Why Some Agencies Are Dying

I have experienced a crazy trend in the past six months, the client movement to have multiple and diverse agencies working together. Tenacity5 has already experienced five partnering deals with other agencies this year and it’s only July. I may have partnered five times total in the past five years preceding 2015.

Sharing the revenue pie is not something most agencies do well. However, some agencies are suffering as a result. Others are dying. They cannot adapt to the new collaborative approach clients are demanding.

My friend Patrick Ashamalla sent me this year’s SODA Report (see the below chart), which showed that highly specialized players are taking a larger priority. Pair this with the the whole “agency of record is dying” trend and you have a movement.

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CMOs don’t want to hire a generalist firm to execute their entire scope of work. It’s not reasonable to expect a one size fits all agency will do a decent job on all of activities in a significant scope of work. CMOs don’t believe agencies that say they can do it all. In fact, they find such claims suspect.

The Collaboration Economy

Collaborate Well
Image Courtesy of Wild Blue Yonder.

Corroborating this trend was Gary Duke’s excellent Wild Blue Yonder research presented to DC Ad Club last week. Gary dubbed this the Polygamous Client trend, and noted it is spreading like wildfire across the Fortune 1000.

Those agencies who want to remain competitive need to become more agile, collaborative and highly specialized. Those who are not evolving and insist on the mass integrated marcomm agency role are shrinking.

“Agencies must take on a collaborative approach with other agencies because they simply don’t have any other choice today,” said Gary Duke via email. “It’s not only what clients expect — it’s what they demand of their agency partners. If it’s not in your DNA to play well with others in the sandbox, then you just better pick up your toys and go home.”

Of the agency efforts I have participated on this year, some have been super fluid and one in particular was a disaster. And in that case the primary partner clearly wanted all pieces of the biz, was not collaborative or transparent, and ignored other agency/partner recommendations in spite of a clear lack of competency in some project areas. No surprise: The relationship and overall initiative blew up.

The Nimble Agency of Now

Collaboration Scores
Image Courtesy of Wild Blue Yonder.

Jeremiah Owyang likes to talk about Crowd Companies, businesses that share resources on the Internet. Well, the agency business has not quite devolved to that point, though you could argue that companies like crowdSPRING have eroded the bottom side of the market.

CMOs want access to agencies or agency teams with wide spread resources, usually freelancers and other partners. That means an agency must work well with others, share scope, and bring on third party resources as needed.

In essence, they want more nimble partners who have access to diverse capabilities. They want best of breed in every marketing function. Integration is still needed, but instead of it being under one roof, marketing organizations want agencies that can assemble or play with assembled teams that possess superior niche skill sets.

These are shared resources in many ways. That means integration is a result of project management instead of scope or overall billing. Project management across diverse creative assets becomes a necessary skill for the strategy lead. Duke hammered this point home over and over again in his presentation.

Here are some steps I am taking as a result of this trend:

  • Building a diverse agency partner network to refer and garner referrals
  • Doubling down on focus and expertise in digital content and platform creation
  • Avoiding services spread into areas that we are not good at, such as SEO, media buying, branding, media relations, etc.
  • Building stronger project management skillsets
  • Taking an adaptive attitude towards strategy, specifically be willing to drive or psimply fulfill a role as needed.

Are you seeing a similar trend with your business?

5 Marketing Myths

Myths and misconceptions are abound in the marketing blogosphere. Sometimes I can’t help but think that we have a pseudo religion about the way the industry is.

In actuality, a small group of blogging voices laud these best practices and ideas based on their experiences or beliefs, which for all intents and purposes are valid. From a research perspective this data represents a small sampling, in turn creating myths about marketing that don’t apply to the whole profession. Here are five common marketing myths I hear about frequently.

1) Analytics Make Your Marketing Program Succeed

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We are in the midst of a data revolution with marketers racing to extrapolate reports into meaningful outcomes. Marketers promise that the use of analytics will deliver the ROI they are looking for. Let’s not get too excited here. Analytics will inform marketing toward the best way to encourage desired customer behaviors. They will not make a brand better at marketing (myth revealed).

In the words of Kevin Spacey (hat tip to to Jay Acunzo and his excellent Content Marketing World speech), “It’s the creative, stupid.”

