Is The Agency Model Broken?

As a media review consultant DrexlerFajen Partners is also involved with a review at this time And in the many reviews that we have previously conducted the least rewarded agencies are those that come in with presentations covering the kitchen sink with an overabundance of general agency credentials and teams that appear as though they have never worked together before I see the client39s eyes roll and the bodies fidgetWhat many agencies don39t do particularly well is this They tryamp160to show that they understand the clients39 businesses their market segments and the competitive industry And they often neglect to demonstrate innovative problem solving approaches amp160When they do they don39t offer unique insights and opportunities for the particular client prospect Agencies like to show off how successfully they have built the agency and its resources instead of showing how good a strategic innovative problem solving partner they can beFormerly over the years all eyes were focused on who could get better rates and charge the lowest fee or commission In other words makeamp160the agency business a commodity So clients got used to thinking that way That agencies are virtually interchangeable With the advent of digital technology and increased pressure on both client and agency costs the whole ball game began to change amp160Everyone ran to build their digital resources bring in the required expertise and look for ways to add new revenue streams sometimes without the appropriate client disclosure practices in place amp160So the model continues to need fixing Not patching fixingThe agency model may be broken but it has not been destroyed Here are some ideas about what is needed to fix itReal agency integration not profit center siloes continues to be an issue Media integration and creative integration that enhances the communication process to produce a better marketing result and measuring that result with appropriate methods and benchmarksStrategic insight and plan development in concert with the client marketing staff including a view towards client future goals and objectives to demonstrate agency leadership including trend data and talent that brings new agency thinking into the equationCohesive staffing with the proper disciplines to solve specific client problems and the essential people to form a core client team not an agency group consistently on board that primarily adds to overhead amp160Compensation formulas that are reasonable and acceptable to all parties and are negotiated into the contract without agency concealment and hidden revenue streams that leverage client media investments for the sole benefit of the agencyHolding company structures where they exist to add real value to each client39s individual businesses and enhance operating efficiencyCommitted relationships that share client concerns and help to expand longterm business opportunitiesDigital media platforms exchanges and trading desks that represent the best interests of the client with full operating transparencyThese are just some of the important steps that need to be taken if agencies are to continue to grow and thrive with their clients The rapidly changing media world has become increasingly complex on many levels It requires a better client understanding of how an agency functions today and what clients believe is lackingamp160In my opinion agencies must begin to think more like consultants or the consultants will take over the agenciesamp160The opinions and points of view expressed in this commentary are exclusively the views of the author and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated bloggers

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Is The Agency Model Broken?

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Mike Drexler

"About That with Carl Mayer:" Alaina Donnellon (Episode 10: Political Spending) - By Carl Mayer

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Is The Agency Model Broken?

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Mike Drexler

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