How to deconstruct your agency's business model to better understand the value you deliver to clients and better position for firm to work for the types of clients you really want.
5. âAn agency should be agile, forward thinking
and engaged in delivering growth by deploying
a wide range of tools and people, a far cry from
the sausage-factory it was 10 years ago. We
might be making software, content, binding
books, or creating theatre.
An agency engages itself in a diverse community
of creative people, from coders to copywriters.
It should be a place where thereâs space for
marketing judo, where business conventions are
outmaneuvered and overthrown.â
Robert Harwood-Matthews
President, TBWA/Chiat/Day New York
From âMarketers Explain âWhat Is An Agency,ââ Ad Exchanger
6. â ⯠The full-service model
âĄâŻ Unbundling creative and media
â˘âŻ Further unbundling and specialization;
the client as integrator
âŁâŻ ?
A short history of agency models
7.
8. Many agencies are reacting to the new multichannel marketplace by
attempting to become a new version of âfull serviceâ all over again
9. Media companies as agencies
Production companies as agencies
Convergence?
Consulting ďŹrms as agencies
Media agencies as creative agencies
10. PR ďŹrms as âfull-serviceâ agencies
Digital agencies as âfull-serviceâ agencies
Convergence?
Convergence
-- or --
Divergence?
Holding companies as âfull-serviceâ agencies
11. âSo here we are with traditional agencies struggling
to become digital agencies and digital agencies
struggling to become traditional agencies.
It just another big convergence mess and the losers
for now are the clients. On both sides you have
partially constructed solutions: brands suffer from
traditional agencies that are renovated with a digital
coat of paint but doing what they've always done,
and from digital agencies with incomplete
organizations and inexperienced traditional skills.â
Tony Quinn
Chairman, Society of Digital Agencies
From âMarketers Explain âWhat Is An Agency,ââ Ad Exchanger
12. âI wish that the agencies would stick to
what they are good at. They try to do
everything, and they would be better
served to narrow their focus.
You canât do everything, and if you try to do
everything, you do nothing. It drives me
crazy when the agency is trying to pitch you
every single service available.â
What clients think
28. Clients you work with
in this model (mostly)
Clients you work with
in this model (mostly)
Best-of-Breed
Model
Single Source
Model
Clients you work with
in this model (mostly)
Service Integrator
Model
How do clients access your services?
42. Brand Development and Business Strategy Firm
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution
72. Client
% of income
related to
PRODUCT
% of income
related to
BRAND
% of income
related to
MARKETING
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
Where do you play on the value chain?
% of income
related to
EXPERIENCE
73. Client
% of income
related to
PAID
% of income
related to
EARNED
% of income
related to
OWNED
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
What classes of media do you utilize?
74. Client
% of income related to
CONTENT
% of income related to
CHANNELS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
Are you focused on content or channels?
75. Client
% of income related to
IDEATION
% of income related to
EXECUTION
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
Are you about ideation or execution?
76. SINGLE
SOURCE
BEST OF
BREED
SERVICE
INTEGRATOR
2. What media classes you utilize
PAID
EARNED
OWNED
3. Focused on content or channel
CONTENT
CHANNEL
4. About ideation or execution
IDEATION
EXECUTION
5. Where you play on the value chain
PRODUCT
BRAND
1. How clients access your services
MARKETING
Mapping your current business model
EXPERIENCE
77. âIf we donât kill our old
business models, someone else
will. But if we are ruthlessly
curious, learn relentlessly, and
fail harder, we get to reinvent
the business of persuasive
communication for the
connected age.â
Renny Gleeson
Weiden+Kennedy