Creative alone is wild and unpredictable. Data alone informs direction, but can’t stop crap communicators from producing, well, more crap. Together, informed creative is flat out dangerous.

2) Visual Media Is a Snack

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Write a great blog post and publish it with no visual media assets at all. Publish a great photo (which takes as much time to shoot and produce, by the way), video or infographic without words. Post both on your social networks and see which does better for engagement, shares and inbound traffic.

Look, you need words with visual assets for keywords and search ranking, but don’t kid yourself. One medium is the meal today, the other is the side dish. Snackable media is not just a marketing myth, it is also a misnomer.

3) Blogs Are the First Tactic of the Content Marketing Future

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Blogs are not the first go tactic in the content marketing future. They are the past and the present, but in reality text based media is not well consumed on small devices. And smartphones and other portable media are becoming the primary Internet access device for most Americans.

I wonder what its going to be like reading this blog post on an Apple Watch. Maybe Siri will read it to me. Or she’ll serve me a “snack” instead.

A study Tenacity5 managed on behalf of Vocus last June with Market Connections revealed as much. Of all the distribution channels noted by marketing survey respondents, blogging was considered the least effective. Only 35 percent rated it as a 4 or 5 (highest). One-quarter of respondents didn’t even use a blog.

It’s almost 2015 folks, this isn’t about a new technology becoming widely adopted anymore. Brands would rather invest elsewhere.

To be clear, blogs in their conventional form have a role on the web site for customers and stakeholders interested in a brand’s topics. This is especially useful if the blog posts help resolve the same problems the brand is addressing with its other offerings (hat tip #2 to Jay Acunzo). Every blog post has an opportunity to delight, brand and empower people to opt into your total customer experience. But you better have a bigger strategy.

4) Video Is Easy and Cheap

No, video is not easy and cheap, and if you shoot it on your iPhone or camera you will produce low-quality crap. Easy video is a huge marketing myth.

If you want quality videos, you invariably have to invest in a pro cameraperson/producer or not more. There is a reason why 71 percent of CMO Council survey respondents are predicting video spending will increase by 5 percent or more.

5) CMOs Trust Influencers

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Well, this one kind of hurts. I thought my online profile was everything. That was until I read a recent SiriusDecisions report that showed CMOs trust marketing bloggers and influencers the least of all sources when it comes to making purchase decisions.

Then I kind of thought about most of my conversations about influencers with CMOs and I got it. They just want influencers to feel important so they will say good things about them. Duh. The marketing myth is that CMOs actually believe in what influencers are saying (unless it is conveniently favorable to them). Instead they think bloggers are trying to sell them consulting services or something.

Disappointing. Perhaps I’ll become a reality TV star instead ;) Or a photographer.

What do you think? Have any marketing myths to add to the list?

Does a Social Score Make a CMO?

A recent infographic published on a Forbes blog ranks the top 20 Fortune 100 CMOs based on social scoring. The graphic poses an interesting question: Should CMOs be judged by their individual social media prowess?

The methodology for the social scores released in the infographic was not released, and there was an incredibly wide disparity between follower counts and placement in the Top 20. It’s hard to consider the scores valid because we don’t know the criteria used for the algorithm.

One would hope Forbes would insist authors provide information sources and research criteria, even when it’s published under the guise of a blog. More on this tomorrow. Today let’s address the question of CMOs and social media scores.

Clearly influencers have become an important part of marketing.

The first group of people to tell you that is the influencer/social media community. That’s because we as a group overvalue ourselves.

Continue reading “Does a Social Score Make a CMO?”

Marketing in the Round Infographic: The Tip of the Iceberg

Marketing in the Round Infographic

Today, Gini Dietrich and I launch Marketing in the Round in Chicago with a virtual (1 ET) U-Stream book bomb and a live (5 CT) networking event! Read Gini’s post here about how the book happened.

Immersed in the era of visual media, what better way to start the day than with an infographic of statistics used in the book (also available directly on Flickr and Scribd). The RAD Campaign designed infographic demonstrates how today’s online marketing conversation, actual business expenditures, and business selection of tactics are not in synch.

Continue reading “Marketing in the Round Infographic: The Tip of the Iceberg”