The agency model is broken (post #2)
In one of my past posts, I wrote about the broken advertising agency model. In my previous rant I wrote about clients that hire agencies for more sales but manage the agency as a cost center instead of a revenue center. As a result, agencies default to what they know. The Tribble Agency compares agencies to diapers and recommends that clients change them often until they understand the concept of ROI, stop the drug addiction to flash, and try to help the client rather than hurt them in costs.
A few weeks back, I emailed Pete Burgeson at Crowdspring and asked him to share his thoughts about what the agency of the future would look like. As background, CrowdSpring crowd sources graphic design. Companies put graphic design jobs out for bid on Crowdspring then graphic designers submit their ideas. The company picks a favorite, the designer gets paid. As you can imagine, this model threatens the livelyhood of some agencies. But some forward looking agencies are starting to explore crowdsourcing as a possible opportunity to reduce cost, better manage freelancers and possibly reinvent the way they engage with clients.
According to Pete, the agency model is going to be changing in a number of ways. “One of the more interesting and relevant to us is going to be how I think agencies will interact with clients. What we’re seeing is more and more shops crop up that have little to no interest in supplying the creative work in-house. Sure, there will always be those shops – but they’re called creative shops and they’re very different. The more ‘traditional’ shops are all trying to figure out how they can use more freelancers or (maybe one day) crowdsourcing to come up with ideation phase of the project. From there, they can sort through the ideas and bring their true expertise to the table – strategy – and then hone in on a winner, perfect it and execute the shit out of it.”
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