“If you’re not optimizing your clients’ MarCom, they’re going to look for an agency that will.”
Advertising used to be simple.
Many agencies were formed by account executives that recruited the most creative people they could find with the promise of good clients, great work, and a different way of thinking.
Even then, leaders like David Ogilvy knew, “The general advertisers and their agencies know almost nothing for sure, because they cannot measure the results of their advertising."
WIN New biz
New accounts were landed in the bar, at a sporting event, or on the golf course. You got your chance to present by relentless networking and relationship-building.
DO GOOD WORK
Good work meant the client liked it and a good story could take the place of real data. As long as the work reasonably performed within the marketplace, everything was fine.
As long as the client liked the work, the client invested in media across multiple channels and the agency made its 15% on a regular basis — as long as it kept the account.
Measure, Monitor, Optimize: Get Market Ready Index®
There are more agencies today than ever before because there is a lower barrier to entry, which means multiple agencies pitch the same client on a regular basis. Because of technology and the advent of digital marketing, every millennial who figured out how to use Google AdWords is a digital marketer, and after a couple successful client stories they hang out their shingle to compete with you. With lower overhead, new agencies are able to operate more efficiently — at lower costs — and offer rates lower than traditional agencies.
Scope of Work Narrows
Today, integrated marketing communications (IMC) is the gold standard, addressing all the channels and subchannels required for a client platform. The trend among clients today is to engage multiple agencies with particular expertise for singular assignments, like SEO, Social Media, and Analytics. These specialized resources offer the unique mix of skills required to develop and improve each subchannel, generating a return on investment.
Revenue Streams Changed
Media commissions have steadily decreased over time, with some as low as 0%, removing the largest source of revenue. Agency retainers have become infrequent as clients cherry-pick agencies and demand project-based work on an as-needed basis. Additional revenue can be gained through ongoing services, like social media and content marketing, but require demonstrated performance through measurement and metrics to keep your slice of the pie.
Assess key accounts by analyzing sender analytics and opportunities for improvement with executive-level reporting, data visualization, industry trends, and critical analysis.
Identify opportunities from quantitative data and qualitative analysis to optimize each form of communication by leveraging human, business, and artificial intelligence.
Engage prospective clients in meaningful conversations and stimulate current accounts with new marketing technologies that help increase top-line revenue with recurring monthly services.
IN THE END
Be the Smarter, Profitable Agency.
The future of advertising agencies depends on their ability to support clients as needs grow and technologies advance.
Today, agencies need to win new business in an increasingly competitive digital space. This requires the utilization of new technologies and the conceptualization of new strategies that impact target markets. Leveraging MRI, agencies can attract new clients while providing additional value to existing customers, increasing revenue and setting up the agency for long-term success.