07 Oct

Can new divisions heal old agencies? (Transformation)

It looks like agencies are still having to work hard to carve out a role for themselves, and to persuade clients to work with them on more “upstream” thinking. These new units might also be a way to reinvent the charging model by offering services that are more easily categorised as consultancy, and so can be billed for as brainpower rather than man hours.

With big agencies getting even bigger – witness VMLY&R and Wavemaker’s origins in Maxus and MEC – there’s a need to offer clients an entry point on a smaller, more agile scale as a way to stave off the threat from consultancies, and to stop agency work from being commoditised.

Elspeth Lynn, Geometry ECD says: “Our job is to help our clients innovate and exploit channels, unlock new categories and build new products to drive growth. Innovation, we believe, sits at the core of this.”

It feels like agencies shouldn’t really have to be spelling this out, but if it reassures clients that they have a handle on transformation, then it’s got to be worth a go. If the mergers keep coming, though, creating these divisions can be nothing more than tinkering at the edges.

Source: https://www.moreaboutadvertising.com/2018/10/transformation-can-new-divisions-heal-old-agencies/

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