google firestarters conference: an emerging agency os
DESCRIPTION
An Emerging Agency OS@martinbailiewhat's broke?-Our focus:outcomes have become divorced from outputsclients seek a profitable growth outcome, agencies seek rewards from a famous outputClients like increased profit, agencies like making thingsConsequently, clients don't always value the same things as agencies doReplacing a client with a new one easily costs £100k or more. Our failure to align is eating into our profit and morale.-Our business model:Agencies have two masters but only get paid by one. Agencies are addicted to short term client cash whereas consumers offer an additional revenue stream.Spend will slowly flow away from agencies to cheaper crowd and outsourced services. All areas will be affected, from strategy modeling, to production, to optimisation to ideas.As marketing, products, services and media merge, agencies, with new partners, will be able to service consumers as well as clients.what's the need?Client needs are simple: Clients need Ideas, Innovation and (real time) Intelligence to power sales. Agency needs are to attract best talent and to increase revenue to pay for that talent and any (currently lacking) R&D-Talent: Agencies are full of inventive and productive people but servicing clients full-time undermines motivation. If they are to be kept in agencies, agencies will need to find better ways to fulfil them.-Revenue: Agencies have loads of ideas but make too few. We can divorce ourselves of client only revenue by exploiting our existing ideas and engaging new partners to fund and develop our ideas to successful launch and customer revenue.what are the trends?Two agency types are emerging - those that value outcomes, and those that value outputs:1) Outcomes agencies will worship effectiveness and will be built around the client's business. They will become convergence consultants to deliver Ideas, Innovation and Intelligence (from any source) to grow client profit over time.2) Output agencies will continue to generate big ideas, they will create fame for clients but will also develop new revenue streams for those ideas from direct to consumer products and services, thereby beating their addiction to short term client cashAll agencies need an AgencyOS – a data driven platform and structural/organising principle to deliver real time insight, development and optimisation. The most successful agencies will deliver both ideas and effectiveness. But those will be rare as the increase of channels and approaches continues.Implications1. the agencies closest to the data will lead their agency partners. The most successful agencies will combine ideas and data talent in equal measure.2. in client organisations, the older generations will cede control to younger managers investing ahead of the curve for the real time and digital future that’s unfolding. This will come too slowly for some. Those that don't answer customer’s immediate needs will quickly lose customers.TRANSCRIPT
AN EMERGING AGENCY OS
@martinbailie
outputs
outcomes
sales
making great things
minimise risk
new!
Source: 2008 Global Marketing Organization benchmark study
(with their money)
11%
100%
tasked with innovation?
Source: 2008 Global Marketing Organization benchmark study
growth
gongs
Source: Reardon Smith Whittaker (US)
growth
gongs
“inadequate to the task”
Source: Reardon Smith Whittaker (US)
growth
gongs£100k
“inadequate to the task”
Source: Reardon Smith Whittaker (US)
CLIENTS WANT INNOVATIONS IN HOW WE OPERATE
make open-sourcing ideas
financially viable
whatʼs your added value vs media
owners? outcome-based compensation
Mark HunterCoors & ISBA
our work us
our work us
WEʼRE ADDICTED TO SHORT-TERM CASH
100%
Client revenue
WEʼRE ADDICTED TO CLIENTS
ITʼS AN UNHEALTHY DEPENDENCY
Sources: Forrester / Dan Pink ʻDriveʼ
v
Sales, nowPersonal fulfilment
please
Sources: Forrester / Dan Pink ʻDriveʼ
v
Sales, nowPersonal fulfilment
please
Sources: Forrester / Dan Pink ʻDriveʼ
v
the role of agency management
Sales, now
Sources: Forrester / Dan Pink ʻDriveʼ
how do we keep everyone happy?
v
Personal fulfilment please
WEʼVE TWO MASTERSbut we only take money from one
WEʼVE TWO MASTERSbut we only take money from one
opportunity!
