Tag Archives: advertising agency

Better Ways for Marketing People to Get Paid

As Tim Williams, author of TAKE A STAND FOR YOUR BRAND explains on this week’s episode of BRANDING BUSINESS (hosted by Ryan Rieches of OC’s biggest branding firm RiechesBaird here on www.OCTalkRadio.net), “for people who are supposedly creative, we don’t spend much time considering alternative ways to get paid beyond some hourly rate….as if creative work and manual labor were somehow both the same”.

Hear his ideas on alternative ways in which ad agencies, marketing people and other creative talent can get paid that more closely matches their corporate contribution and the true value of their work.  Definitely a conversation starter.

How to you pay for creative ideas in your company?

The Agency of the Future

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By Uwe Hook  Courtesy of IMediaConnection

A few weeks ago, news broke that ZenithOptimedia U.K. will be going through a restructuring. There are rumors that Starcom MediaVest Group might also shuffle things around in the U.K. And this is just the beginning: Every week we learn about marketing professionals coming and going, departments being dissolved, departments being merged or created. In addition, new agency models are coming to life, from the crowd-sourced to the brand innovation studio for the 21st century.

What will it take for agencies to prosper in the new marketing reality?
As the marketing industry continues to mature, and as new channels and platforms need our attention each and every day, it’s imperative for us to contemplate the structure of the agency of the future. Our livelihood will depend on it because not being ready for the demands of the future will likely lead to the demise of your agency.

Office mansion or garage? Neither.
Just this month, Bloomberg and Fast Company painted a black and white picture of the future of advertising agencies. Bloomberg believes in big agencies:

“The little hot shops, says Lubars, who are thumping their chests and declaring the end of mass marketing and the death of the Big Dumb Agencies, do so as a business posture, an attitude for journalists, and a sales pitch to clients. ‘They don’t believe a word of it,’ he says.

“What he sees instead is an evolution, firms heading to the same place from different directions. Technologically able marketers are trying to scale up into full-service agencies; and full-service agencies are mastering the new channels and a world with 6 billion individual markets. ‘They’re racing to figure out what an idea is,’ says Lubars. ‘We’re racing towards technology. It’s easier to pick up the technology. That’s why we got there first… They are desperate to take down the agencies that are doing it now.'”

Meanwhile, Fast Company predicts Armageddon for holding companies:

“In its fight for survival, the advertising industry is at war with itself. Generalists are competing with specialists. Interactive shops are vying to become full-service agencies, while traditional shops are yearning to become digitally integrated. ‘The Great Race,’ as Forrester Research dubbed it in March, drives a more intense competition over an already shrinking pie, and there won’t be room for everyone. En route to the center, agencies are chasing one another to the bottom. ‘I spoke to a high-level CMO the other day,’ says Profero’s Reitkopf. ‘She said, ‘I work with a holding company’s promotions company, its social-marketing company, its response-marketing company. Every time we’re in the room together, it’s fine, but the minute I walk out to get a cup of coffee, someone will follow me and tell me they can do what the other agencies do for cheaper.’ Adds Harley CMO Richer: ‘Agency networks supposedly combine all these experts together on your behalf, but it only really happens when the business is at risk of walking out the door. Before then, these creative entities are locked off in separate P&Ls. They’re not built to solve clients’ problems, they’re built to satisfy individual P&Ls.’

“That may be a vision for the industry as a whole. With all the defections of top agency talent over the past year — Alex Bogusky from Crispin, Gerry Graf from Saatchi, Kevin Roddy from BBH — it’s easy to imagine a new advertising ecosystem of pods built around industry stars who have left their lumbering institutions behind. The holding companies will still exist, but around them could emerge a chaotic pattern of startups, independent talent, and connectors who thrive with minimum overhead. That kind of industry would be a fraction of the size of the current one. It would create opportunities for the most talented and hurt everyone else. It would be harder work, with fewer assistants and fewer million-dollar paydays. But this smaller business would be aloft on its new creative potential rather than sinking under the weight of its past.”

As usual, the truth is somewhere in between: The likely solution is that successful agencies of the future will have a core group of professionals. This core group will accommodate both the size of the brand and the scope of engagement. Account management will continue to be crucial for client retention and, more importantly, better understanding the heart and soul of the brand. Small agencies often have challenges becoming part of the organization, while bigger agencies often see account management as being account servants. The core group will consist of highly paid professionals from all facets of life to serve the brand better and deliver real value based on insights.

TO READ THE FULL ARTICLE, CLICK HERE.