The Advertising Agency is Dead
Just like everything else in our world, the ad industry is changing
We’ve seen it coming for a while now: the traditional advertising agency – the kind that specializes in mass media and mass impact – is quickly becoming a thing of the past.
The three major factors that are redefining our industry are the very same factors that are impacting almost every other element of our lives. These influencers are an increasingly competitive economy, advancements in technology and – a direct influence of the first two – elevated client demands.
These factors have created a world where advertising and marketing efforts must be more targeted, measurable and held to the highest of performance standards. When was the last time you implemented a campaign where moving the needle on awareness was the sole key performance indicator? Nothing comes to mind? That’s because our world is demanding more than just awareness and favorability. Walk into any advertising agency and conversations around the words conversion, acquisition and one-to-one, two-way communications is the chatter that fills the halls. At the end of the day, when the C-suite is evaluating marketing efforts and setting a budget for the upcoming year, it is the harder lead and business metrics that they care about. Soft metrics are nice, and an important part of the top portion of your funnel – but they are not going to lead to larger marketing budgets and end-of-year bonuses.
Here at Hothouse, we’ve not only adapted to these new demands, we’ve embraced them. After 19 years of being in the “change” business, this might be our biggest shift yet. At one time, the words “Advertising Agency” meant just that – an agency that developed advertisements. Now, due to a competitive economy and a constant flow of new tech inventions, we’re doing much more than just creating ads. We’re developing brands, we’re consulting on how clients should go to market and compete in those markets, we’re conducting research, creating media plans, leading production, developing digital marketing campaigns and tackling the ever-changing world of social media.
We’ve changed our way of seeing, thinking and doing, developing custom solutions that not only address the issues companies are facing, but solving them in a way that sets our clients apart from competitors. We find ways to evaluate every point of contact with our brands, and we go beyond the surface to find the untapped opportunities that unveil an entirely different world of possibilities. We think of ourselves as a marketing solutions company that’s dedicated to figuring out what works best for our clients right now, not what worked for everyone else 20 years ago.
The challenge for the modern agency is no longer about adapting to change. Rather, the challenge is about adapting to change in a way that’s better and smarter than everyone else. That means seamlessly blending services, technology, actionable insights and analytics to create consumer-influenced communications across a variety of delivery channels – all optimizable in real-time and targeted to the individual. How we go about adapting to these new expectations will be the defining metric between success and failure in the future evolution of the advertising agency.