Is the Ad agency model dead?
Does the freezing of government spending and the onslaught on advertising agencies leads you to believe that the ad agency model is doomed to failure?
In the 80’s ad land was about personalities, glitz, glamour, big budgets and high spend. Agencies were concerned about size and used to boost about this.
Marketers are smarter and wiser and demand more for their money and want value add which most agencies can’t deliver.
Many clients believe the current agency model is broken and that many agencies had grown by acquisition and not through organic growth.
Agencies need to offer an integrated approach, consistent service and most important of all ROI.
Agency margins and the pressure of shareholders had driven agencies to become an industralised creative plants
I believe specialised boutique agencies will be the new model in the next decade.