Agencies so far have been complex, slow and lacking in transparency.
This article argues that advertising agencies must leverage “inflections points” like the current pandemic and use the opportunity to rethink their business models. The piece shares Forrester data which states that ad spend in the US would drop 25% in 2020.
Given this, CMOs could be more involved in how their agencies recruit, train and retain talent. Advertisers may have to rethink how they compensate agencies by incentivising tech adoption, innovation, data analytics and more.
The author notes that many agencies might emerge from the pandemic weaker. Those that survive, will be assessed by advertisers via hiring agency consultants. With shift to digital acceleration and audience fragmentation, the opportunities now for small, independent, digitally-focussed agencies are greater.
[5 minute read]