How can agencies reinvent themselves?

What a million (advertising) dollar question this is. And how we wish, there was a straightforward answer. Advertising is a sunset industry. Agencies are a dying breed. Agency business is not the same anymore. We’ve been hearing this for some time now – in varying degrees of decibel levels and bravado.

Is there truth in it? Of course, yes. Is it unreinventable? I don’t believe so. 

I still remember the day when I entered an agency for the first time in life. The vibe was electric. The chatter was intense. The passion was unmissable. 

I still remember the first client meeting I had. The vibe was electric. The chatter was intense. The passion was unmissable. 

While one of the above may still be happening, not sure if both are happening. And if happening frequently enough. 

First things first. Those in the business should stop drumming up that narrative themselves. And instead, look to correct it. As someone who has seen agencies and clients across geographies and mediums, here is my take.

Output vs Outcome 

Most, if not all, agencies are geared and modelled to produce output. The mediums and sizes differ. But it starts at the brief and ends at the film or a post or a Reel. Same for proactives. Same in pitches. Nothing wrong in that. But that it’s inadequate. And shortsighted. 

By definition, ours is a derived business – dependent completely on the client’s business. So, it’s only natural that we understand it, to a point that we can make a difference somewhere. Agencies are not doing that enough. Used to, once upon a time, but have fallen short, for a long time now.

In contrast, clients want and need that more than ever before. While Indian stats are hazy, research by The Drum revealed that 63% of marketers believe their agency partners need to better understand their business to provide more effective strategies. A study by the Association of National Advertisers (ANA) found that only 54% of clients believe their ad agencies understand their business well.

Agencies out of belief, not desperation, should look at models and ways to join at the hip with their clients. Does not matter how long is the association, or how small. The intent matters. So that the focus is on delivering agreed business outcomes – not just creative pieces or media plans.

Creating vs Creativity

Anything that is created within the scope and specs is not ‘creative’. The output-driven culture is impacting the very core of our business – creativity. The rise of so-called cost-effective digital (read social media) creative and content is eroding the craft. 

Sure, the economics have to work out. And the search to find that sweet spot between quality and quantity will continue. But the agencies need to protect and rather, augment their raison d'etre, such that their impact is felt at the business level. Which needs a shift in approach. Right from hiring to training and operating at the everyday level. 

In my early days, we could tell a certain work was done by agency X, agency Y was strong in Planning or someone had tremendous Media clout. Someone was known for Hindi prowess and there were Event/Activation specialists. And then, everyone was doing everything the same way. That depth is what made them thrive. Not that they were weak at other things. But they were a cut above the rest in that one thing. 

Agencies need to get that focus back. That mojo back. That pride back. That this ‘thing’ no one can do better than me. This paves the way for the kind of people they get, the kind of clients they pick, the kind of partners they choose, the business model they adopt, and eventually the chemistry that this creates.

Just look at the skillsets and services that a R/GA, W+K or AKQA houses. 

It’s agencies that use creativity to solve business problems with their special sauce that will flourish.

Interrupting vs Engaging

Most agencies are still approaching things with an ‘interrupting’ mindset. Traditional advertising as well as digital/social advertising interrupts user experiences. TV/broadcast advertising disrupts programming content, print ads interrupt reading material, digital banners interrupt browsing, in-app ads interrupt the activity and so on. 

Especially in the BANI world, the agencies need to shift towards the ‘engaging’ mindset. It will take its time, and there are business dynamics attached to it. But very few genuinely seem to be going in that direction. I used to hear the same when digital was in its infancy in the early 2000s. Agencies’ reluctance and delay in embracing it and making it a strength cost us as an industry.  

Adopting technologies and data will play a vital role in building the ‘engaging’ ecosystem. Which again, needs a different approach to arrive at an idea or a solution. Understanding the client’s product, how consumers experience it, how is it sold, what’s the critical make or break moment, what & where is the intervention needed... the Brief needs to capture a lot more than it possibly currently does. Which will come from a deep understanding of the client’s business, not just communication needs. 

We need to expand our view of what role we can play in these fast-changing times. Expand the definition of creativity and expand the scope of partnership with clients. IdeateLab is embracing the change and is on its way to reinvent itself as 'The Outcome People'. 

Oh. And that includes not calling ourselves an agency.

This article is penned by Raman R.S. Minhas, Chief Creative Officer at IdeateLab.

Disclaimer: The article features the opinion of the author and does not necessarily reflect the stance of the publication.