FROM CLIENT MONOGAMY
100%
Client revenue
TO SLEEPING AROUND
50%50%
Customer revenue
Client revenue
Sources: Forrester / Dan Pink ʻDriveʼ
True understanding
of business
Fulfilled inventive
types
Sources: Forrester / Dan Pink ʻDriveʼ
True understanding
of business
Fulfilled inventive
types
MasteryAutonomyPurpose
YEAH YEAH YEAHBUT HOW?
ideas clients donʼt want
but that customers need
ideas clients donʼt want
but that customers need
YEAH YEAH YEAHBUT WEʼRE SET UP TO DELIVER CLIENT THINGS…
YʼKNOW LIKE CAMPAIGNS
MAYBE
MAYBEOUR OUTPUTS ARE CHANGING
software, brands, products, services...
MAYBEOUR OUTPUTS ARE CHANGING
software, brands, products, services...
AND OUR TIME-PLANS ARE LENGTHENING
SO WEʼRE BEGINNING TO ACT MORE LIKE CLIENTS...
SO WEʼRE BEGINNING TO ACT MORE LIKE CLIENTS...SHOC
KER!
WE NEED AFLEXIBLE APPROACH
to help us serve both masters
A BUSINESS OS A PLATFORM THAT DRIVES
REAL-TIME SALESAND SUPPORTS AN
ECOSYSTEM OF INNOVATION
OPEN DATA PLATFORM
OPEN DATA PLATFORM
VALUE ADDED LAYER
OPEN DATA PLATFORM
VALUE ADDED LAYER
MULTI-PLATFORM DELIVERY
OPEN DATA PLATFORM
VALUE ADDED LAYER
MULTI-PLATFORM DELIVERY
OPEN DATA PLATFORM
VALUE ADDED LAYER
MULTI-PLATFORM DELIVERY
OPEN DATA PLATFORM
VALUE ADDED LAYER
MULTI-PLATFORM DELIVERY
OPEN DATA PLATFORM
VALUE ADDED LAYER
MULTI-PLATFORM DELIVERY
OPEN DATA PLATFORM
a marketing OS
real-time optimisation & insight behaviour & opinion
content managementtrading
effectiveness modelling
OPEN DATA PLATFORM
VALUE ADDED LAYER
agencies orchestrate outcomes
pain-free integrationproprietary research
benchmarksmarketing generalistsdeliver effectiveness
VALUE ADDED LAYER
MULTI-PLATFORM DELIVERY
specialists deliver outputs
big ideascommunity management
media tradingsoftware
behavioural optimisationtv production
innovation planning...
MULTI-PLATFORM DELIVERY
OPEN DATA PLATFORM
VALUE ADDED LAYER
MULTI-PLATFORM DELIVERY
OPEN DATA PLATFORM
VALUE ADDED LAYER
MULTI-PLATFORM DELIVERY
clientʼs customers
OPEN DATA PLATFORM
VALUE ADDED LAYER
MULTI-PLATFORM DELIVERY
clientʼs customers our customers
PREDICTIONS
PREDICTIONS
the brands closest to customers will grow
PREDICTIONS
the brands closest to customers will grow
so, agencies working with customers will...
PREDICTIONS
the brands closest to customers will grow
so, agencies working with customers will...
lead others because theyʼre closest to the data
PREDICTIONS
the brands closest to customers will grow
so, agencies working with customers will...
lead others because theyʼre closest to the datacreate new revenue
PREDICTIONS
the brands closest to customers will grow
so, agencies working with customers will...
lead others because theyʼre closest to the datacreate new revenuedefine new models
PREDICTIONS
the brands closest to customers will grow
so, agencies working with customers will...
lead others because theyʼre closest to the datacreate new revenuedefine new modelssucceed as clients see them as more credible
"There are two ways for a company to get better.
Look at what you're good at, or start with the customer and work backwards, even if it requires new skills.”
Good luck!
@martinbailie