Where to from here?Where to from here?

But wait…it’s not the sameBut wait…it’s not the same

What’s happening, and why?What’s happening, and why?

And just what can we expect of the And just what can we expect of the future?future?

1.1. Changing forcesChanging forces

2.2. The new consumerThe new consumer

3.3. The marketer’s The marketer’s challengechallenge

4.4. The agency’s roleThe agency’s role

5.5. Some conceptsSome concepts

6.6. Making sense of itMaking sense of it

ClientsClients

Agency is a vendor not Agency is a vendor not a partnera partner

Project orientationProject orientation Fast responseFast response Low costLow cost Diminished loyaltyDiminished loyalty

Changing ForcesChanging Forces

TalentTalent

ShortageShortage FreedomFreedom EmpowermentEmpowerment Skill growthSkill growth RewardsRewards Diminished Diminished

loyaltyloyalty

Changing ForcesChanging Forces

FinancialFinancial

Commission declineCommission decline Project orientationProject orientation Price competitionPrice competition Client “procurement”Client “procurement” Growing overheadGrowing overhead Cash flow slowdownCash flow slowdown

Changing ForcesChanging Forces

TechnologyTechnology

Encourages new Encourages new competitorscompetitors

Promises are not Promises are not being fulfilledbeing fulfilled

ExpensiveExpensive Hard to applyHard to apply

Changing ForcesChanging Forces

Death of the mass marketDeath of the mass market

Steady decline of network Steady decline of network TVTV

Proliferation of specialized Proliferation of specialized mediamedia

Dialogic web Dialogic web communications and salescommunications and sales

New communications New communications technologiestechnologies

Changing ForcesChanging Forces

Expect personal relevanceExpect personal relevance

It’s all about meIt’s all about me Advertising filtersAdvertising filters One-to-one One-to-one Intrusion to Intrusion to

invitationinvitation Message coherenceMessage coherence

The New ConsumerThe New Consumer

Points of influencePoints of influence

Multiple receptorsMultiple receptors Advertising’s slice of Advertising’s slice of

the piethe pie Need for validationNeed for validation Third party Third party

endorsementendorsement The unexpectedThe unexpected

The New ConsumerThe New Consumer

Power shiftPower shift

From the senderFrom the sender The timeThe time The placeThe place The contentThe content

To the receiverTo the receiver InteractiveInteractive TiVoTiVo

The New ConsumerThe New Consumer

It’s not so easy anymoreIt’s not so easy anymore What outcomes are What outcomes are

expected?expected? Market share vs. profitsMarket share vs. profits Strategies vs. tacticsStrategies vs. tactics Brand building vs. Brand building vs.

immediate salesimmediate sales Cost vs. valueCost vs. value

The Marketer’s ChallengeThe Marketer’s Challenge

FearFear

Job retentionJob retention Risk aversionRisk aversion Action over intellectAction over intellect Senior churnSenior churn Mid-level churnMid-level churn

The Marketer’s ChallengeThe Marketer’s Challenge

Client side talentClient side talent

Credibility with Credibility with senior managementsenior management

Craft skillsCraft skills Judgment maturityJudgment maturity Time frame focusTime frame focus

The Marketer’s ChallengeThe Marketer’s Challenge

Advertising doesn’t work Advertising doesn’t work alonealone

Vehicle proliferationVehicle proliferation ““I’m the solution” I’m the solution”

vendorsvendors The magic bullet The magic bullet

syndromesyndrome Budget allocationBudget allocation

The Marketer’s ChallengeThe Marketer’s Challenge

OrchestrationOrchestration

Multiple instrumentsMultiple instruments Harmony Harmony Special skill setsSpecial skill sets Who?Who? How?How?

The Marketer’s ChallengeThe Marketer’s Challenge

The agency business modelThe agency business model

The tried and true…isn’t!The tried and true…isn’t!

The Agency’s RoleThe Agency’s Role

Historical baggage?Historical baggage?

Agency statusAgency status Partnership with clientsPartnership with clients Full serviceFull service Agency of recordAgency of record Bill paying Bill paying

accommodationaccommodation

The Agency’s RoleThe Agency’s Role

PolarizationPolarization

The holding The holding companiescompanies

Owner-managed Owner-managed agenciesagencies

The history of The history of innovationinnovation

Break-out agencies Break-out agencies

The Agency’s RoleThe Agency’s Role

??

