Why agencies don't get digital - our readers speak
One only has to read the pages of this publication to see the attention brands and agencies are putting on their digital strategies and abilities. Despite the recession affecting overall marketing and advertising spending, most brands are upping their digital spends, whilst most agencies are busy expanding their digital capabilities. However besides hits, click-throughs and other self-serving metrics, what exactly are clients and agencies getting out of this seemingly cosy relationship? It's actually very little when measured against the contribution most brand's digital strategies could be making given emerging technology's ability to engage and build affinity with customers.
Despite the commonly held belief that technology has forged closer relationships, the gap has actually widened between messages and customers. The very technology that allows us to micro-filter our digital consumption, from playlists to RSS feeds, DVR's to BitTorrent, means we generally go and get exactly what we want whilst taking little notice of the messages around the periphery. It's this periphery where most brands digital communications reside and where the extent of most agencies digital abilities ends. Unfortunately for most clients, this inability of their agencies to understand and exploit emerging digital technology means they're unlikely to move beyond it
The first mistake agencies typically make is the insistence of applying old world models to new world technology. The old model of creating a message and sticking it into a paid space is counterproductive in digital environments. Search engine optimization and other tactics that can help focus attention still inevitably lead to a message in a box, whether it's a banner ad, website, micro-site or other web-based trinkets such as widgets. What's typically not exploited is the opportunity to create unique channels of engagement and opportunities that go beyond messages in boxes.
Take most brand websites for instance. They reside firmly in the digital periphery of engagement because they usually offer nothing more than some pictures and words that do little to help a customer engage and build affinity with their brands. Sure, we might go there for some occasionally useful product or service information, or maybe a promotion but how often do we return? And how often does a brand's website make us feel better about them or solicit a positive reappraisal or action?
The second mistake agencies make relates to the way agencies source, hire and manage their digital talent. Whilst most CEO's and MD's recognize the need to pay ‘traditional' creatives higher salaries within the agency as a whole, they're typically only competing against other agencies for the services of this talent. Yet digital talent is rarer, and a client would be hard pressed to find an agency where the digital talent is better remunerated than their old world creative colleagues.
Beyond talent, most agency digital ‘evangelists', the digital suits and planners, are at best astute observers of what's been done before. They can demonstrate their ability to google by collating examples of ‘best practice' and suggest similar strategies and execution. They can spot trends and profess insights such as, ‘it's all about Web 2.0 and online communities' and suggest clients evolve their strategies likewise, but they lack creativity and fresh thinking. Worse still is the fundamental disconnect between ideation and execution that clients experience. Most agencies technical competency and production capability is limited to the bare basics so clients may as well forget about gaming platforms, mobile and other digital channels.
The acquisition of ‘hotshop' digital agencies by large agencies typically doesn't improve capability either because of the forced adoption of these old world practices. Nothing kills creativity and innovation quicker in such a rapidly developing space than timesheets and the replication of execution.
If ‘innovate or die' is the prevailing maxim in other digital industries, then most agency digital solutions are dead on arrival in the eyes of consumers. This is the third and most significant failure of most agency digital offerings. Emerging digital technology allows us to be entertained, informed and better connected when we want and increasingly on our own terms.
So how can clients and agencies get more return on their digital efforts? How can brands benefit from the proliferation of digital spaces, devices and platforms? Their plans should first be rooted in originality and innovation. Digital leadership means innovation leadership in emerging digital technologies, with the leaders being rewarded for being first.
Agencies and clients should also expand their horizons by looking beyond the congested web and into other digital platforms. Take cellular mobile as an example. Despite mobile handsets being the most ubiquitous access point to digital technology in both developed and developing markets, most brands mobile engagement strategies and execution rarely goes beyond text messaging, wallpapers and other simple tactics; the extent of most agencies proficiency on this platform is typically weak.
Cross-platform integration and convergence represents the most significant opportunity in digital innovation to make difference to consumers lives. Integrating content via web, mobile, gaming and other digital platforms provides significant opportunities to simplify consumers lives and the way they interact with your brand.
Agencies and clients can innovate technically if they applied the same practices that are common place in TV production. An agency wouldn't attempt to direct and produce a TVC by themselves. By engaging directors and production houses to take their script or concept and applying specialist skills, techniques and technology to bring the idea to life, agencies and clients are giving their concept the best possible chance to present an engaging narrative to consumers.
If agencies stick to what they do best - creating ideas and stories rooted in strategic insights - and engage technically innovative and proficient third parties to produce and execute these ideas, they'll soon find the true power of digital spaces and emerging technology benefiting the brands they represent. And with that, their clients will see their digital investments delivering results both for their brand and their bottom line.
Phil Carroll is director of business and strategy for Breakdesign in Singapore. Breakdesign specialises in digital technology design and development.



Phil,
This is a problem that extends 'creative' agencies- and grips the media agencies, the PR agencies and even the Digital specialists.
