how marketing services agencies can build growth models

The Future of Agencies

GROWTHNeon Nelly

Demographic and social change

Shift in economic powerRapid urbanisation

Resource scarcityTechnological breakthroughs

Neon Nelly

Forrester Research believes today's ad agencies are not well-structured to take on tomorrow's marketing challenges… the research firm paints a grim view of the current state of advertising, which it believes is in "a world of hurt”.- the organization of agencies around specific skill

sets is the root of their problems.- needing to move from making messages to

establishing community connections.2008

Share of firms 2002-2005

Share of job creation

2002 - 2005

Share of firms 2005-2009

Share of job creation

2005-2009

0

10

20

30

40

50

60

70

80

90

100

High growth firms OtherSource: ONS Business Structure Database Neon Nelly

Contribution of high growth firms to job creation

IPG

Source Revenue figures Ad Age 2014 Neon Nelly

4

2 7

1

3

5

6Accenture

WPP

Omnicom Publicis

Dentsu

Havas

“CMOs are looking for a partner which can bring new ideas and innovative thinking to improve both the customer and the employee experience.” Roxanne Taylor, Accenture.

IPG

Neon Nelly

5

2 7

1

4

6

3

AccountantsConsultants WPP

Omnicom Publicis

Dentsu

Havas

2018?

Commercial in Confidence Neon Nelly© 2014 Woodmansterne publications

Source: Future Foundation/IPA. The future of Marketing and Agencies 2025Neon Nelly

FasterCheap

erBetterNewer Neon Nelly

Add Value

InnovateCollaborate

Volume & Standardisation

Neon Nelly

Thinkers & Doers

100% ThinkersHead honcho

Even less head honcho

Even less head honcho

Even less head honcho

Not so head honcho

EmpowerSouthwest Airlines Cloud computing On line Retailer Technology

Focus on what truly matters

It’s a mindset

Outsource the

peripheral stuff

Bendy rules policy

Everyone is accountable

Want a job title? Go and work

somewhere else

Decision making at

lowest level

Staff empowered

to have ideas

Self-organising

teams

Decentralised power

Player-coaches

Customer experiences

not organisation

function Neon Nelly

Leadership and

delegation

Presentation skills

Strategy Bootcamp

Dealing with difficult

clients

Empowered teams

Network and

collaboration

Prototype and test

Focus on customer

value

Knowers Growers

Experiment

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Commercial in Confidence Neon Nelly

Chaos often breeds life,when order breeds habit

Commercial in Confidence

Freemium Model

Internal StructureExternal

Ways of working

New skills

Client Agency

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Transactional

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Stability to maintaincurrent rigid bounded model

Flexibilitythrough a collaborative evolving model

AgencyClient

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Neon Nelly

Advocates

Influencers

Workforce

Customers

Appdevelope

rs

Consultants

Client Ecosystem

In the system means growth opportunities

Legacy AgencyOperating System

Organise by role for repeatability and process

Organise for the capacity to plug into networks/client programmes

New AgencyOperating System

Optimise the efficiency of the model

Optimise the capacity of the organisation to adapt

Retainer compensation based on hourly billing

Hybrid models with project work and value-based pricing

Source: Fitzpatrick 2014 Firestarter NYC Neon Nelly

Tell them what they want to hearA culture revolution

Tell the truth

Neon Nelly

We help marketing services agencies

build better business modelsContact us:

Lesley@neonnelly.comFollow us on:@Donnalelly