The document discusses the evolving structure of advertising agencies. It notes that traditional full-service agency models are being replaced by more specialized structures. Some agencies are attempting to offer all services again under a "full-service" label through convergence, while others prefer divergence into specific areas like digital, creative, or media. Clients now use different models like best-of-breed, single source, or a lead agency to integrate services. The ideal agency structure is debated, as agencies struggle to define new business models to remain relevant in a fragmented media landscape.

1. Auditing Your Agency’s
Business Model
Presented by
Tim Williams

2. What is the ideal
agency structure?
By Hello Future www.hellofuture.set

3. How long should a
piece of string be?

4. Account
Management
Creative
Production
Media
Traffic
Accounting
Agency structures today don’t look
anything like they used to during
the golden age of advertising.
Really?

5. “An agency should be agile, forward thinking
and engaged in delivering growth by deploying
a wide range of tools and people, a far cry from
the sausage-factory it was 10 years ago. We
might be making software, content, binding
books, or creating theatre.
An agency engages itself in a diverse community
of creative people, from coders to copywriters.
It should be a place where there’s space for
marketing judo, where business conventions are
outmaneuvered and overthrown.”
Robert Harwood-Matthews
President, TBWA/Chiat/Day New York
From “Marketers Explain ‘What Is An Agency,’” Ad Exchanger

6. A short history of agency models
① The full-service model
② Unbundling creative and media
③ Further unbundling and specialization;
the client as integrator
④ ?

8. Many agencies are reacting to the new multichannel marketplace by
attempting to become a new version of “full service” all over again

9. Media agencies as creative agencies
Convergence?
Media companies as agencies
Consulting firms as agencies
Production companies as agencies

10. Digital agencies as “full-service” agencies
PR firms as “full-service” agencies
Holding companies as “full-service” agencies
Convergence
-- or --
Divergence?
Convergence?

11. “So here we are with traditional agencies struggling
to become digital agencies and digital agencies
struggling to become traditional agencies.
It just another big convergence mess and the losers
for now are the clients. On both sides you have
partially constructed solutions: brands suffer from
traditional agencies that are renovated with a digital
coat of paint but doing what they've always done,
and from digital agencies with incomplete
organizations and inexperienced traditional skills.”
Tony Quinn
Chairman, Society of Digital Agencies
From “Marketers Explain ‘What Is An Agency,’” Ad Exchanger

12. “I wish that the agencies would stick to
what they are good at. They try to do
everything, and they would be better
served to narrow their focus.
You can’t do everything, and if you try to do
everything, you do nothing. It drives me
crazy when the agency is trying to pitch you
every single service available.”
What clients think

13. The three approaches
marketers use to work with agencies

14. Client
1.
Best-of-Breed Model
Models marketers use
to work with agencies

15. 1.
Best-of-Breed Model
Models marketers use
to work with agencies

16. 1.
Best-of-Breed Model
Models marketers use
to work with agencies

17. 1.
Best-of-Breed Model
Models marketers use
to work with agencies

18. 1.
Best-of-Breed Model
Models marketers use
to work with agencies

19. Agency
2.
Single Source Model
Client
Models marketers use
to work with agencies

20. 2.
Single Source Model
Models marketers use
to work with agencies

21. Lead Agency
3.
Service Integrator Model
Client
Models marketers use
to work with agencies

22. 3.
Service Integrator Model
Models marketers use
to work with agencies

23. 3.
Service Integrator Model
Brand Agency Leader
Models marketers use
to work with agencies

24. 3.
Service Integrator Model
Models marketers use
to work with agencies

25. 3.
Service Integrator Model
Models marketers use
to work with agencies

26. Single Source Model
Smaller client companies
Local/regional appeal
Best-of Breed Model
Larger client companies
National/global appeal

27. Best-of-Breed Model
Best-of-Breed Model

28. How do clients access your services?
Best-of-Breed
Model
Single Source
Model
Service Integrator
Model
Clients you work with
in this model (mostly)
Clients you work with
in this model (mostly)
Clients you work with
in this model (mostly)

29. The four dimensions
of agency business models

30. The Brand
The
Experience
The
Purchase
The
Product
Four dimensions of agency business models
Paid
Owned
Earned
Channel
Content
Execution
Ideation

