Traditional advertising agencies are now at risk of losing their clients: True or False?

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Permalink Reply by Rouchos on September 18, 2008 at 12:58pm

The Media agency model is not at any real threat; what is in threat is the message. The demographics have changed to such great extents where the popular media are not the defacto situation anymore. More studies link higher search, click and yes even buying methods for Dance Music for 18-34 year olds than in lets say Rock. The formats need to change

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Permalink Reply by Spyro Poulos on September 21, 2008 at 10:38pm

At the end of the day advertisers across the world still want they always wanted - to sell/push more of their products or services. Today it's social networks, tomorrow it's mobile marketing blah blah blah - it really just comes down to what will move cans of cheese product off shelves and what will get little old ladies to sign up for AARP. Their is no one road to this - traditional ads, direct marketing, online, viral, PR, sponsorships, events all play a part but the marketers that are successful have their stories and goals straight for at least longer than one fiscal quarter. Thinking all of a sudden some agency that has a grip on Facebook will have Y&R shaking in it's boots is silly - at the same time the big boys need to get on board with things quicker - my hand to God I had drinks with a copy writer from one of the big agencies who said - "youth culture right now is at a crossroads between the skaters, the indy kids and the hip-hop kids." To which I answered "By 'now' you mean 1995 right?" What did you just wake up from a decade long Rave? Stop watching Seinfeld re-runs and put your ear to the ground.

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Permalink Reply by Dr. Taly weiss on September 22, 2008 at 10:32am

You all agree that there is a change.
But - who will be responsible for the understanding? who will succeed to present new rules and work models?

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Permalink Reply by Rouchos on September 25, 2008 at 8:47am

Problem is in the three major media outlets (TV, Radio and Newspapers) the chief selling officials have learned to do business a certain way. And its hard to teach an old dog new tricks (like blogs, or alternative formats). Even in the web 2.0 world things are a little stiff in the larger online organizations; they seem to lack from their own short sightedness

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Permalink Reply by Fernando Palacios on October 1, 2008 at 2:28am

Good question! It's a global fact that marketers are unsatisfied. It's a pitty I found it late. But it's still open and I'll leave my 2 cents.

In a certain way, there has always been a risk. The risk has just increased because now both communication and marketing have much more options to choose from. But I don't think they'll lose clients, just budget. And even so, much of the budget migration has taken place already, thus diminishing this risk.

Maybe it's not just a problem with the media, but also (and probably mainly) a flaw concerning the message. Traditional Ad agencies are still using the same recipe developed many decades ago, even though media and audience have evolved. Considering that Cannes is the exception when TiVo is the rule, advertising is missing the point somewhere.

But the point is that there will be no risk unless some evolved ad thinking comes by. Who will be responsible for that? Probably the people who will understand both the new media (internet, social networks and so on) and the new way of doing old stuff (evolved product placement, evolved ad stories and so on).

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Permalink Reply by Spyro Poulos on October 15, 2008 at 5:08pm

Of course not! But then again what is a "traditional advertising agency"? All the major shops have embraced viral, digital, mobile, WOM, etc. They aren't stupid - what I do think though is, in a global market of continually fracturing demographics that become more and more niche by the minute that to quote Sarah Palin "maverick" little shops can continue to slice a piece off here or there and do some great work that the big guys may not want to deal with because it's too small a project, audience or revenue stream.

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Permalink Reply by Grant Simmons on October 18, 2008 at 7:21pm

*Any* agency is at risk of losing clients if they can't deliver results based on creativity and expertise.

So what if the medium changes? The successful delivery of a message to the right demographic is one of the keys to longevity of client relationships. The other is to fully understand the client goals and deliver at (or preferably above) the level they expect.

Agencies aren't being stagnant either. Many are adding necessary expertise to their mix to ensure they understand all avenues and mediums available to (for want of a better word) exploit.

Successful agencies adapt, innovate and create differentiation in some form.

Those that don't lose clients. Every day.

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