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This is the Age of Disruption and the marketing ecosystem is being transformed daily by technology and disintermediation. Marketers and agencies are trying to adjust to the new forces that shape the marketplace, but transformation is not easy. The future is about marrying data-based creativity with technology, entertainment, and influencer marketing, which means marketers will have to make sure they have staff on board that can handle it. Data is no longer the by-product of innovation but is the innovation itself. Ad agencies are especially inadequately prepared for the realities of what’s coming and continue to cling to their TV commercials.
When it comes to hiring an agency, I believe that the traditional model is obsolete. Agencies today need to update their skills and develop up-to-the-minute expertise. Any Procurement and Marketing team, or a search consultant worth their salt should ask the following questions….
How tech literate are you?
Gaps in technology services and skillsets leave agencies less than fully relevant. Have they developed platforms that bring business, brand, design, operations and technology together which and create a seamless omnichannel experiences? Most agencies ignore investment in this, creating a vacuum that is happily occupied by the consulting firm.
Are you a cross-channel data expert?
For most agencies, data-driven marketing is tactical rather than strategic and transformative. You’d like to know how they leverage data from myriad sources across paid, owned and earned channels, and also be able at creating real-time dynamic ads, delivered through hyper-relevant targeting.
Do you think beyond screens?
By 2020, 30% of web browsing will be done without screens, and these interactions will be controlled by voice, gesture, or neural prosthetics. Some 100 million consumers will shop via AR. Context will take center stage and will have to be integrated seamlessly with real-world locations 3D modelling and game design.
Do you collaborate with machines?
Now that micro targeting is becoming more common, the need for content has exploded. As machines are increasingly used to generate and place assets, the roles of agencies need to evolve from just concepting, to including curating and iterating. Advertisers should be looking for agency partners that can create personalized marketing.
Do you understand eCommerce?
As more brands, both B2C and B2B, put emphasis on selling their products and services online, commercialization and the branding model of communications is evolving. There is more emphasis on customer lifetime value model and subscriptions for meals, clothes, cars or razor blades.
Do you create branded Entertainment?
As audiences migrate to commercial-free streaming platforms, more brands are looking to engage customers with original programming. This requires a fundamental reboot from traditional marketing and content marketing. Whereas traditional brands focus on positioning their brands in the minds of their customers, entertainment positions brands in the lives of their customers.
Do you understand influencer marketing?
As traditional advertising is becoming less impactful, and social media becomes prime platforms, always-on influencer campaigns are evolving from a tactic to a mainstay of the brand’s marketing strategy. But the growth of influencer marketing requires agencies must learn how to measure ROI of these campaigns.
Are you blockchain-enabled?
Kidding and over-hyping aside, blockchain is around the corner. Ad-blocking software has over 200 million users and counting, but blockchain technology could make these tools obsolete. Blockchain will allow consumers to decide what to watch, and hopefully, give advertisers a modern, sophisticated means to producing high quality leads.
Are you ready for the Amazon disruption?
If Google disrupted discovery, Facebook disrupted social, and Amazon’s data-enabled dynamic pricing is the biggest disruption ever in the marketing ecosystem. It threatens every brand and can commoditize markets at will. Brands will need to adopt custom-tailored strategies specifically applied for this fast moving, algorithm-enhanced and complex platform.
An agency that is not is not the solution is an agency that is the problem. Historically, smart agencies always used new platforms, from radio to TV, to change consumer behavior. As these platforms are becoming more complex, marketers I speak are becoming more frustrated that many agencies haven’t adapted and are falling behind as innovative resource.
Feature Image Credit: Getty
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Avi Dan is CEO of Avidan Strategies. It improves agency partnerships, and manage agency search and compensation
