- Why traditional agencies are dying. |
| Posted by Administrator (dmeyer) on Apr 15 2007 at 2:05 AM |
“Follow the money”
Paid media is devolving faster than the agency business model. Traditional agencies were built on the 15% commission and the 3 martini lunch…and the 30:second spot isn’t cutting it anymore. Simply stated, today’s clients expect a return on their investment.
“Um….we can do that.”
No they can’t (they outsource it). None but the very biggest agencies can have the right skills on staff for every situation. Marketing has become more targeted, and more specialized, and so have the job descriptions. Don’t get me wrong, there’s no shame in outsourcing (just the traditional agency rates and mark-up).
“Who’s up?”
The person working on your business at the traditional agency may not be who you think it is…it probably goes to whoever is available. And the winner is….nobody. In order to keep everyone ‘billable’ the creative suffers.
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