The biggest challenges agencies face
These are challenging times for agencies. Clients are demanding and margins are shrinking; technology companies are inching into agency turf; publishers themselves are setting up agencies; and, above all, the hunt for talent is critical.
At the Digiday Agency Summit in New Orleans this week, executives from shops like Razorfish, DigitsLBi, MEC and Havas gathered to discuss the hurdles they face and potential solutions. To kick things off, we asked attendees to write down the biggest challenges they face. Below is a sampling of what they said. See all submissions here.
Agencies typically lose one out of three employees each year. This turnover creates a huge amount of headaches, as well as extra costs. What’s more, despite the influx of tech tools, agencies remain firmly services businesses, utterly dependent on the brainpower of their workers. The problem is most acute, according to executives, among the youngest employees.
An agency is only as good as its clients. Marketers are under more pressure than ever and that rolls downhill. Agencies need to deliver — and figure out a way to get paid for it. Nearly everyone is in agreement that the fee-for-services model is clunky, if not downright broken, but few can say for sure what should replace it. Figuring this out remains top of mind for agencies.
Agencies need to figure out their identities. That means finding out where they want to go in five years. An agency like DigitasLBi has a heritage in digital, analytics and direct marketing, but is its future as a general marketing agency? All agencies are grappling with how to organize themselves for the future.
Pace of change
It’s a truism that never before have things changes so rapidly in media and marketing. Agencies often thrive on the confusion this creates. But it comes at a steep cost. Agencies are trying to get the day-to-day done while at the same time keeping abreast of constantly fragmenting digital media landscape.
‘Influencer deals are being paused’: As Facebook boycott begins in earnest, influencer marketing feels a sting
The latest move to pause influencer marketing comes as marketers are not only reconsidering where their ads appear and the kind of content they appear next to, but as they work to figure out how they can better support Black creators and Black-owned businesses following the Black Lives Matter (BLM) protests.
As Facebook boycott continues, here’s a look at what major marketers were spending on Facebook and Instagram
To get a sense of how much advertisers are pulling back from Facebook, Digiday reached out to ad-tracking firm Pathmatics. The company provided estimates for how much advertisers spent on the platform during July 2019 as well as from July 2019 to 2020.
Member Exclusive‘Performative posting’: As agencies share their equality values online, staffers say they have to do much more for Black employees than post
Agency employees and execs say agencies need to do more than make statements to be better for Black employees.
SponsoredFour ways to adapt to the changing publisher ecosystem in 2020
By Neal Sinno, general manager Americas at GeoEdge For marketers, 2020 started out with so much promise — but this changed rapidly as the industry faced a global epidemic head-on. Not only did our own daily routines come to a screeching halt, for many of us our professional lives did as well. Almost as quickly […]
‘Don’t want to piss off customers’: With manufacturing and exporting snarled, some DTC brands are adapting their advertising
Media buyers say that supply chain hiccups have caused them to pause or significantly reduce media spending anywhere from two weeks to five weeks for some DTC brands low on product inventory.
Beyond remote work: Bringing serendipity back to the office
This article is part of the Future of Work briefing, a weekly email with stories, interviews, trends and links about how work, workplaces and workforces are changing. Sign up here. Kai Micah Mills had been working in a different state from his work partner for years. More recently, though, his partner, Ben Adamsky, made the move […]