Is Agency-As-A-Service the newly emerging business model?
The current landscape of agencies today
Global agencies have always come to dominate their industry after decades of acquiring smaller agencies in a range of specialty disciplines such as creative and branding services, digital, media planning and buying, public relations and market research. We can all agree that the current disruption in the market has definitely impacted the way agencies operate. This phenomenon has stirred curiosity among industry professionals on what the future of agency models hold.
What are the problems faced by agencies today?
The standard model has always been hierarchical, which on a largely fee-based economy dictates that the more levels there are, the more value there is to the agency model as there are new levels to charge. However, that model is broken as it prolongs the work approval process. Additionally, with too many layers, it leaves creatives wondering about what clients really want – on top of a million voices diluting the work while expanding the client’s budget.
Also, with the growing complexity of platforms and marketing channels in the current digital space, professional marketers have to focus on a wider range of marketing scope – from customer interactions to data strategy and delivery of the message to the audience. This has forced them to engage multiple agencies in order to work with multiple disciplines, resulting in redundancies, inefficiencies, and waste of resources such as money, time and manpower. Not forgetting, the constant decline of margins amidst greater and greater competition.
Leveraging on the tools available in the creative industry
Currently, agencies that could provide end-to-end service are more valuable than ever, as evident with the many creative tools and resources which have been created in the marketplace to help fulfill the demand. Particularly, boutique agencies should be on the lookout for a platform that has seamless integration of multiple tools. While the term SaaS is not too foreign in the technology space, the term AaaS which stands for Agency-As-A-Service is gaining momentum.
READ THE FULL ARTICLE HERE:
https://blog.designs.ai/2019/07/09/is-agency-as-a-service-the-newly-emerging-business-model/
Global agencies have always come to dominate their industry after decades of acquiring smaller agencies in a range of specialty disciplines such as creative and branding services, digital, media planning and buying, public relations and market research. We can all agree that the current disruption in the market has definitely impacted the way agencies operate. This phenomenon has stirred curiosity among industry professionals on what the future of agency models hold.
What are the problems faced by agencies today?
The standard model has always been hierarchical, which on a largely fee-based economy dictates that the more levels there are, the more value there is to the agency model as there are new levels to charge. However, that model is broken as it prolongs the work approval process. Additionally, with too many layers, it leaves creatives wondering about what clients really want – on top of a million voices diluting the work while expanding the client’s budget.
Also, with the growing complexity of platforms and marketing channels in the current digital space, professional marketers have to focus on a wider range of marketing scope – from customer interactions to data strategy and delivery of the message to the audience. This has forced them to engage multiple agencies in order to work with multiple disciplines, resulting in redundancies, inefficiencies, and waste of resources such as money, time and manpower. Not forgetting, the constant decline of margins amidst greater and greater competition.
Leveraging on the tools available in the creative industry
Currently, agencies that could provide end-to-end service are more valuable than ever, as evident with the many creative tools and resources which have been created in the marketplace to help fulfill the demand. Particularly, boutique agencies should be on the lookout for a platform that has seamless integration of multiple tools. While the term SaaS is not too foreign in the technology space, the term AaaS which stands for Agency-As-A-Service is gaining momentum.
READ THE FULL ARTICLE HERE:
https://blog.designs.ai/2019/07/09/is-agency-as-a-service-the-newly-emerging-business-model/
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