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