Report: The Open-Source Ad Agency Model
| posted by Danielle SacksAs if dusty Madison Avenue (see Rehab: An Advertising Love Story) needed another punch in the gut: today, Adweek reported the latest study released by the Corporate Executive Board's Advertising and Marketing Roundtable, which reveals that the majority of brands today want to utilize an "open source" model of agencies, instead of the one-stop shop. As both the media landscape and consumers become more fragmented, big bulky ad agencies like the BBDO's and Y&R's of the world can't get at the nuance required by marketers. Instead, cobbling together a customized team of smaller firms that flaunt expertise in areas like ethnography and digital, is the new buffet-style roster of choice.
When we initially reported this trend back in October 2005 ("Is Madison Avenue Ready to Go Naked?"), we chronicled how "media agnostic" London-shop Naked Communications identifies the business problem, and then recruits the smartest agencies to execute. Similarly, brands like Coke were already starting to cherry-pick their mosaic of agencies, regardless of holding company. Since then, we've recently seen Nike shake up its own mix, handing the Running, Nike Plus, and Nike ID portion of the business to Miami/Boulder hot-shop Crispin Porter + Bogusky, despite its some 25-year love affair with Wieden + Kennedy, who's been producing iconic work for over two decades.
This isn't exactly what the Omnicoms and WPPs had in mind when they went off on acquisition sprees, and this certainly isn't going to help their bottom line. But what marketers are doing is keeping the playing field level: may the best idea producers and executors win, regardless of allegiance. And of course, keep the agencies on their toes like never before. Because if a Wieden + Kennedy can get dumped, anyone can.
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Recent Comments | 2 Total
May 15, 2007 at 8:21pm
DavidDoesn't that mean that Naked (and the myriad agencies of its ilk) become the next "one stop shop"? As a side note it seems that Naked in the US are going away from their "bias free" and "no execution" model and turning into a pale version of a creative boutique.
May 16, 2007 at 5:17am
MikejThe way Naked came to fore in the UK was as the industry split up their arrangements and were utilising multiple agencies.... there was one big problem. Marketing depts were not structured to deliver this. They struggled to identify the best agencies, but more importantly struggled to manage them and the brand throughout all communications consistently... integration was lacking. In comes Naked.... 'we can take your brand and make sure all these little agencies keep the consistency. We can also help you write overall strategies and briefs for them all....' 'Oh thank you Mr Naked.. that makes my job easier.'
But what is now happening in the UK is that Naked is getting dropped from some of its key large accounts. Because the client has restructured their business to do this inhouse. I love what Naked have done for the industry and they have done some great work. Im sure they will play this out in the US and other markets really well. What I am interested in now is how they reinvent themselves in the UK as the rest of the market has caught up. Transmedia Planning is a start(check out http://farisyakob.typepad.com/blog/2006/10/transmedia_plan.html).... but where to from here and how will other agencies / companies also adapt. Quite exciting I think