Tuesday, March 23, 2010

A New Role for Ad Agencies in Today's Marketing Environment

The primary role for ad agency execs used to focus on talking to clients about how to say the right things in a creative and engaging way.  The typical account manager spent most of his time thinking about how to send messages, e.g. what do we need to say to persuade people to buy our product or service?

Today that same account manager should spend the majority of his time talking to clients about how to build relationships with their customers -- what do customers need to know to make smart decisions? how do we reach customers on the go? how do we help customers share their experiences with their peers?

This is not a new message for a digital agency. Every advertising conference for the past ten years has predicted that the future is in building customer experiences, not just in producing great advertising. But it's time for every agency to recognize and understand the impact this change is having on the role all advertising agencies can, and should, play within client organizations.

As I have noted in previous posts, many clients are simply overwhelmed by the new digital tools and how to use them to their advantage. In today's challenging marketplace, clients are not saying to their agencies, "How can you help us make ads or a new web site," they're saying, "how much do you understand about our business in order to help us build a bridge between our brand and our customers." The question is not just how to effectively use email, blogs, podcasts, mobile marketing, viral marketing, pay-per-click, user-generated content, Twitter, etc., but how to mix them with traditional media to create the most impact.

There is no question that the new digital environment opens opportunities to redefine and expand the role agencies can play with their clients. Clients are dealing with a laundry list of challenges – a rebounding, but still sluggish economy, competition from companies and places that they never dreamed would impact their business, a continued drive for lower costs, and perhaps, most frightening of all, a growing realization of the power that a connected consumer has over their business strategy and success.

Clients need ideas that will transform their business like never before, and now is the time for agencies to step in as a partner in setting business strategy, designing products and services to meet changing customer needs and wants, and creating new revenue models for their client and for themselves.

This is, indeed, a new role for agencies. It will not only require new skills, it will demand that agencies expand their definition of what it takes to be a great agency. The agency of tomorrow will truly understand how to help their clients find the ideal marketing mix of creative, technology, media, user experience and analytics.

This new role for agencies is frightening to some, but is a great opportunity for all who embrace it to its fullest extent.

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