I have myself blogged about some points mentioned here:
*Tips for agencies:
http://chasingthestorm.com/this-digital-thing-tips-for-agencies-to-get-it-right/
*The possible growth of digital in recession here:
http://chasingthestorm.com/recession-digital-media-world-says-no-sweat/
Being an engagement evangelist myself- I do agree with most points and would like to add some more.
1) Digital Media marketing can be as scientific, innovative or as self serving as the agencies that execute them.Unfortunately, there is more of the latter than the former ones
2) We have seen articles and pointers like this over the years- however little has changed when it comes to media spends- we still spend 1%-3% of our media budgets on digital
3) Both brands and agencies are struggling hard to figure out a paradigm and it amazes me why and how they haven't- as yet
4)One of the culprits is as you rightly mentioned - resources. Add to that-ideologies Mainstream agencies are run by 'hardcore' professionals (you know what I mean) who rarely (want to) understand the new thinking- and digital is not banners, search or social media- it is a new way of thinking.
5) The possible shaking up of status quo makes people insecure. The existing ones either lay off the entire burden of figuring out a paradigm to a digital hire or want to solely dictate terms. Well, that hasn't worked yet. And we lost a whole lot of time
6) I also agree that there is a huge relevance and importance in mobilizing the niche/third party specialists. Both by clients and agencies. In this extremely fast paced and dynamic ecosystem- only a creative collaboration can help sustain the elusive attention from customers
Shalabh Pandey
chasingthestorm.com
Why agencies don't get digital
Commenting from the article my humble point of view...
Firstly, having been focused on this industry for the short past 7 years, i strongly do think that agencies DO want to get Digital and this has been more apparent in the past couple of years than ever before.
If you do attend any sort of industry conference, even in traditional media conferences, 70% of the speakers and content have been focused on the digital medium. It has just been unfortunate that while top media and creative agency CEO's have been touting this as a really important medium, the execution and know how from the rest of the organisation has been lacking and thus been largely a "Lip Service" which is demonstrated by the lack of marketing dollars to the overall ADEX against traditional media.
As a personal issue, I believe that online marketeers have also contributed to this confusion by contributing to a mindset from wannabe digital believers thinking that this is too difficult and confusing a medium to deal with. Moreso, making less and less sense with small budgets and a whole load of planning and post campaign data to crunch. In fact, I think that the accountability of web marketing, while being the greatest tool for marketeers, have also been a contributor of "fear of the internet" by many traditional media planners, creative agencies and the like.
The bottom line i prescribe, would be to go back to traditional fundamentals and speak to marketeers in a language they would like to understand.
My comparison for Digital media and traditional media would be:
Firstly,
What are the objectives that the various brands would want to achieve, whether it be product awareness, branding or market positioning. whether it be Product sampling or activation, or simply to drive leads or sales.
1. Digital media is as important and reaches as many people as traditional media for a Brand's Advertising needs
The basic fundamental way a media planner should plan his media mix is based on Reach and Frequency. In cases like these and comparing channel to channel, I would believe marketeers would see that the online reach of individual channels whether they be Yahoo!, MSN, Google, Facebook etc have a reach that has surpassed most newspapers.
The difference in using online media as a branding and awareness tool is the myriad of ways it can be used creatively and strategically
2. Online marketing is as important traditional Event and Community marketing.
Online communities have much more potential in reaching a larger mass of people in a short period of time and probably would have a similar efficacy in word of mouth marketing than traditional media ever has. Mediums such as Facebook, can be used effectively to gather a group of brand loyalist with more frequency than ever. It is a fallacy however, for marketeers to use this medium exclusively as a key driver because the Reach of this is still relatively small. If you do a search on Coke (which still has one of the largest base of brand loyalists in the world) you would find around 20 groups with an average of 20 people per group at most)
That online media is stronger and more "in time" when it comes to "Tactical and Promotional" Marketing.
Google is the largest media company in the world because it is that medium that allows companies large and small to be present when a consumer is looking for a particular product or offer. The closest traditional media that compares to this probably would be the classifieds business (yellow pages, classified ads and even classified magazines) The only particular phenomenon is probably how large brand marketeers see Search as being the main medium in the online mix. A brand like Coke cannot be built on search alone.
If only online display advertising, with all its reach and brand impacting capabilities with rich media has to offer would be truly valued by Marketeers; then online marketing would see a larger focus and portion of the brand budgets of marketeers
If only Online Communities, social networking and viral programs with its reach, timeliness and strong word of mouth potential would be truly valued by Marketeers ; would online marketing see a larger focus on event and social marketing or even Ambient marketing budgets
And I think Search Marketing is probably the only successful online medium taking focus away from its traditional counterparts. Maybe even a little over hyped but a great tool nevertheless
PeteYoong
Managing Partner
Yellow Brick Road Group of companies