What Agencies And Clients Must Do Differently To Succeed: Forbes

What Agencies And Clients Must Do Differently To Succeed: Forbes

This story was originally published by

This piece from Forbes makes for sombre reading. While it's not suggesting agencies are dying, Alexei Orlov, global CEO of Rapp, says there's an element of fear within agencies, meaning they don't have the right conversations with clients. It ends up with clients talking at agencies, rather than with them. He's got some tips though as a reward for making it to the end of the article.

SHARE
THIS



The shift to analytics-driven marketing and technology-enabled business growth has changed the nature of advertising agencies.

The era of “Mad Men,” where advertisers primarily focused on TV, radio, and print advertising is gone. In its place are specialists who focus on social media, digital media, and traditional media. And, there are behemoths who attempt to pull all disciplines into a single house.

On top of it, the traditional agency model was built on a revenue generation approach that included media placement; while there were different models, the most common one was based on a percentage of the media placed (e.g., 15% of the value of media placed). That model is being disrupted as programmatic media buying takes hold and clients push for changes in the agency compensation model.

With expectations of agency performance increasing (i.e., linking agency performance to client in-market performance), the agency compensation model being disrupted, and new, leaner competitors cropping up, one could argue that the golden years of agencies are over. To better understand this shift, I recently talked with Alexei Orlov, Global CEO of Rapp. What makes Orlov’s perspective interesting is that, having spent most of his career on the client side (was the CMO of Volkswagon, China prior to Rapp), he provides unique insight on the future of agencies, what agencies need to do to better meet client expectations, and how clients can get more out of their agencies.

Read the full article here.

Latest News

RedBalloon Urges Shoppers To ‘Break With Tradition’ This Christmas
  • Advertising
  • Campaigns
  • Marketing

RedBalloon Urges Shoppers To ‘Break With Tradition’ This Christmas

Online experience retailer RedBalloon is urging consumers to ‘break with tradition’ this Christmas and rethink their approach to gifting, with a million-dollar campaign set to drive 1.6 purchases every minute between now and December 25. RedBalloon General Manager Matthew Cavalier said everyone has their own traditions at Christmas. The brand’s creative territory is about celebrating […]

Rimmel London & The Cybersmile Foundation Take On Beauty Cyberbullying
  • Advertising
  • Campaigns

Rimmel London & The Cybersmile Foundation Take On Beauty Cyberbullying

Rimmel London has partnered up with The CyberSmile Foundation to take a stand against Beauty Cyberbullying. Launched on Monday via a global campaign #IWillNotBeDeleted, fronted by Rita Ora and Cara Delevigne with a cast of other individuals who have been affected by this issue. In 2017, Rimmel London undertook a global research study to understand […]

Jeep & Lumo Energy Launch OOH Campaigns Via oOh!media
  • Advertising
  • Campaigns
  • Media

Jeep & Lumo Energy Launch OOH Campaigns Via oOh!media

Jeep Australia and Lumo Energy are among an increasing number of brands creating impact and driving greater audience engagement through the use of special builds and innovative lighting on classic out of home billboards. The two builds, developed and executed by oOh! include strategically placed lighting which appears to increase in luminance as the night gets darker, to capture the attention […]