the agency of the futureWe must move beyond the campaign and understand how to drive true customer value.

What is our challenge today?

“Software is “eating” the world”!Source: Marc Andreessen, Andreessen-Horowitz

!

The pace of change in consumer behaviour and technology demands that every aspect of communication becomes more flexible, integrated and efficient.

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

what must the “agency of the future” believe and deliver to be credible?

If advertising/marketing is a business discipline focussed on selling the most goods and services at the best prices, it can’t be just a random collection of activities or assumptions set in time. !It must be adaptive and dynamic to respond to the market.

Most advertising is still oriented around a ‘launch and leave it’ philosophy – an idea that is contrary to product development best practices....We need to work, get things to market, and learn faster. Do it cheaper, leaner, and more collaboratively. Find ways to operationalize hacking and experimentation.!

“Winston Binch, Chief Digital Officer, Deutsch LA

Media is less and less often about crafting a single message to be consumed by individuals, and more often a way of creating an environment for convening and supporting groups.“

”Clay Shirky, Partner, acceleratorgroup

”we are all experiencing the effects of technology changing expectations.

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

advertisers increasingly frustrated with their ad agencies.

We’re less valued by our clients (poor results) and by their audiences (not seen as cultural contributors) !‣ 90% of clients believe creative ideas and strategy are

critical deliverables for their agencies!AND YET...!‣ 85% think that agencies have not improved service to

clients!‣ 82% of clients see a need for better briefs!‣ 72% of marketers report that agencies are “inconsistent”

and need to improve!‣ 46% of marketers think that agencies are struggling in

transitioning their business model to incorporate a more digital platform

Source: Avidan Strategies 2012

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

compelling!brand narratives happen in real-time

‣ We need to develop strategic processes, not strategic plans, whose minimum outcomes will meet business objectives. But which also have the potential to deliver far more. !Things to consider:!‣ People are in flux - daily, hourly. So we must be adaptive

and dynamic to respond to their needs.!‣ Consumer, user, and customer are all states - successful

brand interactions can transform these states !‣ We need to provide ourselves and our clients room to

evolve our thinking as consumer reactions are gathered in real-time!

‣ For brands, that means pursuing a constantly shifting, iterative approach to projects and campaigns.

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

we need !a modern approach to strategy that...

‣ limits the number of up-front assumptions made prior to developing a solution.!

‣ marries strategic development with product/platform development.!‣ reacts to new opportunities as they become available and uses

them to solve business and marketing problems.!‣ turns client and agency into collaborators - future outcomes

are unclear therefore no side can claim to have the answer.!‣ demands unity and collaboration between “thinking teams” and

“making teams”

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

brands are valued for what they “DO” not what they “SAY”

pre-digital!Interruption!

Image manipulation!Saying things at people!

Intangible value!Perception

post-digital!Participation!Value creation!Doing things for people!Tangible value!Behavior

We need to move away from saying things at people to doing things with and for people. Generous ideas can be larger than BIG IDEAS.

‣ Then - brands used to be a broadcast voice, unidirectional, with specific messages and mediums used for delivery.

‣ Now - brands are involved in conversations that are ongoing and require continual interaction.

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

What can we learn from Customer Engagement Agencies?

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

“Agencies that focus on defining customer-oriented business strategies and mapping them to tactics and execution. They help clients maximize customer profitability and optimize customer experiences by applying data and analytics to every interaction.”

We must be able to inform our strategies using customer intelligence and insight to maximize customer value.

Forrester, Customer Engagement Agencies, Nov 2012

What Customer Engagement Agencies are focused on...

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

‣ Deliver management consulting-level strategy!‣ Inform strategy using customer intelligence and insights!

‣ Develop expertise in customer experience journey-mapping!‣ Truly understand customer needs and behaviour!

‣ Increase measurement and predictive analytic expertise!‣ Help client’s maximize customer value!

‣ Further develop cross-channel capabilities!‣ Focus on understanding the interplay between channels!

‣ Driving customer value, not just marketing value!‣ Campaign effectiveness does not = marketing success

Cycle drives real-time marketing through addressable channels

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

ALIGN DATASETS !& DEFINE AUDIENCE

01

SELECT CHANNEL!& SOURCES

02CONTINUOUS!INTELLIGENT!OPTIMIZATION

03BUSINESS!OUTCOME

INSIGHTS

ANALYTICS

RESULTS

Brand experience activation process

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

Customer Insights‣Segments!‣Occasions!‣Applications!‣Platforms!‣Location

Hypothesis

Hypothesis

Hypothesis

Hypothesis

Hypothesis

Brand Experience!Activation!Ideas

Customer Segments

Purchase Occasion

Product Category

Purchase!Location

Channel Selection

Activation ideas that can be implemented immediately.

Ideas requiring additional validation due to cost and/or deviation from current core competencies.

Longer term ideas that will ensure delivery of consistent brand experience.

QUICK WINS

BREAKTHROUGH IDEAS

FUTURE GROWTH PLATFORM

6-12 Months3 Months Ongoing

Thought Starter - Discussion Paper AGENCY OF THE FUTURE

Thank You.