Google Firestarters Conference: An Emerging Agency OS

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An Emerging Agency OS
@martinbailie

what's broke?

-Our focus:
outcomes have become divorced from outputs
clients seek a profitable growth outcome, agencies seek rewards from a famous output
Clients like increased profit, agencies like making things
Consequently, clients don't always value the same things as agencies do
Replacing 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 cash

All 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.


Implications

1. 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.

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Google Firestarters Conference: An Emerging Agency OS

  1. 1. AN EMERGING AGENCY OS @martinbailie
  2. 2. outputsoutcomes
  3. 3. making great thingssales
  4. 4. new! (with the ir money)minimise risk Source: 2008 Global Marketing Organization benchmark study
  5. 5. 100% tasked with innovation? 11%Source: 2008 Global Marketing Organization benchmark study
  6. 6. gongs growthSource: Reardon Smith Whittaker (US)
  7. 7. gongs “inadequate to the task” growthSource: Reardon Smith Whittaker (US)
  8. 8. 0k gongs 10 £ “inadequate to the task” growthSource: Reardon Smith Whittaker (US)
  9. 9. make open- sourcing ideas financially viablewhatʼs your added Mark Hunter Coors & ISBA value vs media owners? outcome-based compensation CLIENTS WANT INNOVATIONS IN HOW WE OPERATE
  10. 10. our uswork
  11. 11. our uswork
  12. 12. WEʼRE ADDICTED TO SHORT-TERM CASH
  13. 13. Client revenue 100%WEʼRE ADDICTED TO CLIENTS
  14. 14. ITʼS AN UNHEALTHY DEPENDENCY
  15. 15. vSources: Forrester / Dan Pink ʻDriveʼ
  16. 16. v Personal fulfilment Sales, now pleaseSources: Forrester / Dan Pink ʻDriveʼ
  17. 17. v Personal fulfilment Sales, now please the role of agency managementSources: Forrester / Dan Pink ʻDriveʼ
  18. 18. v Personal fulfilment Sales, now please how do we keep everyone happy?Sources: Forrester / Dan Pink ʻDriveʼ
  19. 19. WEʼVE TWO MASTERS but we only take money from one
  20. 20. opportunity!WEʼVE TWO MASTERS but we only take money from one
  21. 21. Client revenue 100%FROM CLIENT MONOGAMY
  22. 22. Client revenue 50%Customer revenue 50% TO SLEEPING AROUND
  23. 23. Fulfilled True inventive understanding types of businessSources: Forrester / Dan Pink ʻDriveʼ
  24. 24. Fulfilled True inventive understanding types of business Maste Auton ry omy Purpo seSources: Forrester / Dan Pink ʻDriveʼ
  25. 25. YEAH YEAH YEAH BUT HOW?
  26. 26. ideas clients but that donʼt want customers need
  27. 27. ideas clients but that donʼt want customers need
  28. 28. YEAH YEAH YEAHBUT WEʼRE SET UP TO DELIVER CLIENT THINGS… YʼKNOW LIKE CAMPAIGNS
  29. 29. MAYBE
  30. 30. MAYBE OUR OUTPUTS ARE CHANGINGsoftware, brands, products, services...
  31. 31. MAYBE OUR OUTPUTS ARE CHANGING software, brands, products, services...AND OUR TIME-PLANS ARE LENGTHENING
  32. 32. SO WEʼRE BEGINNING TOACT MORE LIKE CLIENTS...
  33. 33. SO WEʼRE BEGINNING TO KER! SHOCACT MORE LIKE CLIENTS...
  34. 34. WE NEED AFLEXIBLE APPROACH to help us serve both masters
  35. 35. A BUSINESS OSA PLATFORM THAT DRIVES REAL-TIME SALES AND SUPPORTS AN ECOSYSTEM OF INNOVATION
  36. 36. OPEN DATA PLATFORM
  37. 37. VALUE ADDED LAYEROPEN DATA PLATFORM
  38. 38. MULTI-PLATFORM DELIVERY VALUE ADDED LAYER OPEN DATA PLATFORM
  39. 39. MULTI-PLATFORM DELIVERY VALUE ADDED LAYER OPEN DATA PLATFORM
  40. 40. MULTI-PLATFORM DELIVERY VALUE ADDED LAYER OPEN DATA PLATFORM
  41. 41. MULTI-PLATFORM DELIVERY VALUE ADDED LAYER OPEN DATA PLATFORM
  42. 42. MULTI-PLATFORM DELIVERY VALUE ADDED LAYER OPEN DATA PLATFORM
  43. 43. OPEN DATA PLATFORM
  44. 44. a marketing OS real-time optimisation & insight behaviour & opinion content management trading effectiveness modellingOPEN DATA PLATFORM
  45. 45. VALUE ADDED LAYER
  46. 46. agencies orchestrate outcomes pain-free integration proprietary research benchmarks marketing generalists deliver effectivenessVALUE ADDED LAYER
  47. 47. MULTI-PLATFORM DELIVERY
  48. 48. MULTI-PLATFORM DELIVERY specialists deliver outputs big ideas community management media trading software behavioural optimisation tv production innovation planning ...
  49. 49. MULTI-PLATFORM DELIVERY VALUE ADDED LAYER OPEN DATA PLATFORM
  50. 50. clientʼs customers MULTI-PLATFORM DELIVERY VALUE ADDED LAYER OPEN DATA PLATFORM
  51. 51. clientʼs customers our customers MULTI-PLATFORM DELIVERY VALUE ADDED LAYER OPEN DATA PLATFORM
  52. 52. PREDICTIONS
  53. 53. PREDICTIONSthe brands closest to customers will grow
  54. 54. PREDICTIONSthe brands closest to customers will growso, agencies working with customers will...
  55. 55. PREDICTIONSthe brands closest to customers will growso, agencies working with customers will...lead others because theyʼre closest to the data
  56. 56. PREDICTIONSthe brands closest to customers will growso, agencies working with customers will...lead others because theyʼre closest to the datacreate new revenue
  57. 57. PREDICTIONSthe brands closest to customers will growso, agencies working with customers will...lead others because theyʼre closest to the datacreate new revenuedefine new models
  58. 58. PREDICTIONSthe brands closest to customers will growso, agencies working with customers will...lead others because theyʼre closest to the datacreate new revenuedefine new modelssucceed as clients see them as more credible
  59. 59. "There are two ways for acompany to get better.Look at what youre good at,or start with the customerand work backwards,even if it requires newskills.”
  60. 60. Good luck!@martinbailie

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