In today’s fast-paced digital era, the field of advertising has undergone a remarkable transformation. It’s hard to think that just a handful of years ago the hosts of The Today Show didn’t understand the concept of the internet. Today, billions of dollars are spent on online customer influence and acquisition.
Digital agencies are constantly faced with the challenge of staying ahead in a landscape that is characterized by emerging technologies, ever-evolving trends, and clients with increasingly high expectations. In fact, more companies are asking advertising agencies to do more with less budget.
How can companies stay competitive in these challenging times? There are many pieces to the puzzle, including operating model, talent, and strategic initiatives. Read on for our recommendations.
History Class
Back in the early days of the digital age (think: early 2000s), the prevailing sentiment among agencies was one of hesitancy towards embracing new technologies. Many professionals in the field preferred to rely on traditional advertising channels, viewing them as tried-and-true methods that had proven successful over time.
Why fix something that wasn’t broken?
But, as businesses started witnessing their competitors achieve tangible results through digital advertising, a pervasive fear of missing out (FOMO) began to take hold.
This fear of falling behind prompted a significant shift in advertising spending from traditional media to digital platforms. Suddenly, brands and agencies found themselves in a frantic race to adopt the latest trends and technologies, driven by the apprehension of being left in the dust by their competitors.
This period of transition witnessed an overcorrection, as companies scrambled to integrate digital strategies into their marketing efforts, sometimes without a comprehensive understanding of how to leverage these new tools effectively. Despite the initial turbulence, this pivotal moment marked the beginning of a new era in marketing, one that would forever change the way agencies approach their work.
A Sensible Approach
The agencies that thrive are the ones that don’t get caught up in the frenzy of new technologies. Instead, they take a more thoughtful and intentional approach. They keep an eye on the latest trends and innovations in AdTech and MarTech, but they don’t jump on every bandwagon.
These successful agencies act as trusted advisors to their clients, playing the role of consultants. They provide strategic recommendations that are tailored to their clients’ specific business objectives. By focusing on what truly makes sense for their clients, they steer them away from chasing after fleeting trends and guide them towards making calculated decisions that align with their long-term goals.
Choosing the Right Operating Model
To deliver top-notch work and make a profit, agencies need to do more than just understand their clients’ needs. They have to create an operating model that fits their clients’ unique requirements. This means collaborating closely and considering a few important factors:
Evolving Agency Models
One model gaining popularity is the use of pods. Traditionally, agencies would assign a dedicated team to work on a single client. However, with the pod model, agencies create cross-functional teams consisting of core talent responsible for specific areas of the business, such as strategy, creative, and analytics.
These pods then draw on subject matter experts (SMEs) who are deployed on a project basis, depending on the specific needs of the client. This approach allows agencies to ensure efficient resource allocation, avoiding overstaffing while maintaining flexibility to scale up or down as required. By leveraging the expertise of SMEs, agencies can tap into specialized knowledge and deliver targeted solutions for their clients.
In addition to the pod model, agencies are also exploring other innovative approaches, such as agile methodologies, where iterative and collaborative processes are embraced to adapt to changing client needs rapidly. This allows for greater flexibility, quicker turnaround times, and the ability to continuously optimize and improve marketing strategies.
Agencies are not only embracing new models but also reevaluating traditional structures and hierarchies. Flat organizational structures and cross-functional collaboration are becoming more prevalent, fostering a culture of creativity, innovation, and adaptability within agencies.
Talent Profiles
As advertising agencies adapt with the market, so must their talent. These are some of the soft skills that are becoming increasingly important for agency professionals.
Inquisitiveness: Talent that possesses a natural curiosity and a desire to stay informed about emerging trends and technologies. This enables them to understand and speak on the latest developments, even if not every new trend is adopted. Having an inquisitive mindset allows professionals to stay ahead of the curve and bring innovative ideas to client projects.
Resilience: As clients continue to expect more from agencies while budgets and timelines often shrink, resilience becomes a crucial trait for talent in the digital marketing field. The ability to adapt quickly, handle multiple projects simultaneously, and maintain high-quality outputs under pressure is essential.
Agility and Adaptability: The ability to pivot and adapt is essential in agency environments where projects frequently shift, priorities change, and new opportunities arise. Agencies seek talent who can seamlessly transition from one project to another, recalibrate their focus based on evolving needs, and quickly embrace new strategies or technologies.
Collaboration and Communication Skills: Agencies value talent who can collaborate seamlessly, contribute ideas, and work well in team environments. Strong communication skills, both written and verbal, are essential for conveying ideas, presenting strategies to clients, and building strong relationships with clients and colleagues.
Analytical and Data-Driven Mindset: The ability to interpret data, derive insights, and make data-backed decisions is highly valuable. Professionals who can effectively leverage data analytics tools and metrics to optimize campaigns, measure success, and identify areas for improvement are highly sought after.
Winning in the Digital Age
If you’re an agency looking to thrive in the rapidly shifting landscape, it’s crucial to adopt a sensible and strategic approach, establish efficient operating models, and attract the right talent. By striking a balance between innovation and client-centricity, agencies can deliver exceptional results amidst constant change.
If you need help finding the right talent for your advertising agency, contact Talentfoot today and let their expertise guide you toward building a winning team.
