What does a true partner look like in the current dynamic era? Have the demands of client-agency relationships changed? John McNerney, managing director, AUSEA, Yahoo explains how technology evolution is reshaping the dynamics between agencies and clients.
“Relentless”. That was one word ADMA CEO Andrea Martens used when asked at a recent event to describe the last year for the industry. It’s something that a lot of the people in a packed room nodded along to. When you stop and reflect on what has happened in the past year it has been relentless. Pretty much every buzzword from a year ago has been replaced by a new set of priorities for marketers to focus on.
Even the internet itself is a fundamentally different place – thanks to the emergence of generative AI. But here we are, adapting to the latest reality, and wondering when we’ll have a chance to come up for air to gather our thoughts and reflect. I’ve got bad news for you, it isn’t going to get any less frenetic any time soon. And this relentless pace of change is requiring a fundamental change in what is needed from agencies and vendors by marketers. This change is having a number of consequences which we’re starting to see playing out.
Other terms that emerged during that panel were; “transformation”, “consolidation”, “privacy and policy” and “AI”, signifying the complexities and challenges that agencies and clients face as they adapt and course-correct.
The Changing Adtech Landscape
One big eye-opener was how there are way fewer Adtech companies for folks in the media world to pick from. Imagine it like a bunch of options suddenly disappearing – about 20 per cent less than before. This shrinkage matches up with the shift in the agency-client relationship. Technology has been the key catalyst in driving fast changes and evolution in the world of advertising.
The way ads work today is getting more complicated, but that’s not a bad thing. It’s like a puzzle with lots of pieces, and businesses are finding new ways to put those pieces together Experts who know all about these changes are the trusted guides in this new landscape. They help businesses understand how people are now enjoying content, finding information, and how to respect the evolving privacy landscape, working within the rules and policies that keep everything fair.
In a way the emergence of Generative AI is symbolic of the shift we’re seeing in the industry. For many, it’s becoming a valued assistant which makes things run more smoothly, streamline processes and answer questions in a different way to traditional search tools. It’s truly transformational. Similarly there’s a broader industry trend at play of moving from transactional to transformational partnerships. In a landscape where automation is only going to become increasingly prevalent, the values of knowledge, strategic thinking and commercial creativity become paramount.
Partners which assist their clients in comprehending and navigating the intricate landscape of technology and strategy are the ones which are going to create their own brighter future as well.
A new opportunity for agencies
In the ever-changing business ecosystem, the involvement of third-party partners goes beyond mere assistance. It’s about not only adapting but excelling amidst the most challenging circumstances. While strategy traditionally falls within the brands’ domain, agencies have embraced the opportunity to identify possibilities and develop agile plans that align with evolving consumer behaviors.
Agencies have seized the chance to showcase their prowess in innovative thinking, a distinction often blurred by mere salesmanship. The true distinction lies in offering tailor-made insights that cater to a client’s specific vertical, coupled with avenues for exploration. This separates agencies that provide genuine value from those struggling to do so. Now, more than ever, having external advisors is incredibly important for brands. They could be tech partners, digital experts, consultants or research firms.
The main thing is they are independent experts who can guide brands to more effectively realise the potential of the channels they are probably already operating in. The tools have become more sophisticated than most people realise, so guiding brands on how they can most efficiently reach their audience and drive an action with the right creative execution in the right channel is invaluable, but something that is intrinsically unique for every business.
We all need help at some point
So, what’s the big story here? Partnerships between businesses and experts have leveled up. Instead of just getting things done, they’re exploring new territories together. The secret sauce is being open to change, using expert know-how, and letting technology lend a hand. This powerful combo is how businesses aren’t just keeping up – they’re zooming ahead toward success. Hang on tight because the tsunami of change is only growing in intensity. But with the right people by your side, you can ride this wave like a pro. It’s all about staying flexible, learning the new ropes, and finding partners who can guide you through the twists and turns. Teamwork really will make the dream work.