What business are we inWhat business are we in

Ad makersAd makers Stuff factoriesStuff factories Solution architectsSolution architects Something elseSomething else

The Agency’s RoleThe Agency’s Role

??

RethinkingRethinking

What values will we provideWhat values will we provide What will it take to provide What will it take to provide

themthem How will we get rewardedHow will we get rewarded

The Agency’s RoleThe Agency’s Role

??

Customer centricityCustomer centricity

More than a buzz wordMore than a buzz word Media agnosticMedia agnostic Compensation Compensation

agnosticagnostic DichotomyDichotomy

Some ConceptsSome Concepts

Niche positioningNiche positioning

Meaning of your brandMeaning of your brand Known by the workKnown by the work Known by the clientsKnown by the clients The ability to say noThe ability to say no

Some ConceptsSome Concepts

FlexibilityFlexibility

Mirroring clientsMirroring clients Internal barriersInternal barriers Function vs. task organizationFunction vs. task organization Self-confident peopleSelf-confident people

Some ConceptsSome Concepts

FocusFocus

A mile wide and an inch A mile wide and an inch deepdeep

An inch wide and a mile An inch wide and a mile deepdeep

Rifle vs. shotgunRifle vs. shotgun Best of classBest of class

Some ConceptsSome Concepts

Talent drivenTalent driven

ShortageShortage Recruit, grow, retainRecruit, grow, retain Fewer/better strategyFewer/better strategy Mutual growth Mutual growth

expectationsexpectations

Some ConceptsSome Concepts

Low cost providerLow cost provider

Price is a fact of lifePrice is a fact of life Low cost doesn’t mean Low cost doesn’t mean

cheapcheap ValueValue Business creativityBusiness creativity

Some ConceptsSome Concepts

Exit servicesExit services

Perceived valuePerceived value CompetitivenessCompetitiveness Sunset mentalitySunset mentality Relentless pruningRelentless pruning

Some ConceptsSome Concepts

Exit clientsExit clients

BlasphemyBlasphemy Known by themKnown by them Reflect where you want Reflect where you want

to beto be Do it gracefullyDo it gracefully

QualityQuality

Expectation basedExpectation based Error horror storiesError horror stories The 2 point differenceThe 2 point difference Process quality Process quality

managementmanagement

Some ConceptsSome Concepts

AdhocracyAdhocracy

The military modelThe military model Task centricTask centric Inter-disciplinaryInter-disciplinary Self-assured Self-assured

peoplepeople

Some ConceptsSome Concepts

Strategic relationshipsStrategic relationships

AggregatorAggregator Build or buy?Build or buy? Core competencyCore competency High maintenanceHigh maintenance

Some ConceptsSome Concepts

EntrepreneurialismEntrepreneurialism

Sense of Sense of ownershipownership

Desire to excelDesire to excel Risk/rewardRisk/reward Measured by Measured by

market market

Some ConceptsSome Concepts

CollegialityCollegiality

Freedom & Freedom & responsibilityresponsibility

ProductivityProductivity LeadershipLeadership Modeling & Modeling &

mentoringmentoring

Some ConceptsSome Concepts

ObservationsObservations

What worked in the past will likely What worked in the past will likely not work well in the futurenot work well in the future

There is great opportunityThere is great opportunity There is also great riskThere is also great risk Creativity is needed in shaping the Creativity is needed in shaping the

future business model(s)future business model(s)

Making Sense of ItMaking Sense of It

When and howWhen and how

The time is nowThe time is now Rethink your agency’s business Rethink your agency’s business

modelmodel Choose the course that is best for Choose the course that is best for

youyou Align the agency with that courseAlign the agency with that course

Making Sense of ItMaking Sense of It

PredictionPrediction

The next ten years can be The next ten years can be the best of times for the best of times for

smaller, owner-managed smaller, owner-managed agenciesagencies

Making Sense of ItMaking Sense of It

Copyright 2005 Carlton Associates, Inc.