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.

Please login with linkedin to comment

Australasian Catalogue Association content future of advertising Is He Asahi LinkedIn

Latest News

person using mobile application on smartphone, abstract close up of hands
  • Technology

Mobile Advertising Company Kargo Announces New Hires Following H1 Growth In APAC

Kargo has today announced several major growth milestones across the APAC region for the first half of 2021, more than doubling H1 revenue year-over-year with 115 per cent growth. Kargo also ran 41 per cent more campaigns in the region than in H1 2020 and the average campaign size increased by 32 per cent over […]

Hootsuite Acquires Conversational AI Platform Heyday
  • Technology

Hootsuite Acquires Conversational AI Platform Heyday

Hootsuite has today announced its acquisition of Heyday, a Montreal-based conversational AI platform that enables brands to deliver personalised customer experiences through 1:1 messaging conversations. Commerce is rapidly moving onto social and messaging platforms. Hootsuite, a pioneer in the social media management category, has the largest customer base in the industry and with this acquisition […]

Officeworks Partners With Canva
  • Campaigns

Officeworks Partners With Canva

B&T's a huge fan of the Officeworks shopping experience, but just throwing it out there about possible $1 hot dogs?

PRIA Announces National Conference
  • Marketing

PRIA Announces National Conference

Public Relations Institute announces national conference. Sadly, Roxy won't be speaking on unwanted doorstep excreta.

EATIVITY Founder Moira Geddes Becomes First-Ever Micro-Publisher To Take Part In IAB Mentorship Program
  • Technology

EATIVITY Founder Moira Geddes Becomes First-Ever Micro-Publisher To Take Part In IAB Mentorship Program

Moira Geddes, founder and director of independent food publication EATIVITY has been handpicked by IAB Australia to become the first ever micro-publisher to take part in its Mentorship Program, highlighting the important role that specialised custom digital sites play within the country’s media landscape. EATIVITY aims to keep consumers in the know and help small […]

Hivestack Appointments Ichiro Jinnai As President, Japan
  • Advertising

Hivestack Appointments Ichiro Jinnai As President, Japan

Hivestack, the global ad tech leader in programmatic digital out of home (DOOH) advertising, today announced the appointment of Ichiro Jinnai as president, Hivestack Japan. Jinnai will be responsible for driving the regional strategy, direction and expansion of the Hivestack platform in Japan. “I am beyond thrilled to welcome Ichiro Jinnai to the Hivestack family,” […]

LENS Technology & Analytics Appoints Nikhil Elayat As Business Director
  • Advertising

LENS Technology & Analytics Appoints Nikhil Elayat As Business Director

Audience measurement platform LENS Technology & Analytics has appointed Nikhil Elayat to Business Director to fast-track growth opportunities across Australia and New Zealand. Elayat (pictured) joins from New Zealand’s largest independent advertising agency, Stanley Street, where he was head of advertising technology. He played a pivotal role in building adtech functions within the performance team […]

Burnet Institute Launches How Science Matters Podcast
  • Media

Burnet Institute Launches How Science Matters Podcast

Australian medical research institute, The Burnet Institute has launched, How Science Matters podcast. The informative podcast will be co-hosted by former ABC Radio journalist Tracy Parish and Burnet institute director and CEO Professor Brendan Crabb AC. Crabb is also a microbiologist, malaria researcher and will share his knowledge on contagious diseases. How Science Matters was […]

D&AD & Google Launch Shift In Sydney
  • Advertising
  • Media

D&AD & Google Launch Shift In Sydney

This extols "turning your passion into your profession". Unless your passions are dancing dachshunds or roller limbo.