One soltion CMOs ae sing is to consolidate thei agenc patnes centall.O eseach fond that neal 50% of maketes ae seeking to consolidate thei agenc patnes at a global level.Top agencies ecognie the poblem of specialiation and sepaate P&Ls, and vaios soltions have been poposed. One option is to ceate “mini-agencies”fo big clients. WPP CEO Si Matin Soell’s epeiment at Dell — a $4.5B globalaccont — is an eample of the benefits and pitfalls in this appoach. In this case,the attempted to attact the stas to the accont fom acoss WPP. Bt sepaateP&Ls and the loalt to the agenc — not to the holding compan — impeded theabilit to ceate the best-in-beed team stcte. Dell qickl eveted to an “adhoc” set of agencies, and ltimatel moved the accont to thee smalle agencies— none of which wee pat of WPP.Clients ae inceasingl looking fo the integation of teams acoss mltipledisciplines — design, achitecte, engineeing, anthopolog, and stotelling canall pla a ole. Some of the best thinking comes when these skills ae nited nde a single oof, not spead aond the wold.
1. STruGGLES WITH AGENCy SPECIALIzATION
Senio global maketes deal with the danting challenges of managing mltipleconties eve da. Too often, the ae not getting mlti-channel, global thinkingfom thei fagmented agenc potfolio. The gowth of disptive technolog hasfeled a polifeation of new tpes of specialied agencies. Bt it comes at a cost —paticlal fo comple global bands.As we mentioned in the intodction, the eseach shows that jst 8% of senio maketes believe thei agenc patnes ae scceeding in thei sppot of globalbands. In o std, oghl 60% of senio maketes chaacteie themselvesas tech-savv. Among those who ae technolog savv — pesmabl the gopbest able to ndestand the oppotnities of this new disptive technolog — thenmbe believing thei agencies wee sccessfll sppoting global bandsdopped to eo (0%). We believe these data show that even the most sophisticatedmakete will stggle with too man specialied agenc patnes.Anothe aspect of the poblem is that man digital agencies don’t offe end-to-endsoltions. Accoding to a 2010 sve, 80% of those sveed in the uK feel thatdigital agencies ae too fagmented and specialied, and want digital agencies togow thei sevice to povide a fll integated offeing (sch as design and bild,development, email, eCrM, seach, data, displa, and social media).”
Tight integation is paticlalimpotant fo lage, globalacconts fo fo main easons:the impotance of cont-specific knowledge, the iskof a cacophon of noise if notpopel oganied, the difficltin identifing team esocesin global acconts, and thegowing emphasis on mlti-channel epeiences.Inceased specialiation epesents a challenge fo which agencies — paticlallage, global agencies — contine to seek soltions.
Brands need to find the rightstrategic partners to get theright ideas. I’ve seen brandswith 30 people from differentagencies.
Former Unilever SVP Brand Marketing
Global agencies contine to gapple with a digital wold eqiingglobal consistenc, bt local aticlation. Despite epeated effotsove the past two decades, agencies have been nsccessfl at fllsolving the poblems inheent in global accont management in thedigital age. O eseach evealed the damage it has done to CMOs— jst 8% of CMOs feel that thei global agencies ae sppotingthem sccessfll. When we looked at maketes who identifiedthemselves as technolog savv, the nmbe dopped to eo (0%).SapientNito’s ecent eseach fond five majo poblem aeas, which agencies mst addess: inceased specialiation, a lack ofdeep cont-specific knowledge, a lack of stategic digital thinking,a lack of omni-channel global concepts, and a lack of investmentinto skills and digital tools.
Costa, Malo. “remodelling the Agenc relationship fo the 3.0 Age.” Agst 2010
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