The changing nature of agencies
Forrester Principal Analyst Jay Pattisall discusses the threats and changes that agencies are facing and what they need to do now to survive an uncertain future.
The agency landscape is being shaken up by some powerful forces. Advertising and PR giant WPP’s abysmal earnings signify a bigger trend among most agency holding companies — they aren’t growing like they used to.
Those powerful forces come in a variety of flavors: Clients are increasingly bringing agency resources and capabilities in house; spend is being shifted away from advertising to delivering customer experiences; and new competitors are arriving on the scene — big consultancies on a major acquisition spree are encroaching on agencies’ turf.
The dynamics aren’t all external; holding companies’ operating models are aged and lack customer centricity. The agency ecosphere across the customer life cycle is extremely fragmented — a direct conflict with companies’ efforts to take a more holistic, human approach to customer relationships.
In this episode, Jay Pattisall describes what the agencies of the future will look like as they face pressure to accelerate their own transformation and reformulation.