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
Agency structures today don’t look
anything like they used to during
the golden age of advertising.
Really?
Accounting

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

7.
Many agencies are reacting to the new multichannel marketplace by
attempting to become a new version of “full service” all over again

8.
Media companies as agencies
Production companies as agencies
Convergence?
Consulting firms as agencies
Media agencies as creative agencies

9.
PR firms as “full-service” agencies
Digital agencies as “full-service” agencies
Convergence?
Convergence
-- or --
Divergence?
Holding companies as “full-service” agencies

10.
“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

11.
“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

12.
The three approaches
marketers use to work with agencies

13.
1.
Best-of-Breed Model
Client
Models marketers use
to work with agencies

14.
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.
2.
Single Source Model
Client
Models marketers use
to work with agencies
Agency

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

20.
3.
Service Integrator Model
Client
Models marketers use
to work with agencies
Lead Agency

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

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

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

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

25.
Best-of Breed Model
Single Source Model
Larger client companies
National/global appeal
Smaller client companies
Local/regional appeal

26.
Best-of-Breed Model
Best-of-Breed Model

27.
Clients you work with
in this model (mostly)
Clients you work with
in this model (mostly)
Best-of-Breed
Model
Single Source
Model
Clients you work with
in this model (mostly)
Service Integrator
Model
How do clients access your services?

28.
The four dimensions
of agency business models

29.
Four dimensions of agency business models
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

30.
“Traditional” Creative Agency
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

31.
Creative Agency

32.
“Traditional” Public Relations Firm
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

33.
Public Relations Firm

34.
Public Relations Firm

35.
Public Relations Firm

36.
Design Firm
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

37.
Design Firm

38.
Design Firm

39.
“Traditional” Media Agency
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

40.
Media Agency

41.
Brand Development and Business Strategy Firm
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

42.
Brand Development and Business Strategy Firm

43.
Brand Development and Business Strategy Firm

44.
Agency Trading Desk
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

45.
Agency Trading Desk

46.
Agency Trading Desk

47.
Production Agency
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

48.
Production Agency

49.
Production Agency

50.
Production Agency

51.
Experiential Marketing Agency
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

52.
Experiential Marketing Agency

53.
Experiential Marketing Agency

54.
Digital Agency
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

55.
Digital Agency

56.
Digital Agency

57.
Experience Design Firm
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

58.
Experience Design Firm

59.
Experience Design Firm

60.
Analytics Firm
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

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

62.
Incubators and Venture Capital Firms
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution

63.
The
Product
The Brand
The
Purchase
The
Experience
Paid
Earned
Owned
Content
Channel
Ideation
Execution
Which dimensions are most common in your model?

64.
Client
% of income
related to
PRODUCT
% of income
related to
BRAND
% of income
related to
MARKETING
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
Where do you play on the value chain?
% of income
related to
EXPERIENCE

65.
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
What classes of media do you utilize?

66.
Client
% of income related to
CONTENT
% of income related to
CHANNELS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
Are you focused on content or channels?

67.
Client
% of income related to
IDEATION
% of income related to
EXECUTION
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
All other clients
Are you about ideation or execution?

68.
SINGLE
SOURCE
BEST OF
BREED
SERVICE
INTEGRATOR
2. What media classes you utilize
PAID
EARNED
OWNED
3. Focused on content or channel
CONTENT
CHANNEL
4. About ideation or execution
IDEATION
EXECUTION
5. Where you play on the value chain
PRODUCT
BRAND
1. How clients access your services
MARKETING
Mapping your current business model
EXPERIENCE

69.
“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

70.
www.IgnitionGroup.com
Propulsion Blog
www.IgnitionPropulsion.com
@TimWilliamsICC
@IgnitionGroup
www.linkedin.com/in/TimWilliamsICG
“Positioning for Professionals” by Tim Williams