrester Research, Inc. Reproduction Prohibited

Agenda

What is an interactive agency? What is an agency??

The future is mediator, not agent.

What’s your future?

3

Every kind of agency “does digital”

All agencies claim significant digital expertise: Digital Creative

4%

4%

6%

86%

Service not offered

Outsourced service

Complimentary service

Core service

To what degree does your agency currently offer each of the

following services: Digital Creative

All Agencies

Source: Forrester August 2011 North American Agency Landscape Online Study

Base: 98 Agencies

All agencies claim significant digital expertise: Social Media Strategy & Execution

1%

3%

10%

86%

Service not offered

Outsourced service

Complimentary service

Core service

To what degree does your agency currently offer each of the

following services: Social media strategy & execution

All Agencies

Source: Forrester August 2011 North American Agency Landscape Online Study

Base: 98 Agencies

Headlines

Digital doesn’t define an agency, it enables it

Digital agencies present a challenge, but traditional agencies still

lead brands

Digital agencies face an identity crisis

Digital forces agency roles to evolve in more dramatic ways


What is an interactive agency?

8


What is “digital”?

9

© 2012 Forrester Research, Inc. Reproduction Prohibited 10

What is “digital”? (cont.)


Digital or traditional?

11


“It’s not about having a digital strategy.

It’s about having a connection strategy in a

digital world.”

Maarten Albarda,

VP, Global Connections

Anheuser-Busch InBev


It’s decision time

• What they do AND what they don’t do

• How to compete

• Who their client of the future will be

• How to explain what they do in a relevant, credible, differentiating

way

In the next 24 months digital agencies will have to decide:




What is an interactive agency?




Digital disruption and how it is changing agencies

The future is mediator, not agent.

Resolution Media messaging

20

Agenda


A firm that blends strategy, creative, technology, media, and data offerings to connect brands and their audiences in ways that balance satisfying

customer needs against achieving business goals

Value exchange mediator

21


Value exchange mediators address four core marketing goals (cont.)

Add value.

Build loyalty.

Build brand.

Drive leads/sales.

Identify adjacent innovation.

Business transformers

Em

bed

emo

tion

in

to ex

pe

riences.

Ex

pe

rie

ntia

l b

ra

nd

er

s

Lead in-market consumers through discover/explore.

Demand generators

Co

nd

uct

alw

ay

s-o

n

con

ver

sati

on

s.

Au

die

nc

e

en

ga

ge

rs

22


Core skills

Consumer insight

Business strategy

New product/service development

23

Barriers

Harmonize “soft” human

empathy skills with “hard”

technology skills.

“We aspire not to even be a communications agency. We make things that make the product more useful and valuable.”

Loren Grossman

Chief Strategy Officer,

RAPP

Business transformers MEDIATORS THAT DEFINE POTENTIAL OR REDEFINE THE VALUE PROPOSITION


“With digital, you can change behavior before you change attitudes.”

24

Experiential branders BALANCE DIGITAL INTERACTIONS WITH MORE EMOTIONAL RESONANCE

Core skills

Cross-channel experience

Multichannel messaging

Communications strategy

Barriers

Egalitarian culture

Ideas emerge from any area.

Colin Kinsella

CEO,

Digitas


MEET CONSUMERS WHERE THEY ARE; GUIDE THEM THROUGH LIFE CYCLE

Demand generators

Core skills

Data

Optimization

Analytics

Barriers

Inject data-informed human

judgment into algorithmic

processes.

Robert J. Murray

Global Chief Executive Officer,

Resolution Media

“We target audiences that are ready to act and find inventive ways to turn intention into action.”


Audience engagers CONVERSE WITH THE ALWAYS ADDRESSABLE CUSTOMER

Core skills

Customer data

Content: strategy, creation, and

integration

Barriers

Break transaction-centric

mindset to support ongoing

conversations.

“Our goal is to engage with the whole customer, not just as buyers and users of brands but as creators, participants, critics, champions.”

Stewart Pearson

Chief Client Officer,

Wunderman

Thank you Jim Nail

[email protected]

mailto:[email protected]

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The Changing Agency Landscape - 4A's...core marketing goals (cont.) Add value. Build loyalty. Build brand. Drive leads/sales. Identify adjacent innovation. Business transformers