Three Steps to Transform Marketing Agencies
According to a global consulting firm PwC, most marketing agencies all over the world are using a no longer effective business model and should start making significant changes to catch up with their clients’ needs. They should take a much more integrated approach to all their operations. This article is an overview of the current situation in the industry and four models that can be implemented to create a next-generation marketing agency. Each strategy carries certain risks and requires overcoming some obstacles, but the advantages far outweigh the disadvantages and provide new opportunities. Over the last decades, most large agencies have taken over numerous smaller ones in spheres like digital, media planning and buying, branding, and creative services. Despite being financially accountable to their holding company, these subsidiaries act independently and even compete with each other. There is nothing wrong with competition; it helps drive progress and generate the best ideas. However, today marketing agencies have enough external rivals to contend with, such as platforms like Facebook and Adobe, or in-house agencies established by some companies. For instance, Procter & Gambe created its own marketing department and managed to save $750 million on advertising and production costs in 2018. Bringing some… Read more »