31. The Brand
The
Experience
The
Purchase
The
Product
“Traditional” Creative Agency
Paid
Owned
Earned
Channel
Content
Execution
Ideation

32. Creative Agency

33. The Brand
The
Experience
The
Purchase
The
Product
“Traditional” Public Relations Firm
Paid
Owned
Earned
Execution
Ideation
Channel
Content

34. Public Relations Firm

35. Public Relations Firm

36. Public Relations Firm

37. The Brand
The
Experience
The
Purchase
The
Product
Design Firm
Paid
Owned
Earned
Execution
Ideation
Channel
Content

38. Design Firm

39. Design Firm

40. The Brand
The
Experience
The
Purchase
The
Product
“Traditional” Media Agency
Paid
Owned
Earned
Channel
Content
Execution
Ideation

41. Media Agency

42. The Brand
The
Experience
The
Purchase
The
Product
Brand Development and Business Strategy Firm
Paid
Owned
Earned
Execution
Ideation
Channel
Content

43. Brand Development and Business Strategy Firm

44. Brand Development and Business Strategy Firm

45. The Brand
The
Experience
The
Purchase
The
Product
Agency Trading Desk
Paid
Owned
Earned
Execution
Ideation
Channel
Content

46. Agency Trading Desk

47. Agency Trading Desk

48. The Brand
The
Experience
The
Purchase
The
Product
Production Agency
Paid
Owned
Earned
Execution
Ideation
Channel
Content

49. Production Agency

50. Production Agency

51. Production Agency

52. The Brand
The
Experience
The
Purchase
The
Product
Experiential Marketing Agency
Paid
Owned
Earned
Execution
Ideation
Channel
Content

53. Experiential Marketing Agency

54. Experiential Marketing Agency

55. The Brand
The
Experience
The
Purchase
The
Product
Digital Agency
Paid
Owned
Earned
Channel
Content
Execution
Ideation

56. Digital Agency

57. Digital Agency

58. The Brand
The
Experience
The
Purchase
The
Product
Experience Design Firm
Paid
Owned
Earned
Execution
Ideation
Channel
Content

59. Experience Design Firm

60. Experience Design Firm

61. The Brand
The
Experience
The
Purchase
The
Product
Analytics Firm
Paid
Owned
Earned
Execution
Ideation
Channel
Content

63. The Brand
The
Experience
The
Purchase
The
Product
Product Development Firm
Paid
Owned
Earned
Execution
Ideation
Channel
Content

67. The Brand
The
Experience
The
Purchase
The
Product
Incubators and Venture Capital Firms
Paid
Owned
Earned
Execution
Ideation
Channel
Content

71. The Brand
The
Experience
The
Purchase
The
Product
Paid
Owned
Earned
Channel
Content
Execution
Ideation
Which dimensions are most common in your model?

72. Where do you play on the value chain?
Client
% of income
related to
PRODUCT
% of income
related to
BRAND
% of income
related to
MARKETING
% of income
related to
EXPERIENCE
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients

73. What classes of media do you utilize?
Client
% of income
related to
PAID
% of income
related to
EARNED
% of income
related to
OWNED
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients

74. Are you focused on content or channels?
Client
% of income related to
CONTENT
% of income related to
CHANNELS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients

75. Are you about ideation or execution?
Client
% of income related to
IDEATION
% of income related to
EXECUTION
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients

76. Mapping your current business model
1. How clients access your services
2. What media classes you utilize
PRODUCT
BRAND
MARKETING
EXPERIENCE
PAID
EARNED
OWNED
CONTENT
CHANNEL
IDEATION
EXECUTION
3. Focused on content or channel
4. About ideation or execution
5. Where you play on the value chain
BEST OF
BREED
SINGLE
SOURCE
SERVICE
INTEGRATOR

77. “If we don’t kill our old
business models, someone else
will. But if we are ruthlessly
curious, learn relentlessly, and
fail harder, we get to reinvent
the business of persuasive
communication for the
connected age.”
Renny Gleeson
Weiden+Kennedy

78. www.IgnitionGroup.com
@TimWilliamsICC
@IgnitionGroup
www.linkedin.com/in/TimWilliamsICG
“Positioning for Professionals” by Tim Williams
Propulsion Blog
www.IgnitionPropulsion.com