Ivan Pollard, General Mills CMO said during the Advertising Week that the models of agencies will change in the future.
The agencies of today
It’s always been the people who are setting the trend of marketing and the changes come from their changing consumer behaviors. With stats and analytics reigning the marketing strategies today, agencies will have to look for a way to find a balance between analytics and creativity.
Matt Ryan, CEO of Roth Ryan Hayes believes that marketers are important for agencies now and for the next years. Agencies need to hire talents with transactional capabilities such as programming, SEM and SEO, data gathering and analytics, and more.
According to predictions
Ivan Pollard forecasted that trends will continue to disrupt the agencies in the coming years. This prediction is backed up by major deals closed this year including the acquisition of Publicis by the marketing firm Epsilon for $4 billion. This is the biggest deal in agency history.
He then said that clients need partners who are capable of doing three things: draw up big, make creative ideas, and use their external voice to make insights that the brands can’t see themselves. Data and analytics will continue to play a big role in the future, and it will help in the strategic thinking of agencies. Firms will need to continually hire people who can merge creativity and data statistics to compete against bigger tech companies.
Ivan said that a successful agency is a small core team that outsources its administrative functions. Agencies will have to learn to make an equal effort to address their need for expertise between hiring and outsourcing. He further added that the agency of the future won’t have a definite structure like the traditional and old-fashioned agencies of today.
The younger generation is too diverse and values agility. The model of large agencies is too restrictive for them. This is a factor that will drive the change of agency models.
What does this mean?
Agencies can improve their strategies and adopt the changes that come with the change in customer behaviors. They also need to prepare their companies for the future including the rise of AI and voice technology. Agencies, marketers, and advertisers will have to keep changing their models to adapt to the changing landscape of technology.