The Modern Agency: We’re Still Trying to Find One

Mark Kingdon, from Organic, kicked off the session with an overview of the challenges facing agencies today. From questions of the recession to the increasing reshuffling of the agency constellation between digital, creative and traditional agencies and their clients. Mark is an appropriate pick as a moderator, as he’s been writing on the modern agency since 2006. And considering we’re still having a panel on the topic, we’re obviously not there yet.

The agencies on the panel were fairly diverse set of older and new agencies: Organic, R/GA, Neo@Ogilvy, AKQA,  and Carat. What would of been interesting is the inclusion of agencies that are very clearly digital marketers rather than creative and small, boutique agencies that, while small, are more nimble to new advertising opportunities.

Quick Disclosure: I work at e-Storm, an interactive agency. However, this made me especially excited about addressing that question of “The Modern Agency.”

While the session contained the heavy topic of client budgets and fears about the recession, Mark at least polled the attendees by doing something decidedly fun (albeit a little dangerous): having people use given laser pointers to “vote” on the projector screen.

Mark introduced the topic by giving a survey of the challenges facing the agency world:

• Ever increasing pressure for CMOs and Agencies: CMOs tenures last 24 months and Agencies last nearly the same at 28 months
• Large clients are frustrated of feeling like referees between multiple agencies
• Clients generally feel that the “historical constellation is not working well” in addressing the challenges of the ever complex media space, including the technology and new expressions of human behavior (SMS to Social Networks) behind it, to manging the relationships of multiple agencies.

Before Mark went into his questions, the panelists volunteered some quick observations that they have seen in the agency landscape:

• Tom: Line between digital & tradition agencies blurring with both become more capability in each other’s core competencies
• Greg: The type of work agencies engage in are evolving, yet the organizational structure within each agency change

Moderator Question:

Do you see the pace of change picking up the office of the CMO?

One of the panelist quipped that “Clients get the agencies they deserve” underlining the fact that agencies tend to mold themselves to the capabilities of the CMO. Every CMO is different and the change of the pace is very dependent on them, even when they partner with a more aggressive and bleeding-edge agency.

Another point that all of the panelists seemed to agree on is that CMOs, who are either younger or with teenage children, are more likely to push for change. The idea of a generational divide is a common recurrent theme at ad:tech, and so is the notion that many marketers speak of learning about social media and new venues for marketing via their children. Julie Roehm from the “Entertainment & Media” panel repeatedly referenced her children as a resource to gather insights on new media.

Moderator Question:

What should be the lead agency model to integrate various disciplines?

Tom Bedecarre, CEO of AKQA, declared that who will be lead agencies will diversify. As the lines between digital and traditional blur, you will not be able to count on the traditional agency always leading.

Looking beyond the lead agency model, Naked Communication was mentioned as an agency taking the neutral role as a mediator and coordinator for communication planning. A good follow-up question would of been: Is Naked Communication part of a larger marketer or only niche? Is there space for other new entrants into the role?

Moderator Question:

What agencies most resembles the Modern Agency?

Following up on what a new lead agency model should look like, Mark Kingdon hit on the bigger question: “who most resembles the new agency?“Unfortunately, the panelist were hesitant in their answers besides referencing Goodby and Crispin without an explanation of why, how or what campaigns illustrated their capabilities as a “Modern Agency.”

Carat and AQKA were also mentioned by the panel, giving chuckles to some in the audience since these two agencies were also on the panel.

Left out was the biggest missing question: defining concretely what a Modern Agency actually looks like. Mark Kingdon actually wrote on this in 2006 as the agency becoming a content publisher: “the modern agency will create engaging consumer experiences and shares them on behalf of brands rather than neatly packaged brand messages broadcast at a target.”

Moderator Question:

Does it make sense to have a brand cop? And in what context?

Three of the panelists were united in believing that the client “needs to be the brand steward” and that one should never outsource their reputation (the essence of what a brand is). Barry Wacksman of RG/A went further to declare that “if you’re a client the one thing you can bring to an agency group is a vision, where your agency partners will then execute for you.”

Tom of AKQA was the lone dissenter stating that “Brand Cop…is part of the old model.” Instead, a shared model should be approach where all agents involved - from the client to the agencies - are stakeholders.

Moderator Question:

Give an example of connected marketing gone awry or the attributes of a failed campaign?

Here the panelists showed some hesitancy in their answer with both Tom and Barry giving short safe answers on agency issues: 1) "traditional agencies don't want to take risks….in areas like social media"; and 2) big global campaigns that enforce consistency over connecting with users at the local level.