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Auditing Your Agency’s
Business Model

Presented by
Tim Williams
What is the ideal
agency structure?

By Hello Future www.hellofuture.set
How long should a
piece of string be?
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
“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
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
Auditing Your Agency's Business Model
Many agencies are reacting to the new multichannel marketplace by
attempting to become a new version of “full service” all over again
Media companies as agencies

Production companies as agencies
Convergence?

Consulting firms as agencies

Media agencies as creative agencies
PR firms as “full-service” agencies

Digital agencies as “full-service” agencies
Convergence?

Convergence
-- or --
Divergence?
Holding companies as “full-service” agencies
“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
“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
The three approaches

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

Client

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

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

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

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

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

Client

Models marketers use 
to work with agencies

Agency
2. 
Single Source Model

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

Client

Models marketers use 
to work with agencies

Lead Agency
3. 
Service Integrator Model

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

Brand Agency Leader

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

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

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

Single Source Model

Larger client companies
National/global appeal

Smaller client companies
Local/regional appeal
Best-of-Breed Model

Best-of-Breed Model
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?
The four dimensions
of agency business models
Four dimensions of agency business models

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
“Traditional” Creative Agency

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Creative Agency
“Traditional” Public Relations Firm

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Public Relations Firm
Public Relations Firm
Public Relations Firm
Design Firm

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Design Firm
Design Firm
“Traditional” Media Agency

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Media Agency
Brand Development and Business Strategy Firm

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Brand Development and Business Strategy Firm
Brand Development and Business Strategy Firm
Agency Trading Desk

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Agency Trading Desk
Agency Trading Desk
Production Agency

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Production Agency
Production Agency
Production Agency
Experiential Marketing Agency

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Experiential Marketing Agency
Experiential Marketing Agency
Digital Agency

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Digital Agency
Digital Agency
Experience Design Firm

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Experience Design Firm
Experience Design Firm
Analytics Firm

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Auditing Your Agency's Business Model
Product Development Firm

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Auditing Your Agency's Business Model
Auditing Your Agency's Business Model
Auditing Your Agency's Business Model
Incubators and Venture Capital Firms

The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution
Auditing Your Agency's Business Model
Auditing Your Agency's Business Model
Auditing Your Agency's Business Model
The
Product

The Brand

The
Purchase

The
Experience

Paid

Earned

Owned

Content

Channel

Ideation

Execution

Which dimensions are most common in your model?
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
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?
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?
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?
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
“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
www.IgnitionGroup.com

Propulsion Blog
www.IgnitionPropulsion.com

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

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