This is an increasingly common question, as many factors - such as technological change, pressure for high performance, and shortened deadlines - encourage agencies to reconfigure the way they work.
One of the main points of the report "The Future of Agencies" is the potential conflict between "systems and empathy" in agencies and how this dynamic may shape the future. It notes that there is enormous value agencies can offer clients through the use of "systems," such as data, technology, and technical delivery at scale, but also the value of empathy they can provide, for example: human focus and creativity.
Convergence of Systems and Empathy
Systems versus Empathy
The report suggests there is already evidence of convergence between these two characteristics, with various large consulting firms specializing in systems and professional services seeking creative agencies. At the same time, agency holding companies are strengthening their data and technology expertise to combine it with creative capabilities.
Amelia Torode, former head of strategy at TBWA \\ London, argues that most traditional agencies lean toward empathy, and achieving the right balance through system-based capabilities requires training and professional development.
"Agencies need to reinvest money in truly professional training. If they don't, I think we will lose significantly to consultancies that invest in training," she comments.
Torode also predicts that the agency world will see a "talent drain" over the next five to ten years, as the most talented people leave agency structures to choose their own projects as freelancers. Agencies must try new operating models to avoid this and to make it easier for clients to work with them.
Chrissie Saunders, who joined the content managers' ranks last year, says all agencies should show greater flexibility in contracting with clients.
"Agencies will need to offer people more tailored packages and offer better value for money," says Chrissie Saunders.
This view is reflected in the IPA and Econsultancy report, which identifies a significant shift toward more flexible working practices in many agencies. Two years ago, these approaches were limited to the most progressive agencies; now it is clear that this way of working is emerging as a fundamental trend shaping the future of agency-client engagement.
The Role of Technology
Technology as a Driver of Change
The increasingly important role of technology in agency offerings is a key theme throughout the report. It states that agencies have clear opportunities to deliver benefits to clients not only by learning about new technologies, but also by helping to operationalize and then optimize them.
"The customer service revolution requires seamlessly integrating marketing and communications with deeper brand experience through technology and increasing automation," the report reads.
Summary
Marketing agencies face the challenge of reconciling two worlds: on one hand, data-driven systems and technology; on the other, empathy and creativity. The "The Future of Agencies" report shows that the greatest opportunities belong to entities able to combine both competencies.
However, the industry faces a drain of its most talented employees toward freelancing, so new collaboration models and greater flexibility in client relationships will be key. Agencies that invest in professional training and flexible service packages are most likely to find their place in the coming decade.
