Agency Integration: The State of the Art

1IMPROVING THE EFFECTIVENESS & EFFICIENCY OF MARKETERS & THEIR AGENCIES

AGENCY INTEGRATION THE STATE OF THE ART

AGENCY INTEGRATION THE STATE OF THE ART


New Agency Roles

Agency Model making news at all marketing events

3IMPROVING THE EFFECTIVENESS & EFFICIENCY OF MARKETERS & THEIR AGENCIES 3

Consultants? Agencies?

Deal Value Over $2bn In 2016


Talent Fight With Tech Firms


Brands are creating their ideas in house

Lenovo looked to users rather than agencies to create a video and TV campaign for its Yoga products in a bid to attract a younger audience. Lenovo used a crowdsourcing platform to develop ideas for the campaign before deciding on the concept of showcasing ‘life hacks’.

Red Bull took this a step further. The brand formed its Media House unit in Salzburg, Austria, in 2007 as an independent company "with a target of sustaining its own revenue stream," a company rep says, meaning the Red Bull-branded videos make money in their own right.

Marriott Content Studio was founded in 2014 and now has 65 staff and has created slick content like "Two Bellmen," a 17-minute action comedy that has garnered more than 5 million views on YouTube at this writing and "French Kiss," a 23-minute romantic comedy that has notched more than 6 million views.


THE SIX DEGREES

1


www.R3integration40.com

Integration 40

http://www.r3integration40.com/


Criteria




SIX DEGREES OF INTEGRATION


Bud Light




P&G




VISA




Colgate





Sony




Integration Meets Globalization FIVE FACTOR ANALYSIS


Five FactorsAnalysis

Homogeneity

Culture Life Stage Structure Talent• Varying market

positions (i.e. leader in one market and challenger in another)

• High variability in product /service positioning and features

• Different buyer behaviour and customer journeys

• Contrasting cultural dimensions, e.g.

• Power Distance - Uncertainty Avoidance - Individualism vs. Collectivism

• Different competitors in different regions or local markets

• Local societal and environmental differences

• When a brand or campaign is in its “formative” stages, still rapidly evolving, and not yet fully defined, heavy control from the centre is often preferred

• Number of markets

• Client structure

• Funding and decision-making process

• Existence and expertise of regional or local market teams

• Where are the strongest resources on both agency and client side located?

• What other key partners are engaged and in what capacity?

• Offshore production capability?

What is right for one brand may not be right for another. Some brands with low variability within the product range and consistent buyer behaviour/customer journeys e.g. McDonalds will be able to adopt a centralised brand approach, but have (footfall) offers driven by market .

24


Homo-

geneity

Culture

LifeStage

Structure Talent Model

Highly Central

Central

Highly LocalTrying to move to Central

Regional

Local 25

Five FactorsAnalysis in Action


CASE STUDIES2


Changing fees and processes to become truly outcome focused


BALA radical new working model to streamline and drive focus


EBD ADAGENCY

INTERACTIVEAGENCY

BBAGENCY

BTLAGENCY

BRAND AGENCY

BD LEADER

DIGITAL MGR

BB LEADER

BTL MANAGER

GLOBAL STRATEGIC COMM PLANNING

MEDIA

ADD

DESIGN MGR

Multiple competing messages

P&G Before BALWorking Process




A new global roster with Digital and Creativity at the center


Network creative (2)

Boutique creative (4)

Digital (3)

Media (1)

Samsung 2014Global Review


THE AGENCY OF THE FUTURE?

3


Agencies as Integrators

• In 2015, LA digital agency Ignited diverted into a co-working incubator for 12 creative boutiques.

• The open collaboration allowed agency to offer a wider range of services to clients


Agencies as Content Leaders

Anomaly Shanghai – Unreasonable Project• a platform created and owned by Anomaly, that showcases and supports the

entrepreneurs, the mavericks, those who choose not to follow the beaten path and create value in their own unique way, from a spectrum of different industries and cities across the world.

• Anomaly co-operated with Touchmedia, China’s leading in-taxi media company, to screen trailers of the first episode in 12,000 taxis across Shanghai.

• Beyond the videos there's also a platform on all-purpose Chinese app WeChat, with over 50,000 followers. There's a weekly email newsletter, an annual book, a shop on Alibaba e-commerce platform Taobao, exhibits, and as of a few weeks ago, a "salon" discussion series.


Agencies as Brand Innovators

Zag has worked extensively with both private equity and venture capital houses in London and Silicon Valley.

In addition to assistance with funding, Zag can also assist with the acquisition and deployment of media for advertising.

This network is extensive and it is powerful – with many actively looking to invest space in return for equity.


Agencies as Angel Investors• Despite regular client work,

Minglab, a top tier global user experience design and application development company, has co-founded seven start-ups by providing design capabilities at a discounted rate.

• One of their investments, Fluxo, has been well-received globally and has been put in production.


Agencies as Accelerators


4FOUR

TAKEAWAYS


Big ideas are the heart of success

1.


Clear Roles and Responsibilities2.


Think about “curate” not just “create”

3.


Measure and Improve 4.


Thank You!CONTACT

GREG PAULL [email protected]

Marketing

Agency Integration: The State of the Art