Welcome to the latest Agency Wire, where we follow major trends in the communications and marketing industry.
The New Agency Model
At a recent Digiday event, agency execs were asked to speak about some of the biggest challenges they face today. The answers highlight some overarching issues facing both agencies and marketers alike, including the transformation of the agency model, how to quantify creativity, finding (and keeping) the right talent and collaboration. One of the biggest challenges mentioned was "time and money." Agencies are feeling the squeeze with more clients focusing in on procurement. One agency exec summed it up perfectly, asserting that out of cash, credit and creative, "you can only have two."
As Snapchat's parent company, Snap Inc., went public last week, the industry was abuzz with insights and think pieces on the future of the platform after the IPO. Adweek asked three digital agencies - Huge, Resource/Ammirati and Edelman - their take on Snapchat's role as a brand platform going forward. Here's what they said.
It has the youthful advantage - Snapchat's main advantage still lies in its ability to reach a younger audience.
Instagram has delivered a blow - The rise of Instagram Stories encouraged brands to invest there since they were already on the platform, rather than move over to Snapchat.
The camera business is risky - Venturing into hardware is risky, especially when competing against companies like Apple and Google.
Why The Rise Of Consultants May Not Mean The Death Of Traditional Agencies
The recent trend of consulting firms acquiring agencies showed no sign of slowing down in 2016, and some have questioned what this means for the future of traditional agencies in the wake of tightening budgets and agency profits dropping. The differentiating factor going forward will be creativity, according to several agency execs. R3 Principal and Co-Founder, Shufen Goh, asserted, "Agencies need to introspect and re-look their creative process, technology infrastructure and resourcing strategy. When technology becomes hygiene, then surely what differentiates would be creativity."
R3 is a global marketing consultancy focused on improving the effectiveness and efficiency of marketers and their agencies. Founded in 2002, we work with eight of the world's top twenty global marketers.
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