Only in the U.S. In the US, there are 13,000 advertising agencies that do everything from creating TV ads to buying TV ads (and buying through an ever-expanding litany of media channels), not to mention social commerce and out-of-home advertising. Now there's even a metaverse registration agency. Over time, agencies such as WPP and Omnicom have expanded this experience across their entire customer base.
With rapid advances in advertising agency partnerships, brands have been forced to make difficult changes. Most traditional agencies are a decade behind in the digital space, which essentially caused their overall decline in value. That said, traditional agency models haven't evolved to inherit the expertise needed to deliver the attention required by a digital marketing campaign, especially with television. We believe it's important for marketers to know exactly why the traditional agency model has lost its value in today's modern society.
Looking to the Future, Agencies Focus on Being More Productive, Efficient and Profitable. If you have taken these difficult circumstances and discordant cuts in media spending to recognize the flaws of this traditional model, it may be too late for an agency to save its business. This broader focus on skill sets through strategy, technology and analysis will now lay the foundation for an agency's future talent structure. Advertising agencies that are able to create and execute strategies using this social phenomenon can offer brands numerous benefits.
Not only have I heard this perspective from experienced people at agencies I know; I've also started to see some of these changes firsthand in my own agency (although, I admit, I haven't been in business for a long time). Agencies need to be smarter on the buying side of advertising, not just the brand, which could be developing proprietary advertising technology to sell subscriptions, launch continuous work programs based on CRM, or something else entirely that can provide a steady stream of revenue. In fact, this is a vision of the future, but in reality it is only the middle ground for agencies to be able and should be. Of course, it's not all pessimism; in fact, over the past week, data shared by Advertiser Perceptions indicate a clear uptick on the horizon.
As the global head of Consulting at ForwardPMX, Tom leads a team of experts focused on growing and innovating the agency's skills, services and products in data science, marketing technology, and business strategy. Just because an advertising agency has created outstanding campaigns for other brands doesn't mean they're right for where your brand is now, or the direction it should go. Tom has spent the past 13 years at ForwardPMX in various roles, including chief strategy officer, chief payment officer and chief technology officer %26 Innovation, managing the development of the agency's proprietary technology platform, STAGE, and playing a key role in cultivating work culture inspired by Lean at ForwardPMX. According to a recent Interactive Advertising Bureau survey, nearly a quarter of buyers, planners and media brands will not begin reinvesting in media until the end of the second quarter, and even then investment levels, especially with regard to traditional media budgets, remain at doubt.
I have been with an agency for a long time and, from my perspective, the trend is towards more project-based one-off jobs, rather than the old “registration agency” job where everything is done on an ongoing basis. Large clients are taking the work internally and are only reaching out to an agency for a special campaign or rebrand. .