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Advertising Agency 2.0

Good piece in the September 24 issue of Advertising Age by Jennifer Rooney and Avi Dan on the fundamental components of what an advertising agency business model should look like.  The article points out 5 pillars for an agency:

Compensation - tied to value creation instead of labor.

Outsourcing - the agency should be an organizer of creative talent.

Revenue Streams - licensing of content.

Speed - as a strategic asset for an advertiser

Social Responsibility - needed to recruit talent

As a client I of multiple agencies I couldn't agree more.  While it sounds cliche, agency's will always be best at developing ideas that reinforce or change the meaning of brands.  The value creation is in the creation, articulation and evolution of the core positioning or value proposition. The challenge is in measuring this value and how it translates into the client's world of ROI and dashboards.

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