Will advertising agencies survive?

Download the study “The Future of Advertising. Pathways to Survival in Four Scenarios to Learn More About Strategic Scenarios and Fields of Action for Market Players in the Advertising Industry. The digital agency space has always been highly competitive, driven by a seemingly infinite demand for digital services. While the seismic shift caused by this global pandemic has posed new challenges for digital agencies, it has also provided interesting opportunities.

To survive in these new conditions, digital agencies are asked to reconsider their strategy and product offering to keep pace with changing customer demands. Still not sure what services your agency should offer in the future? Go straight to the source. Allowing your product offering to be influenced and developed by what your customers consider to be a priority makes business sense. In the results taken from the same survey, services such as website design and SEO are projected to increase in popularity, while email marketing will plummet.

It's important for agencies to be aware of what customers really need. At present, Asia's labor market is still relatively profitable (compared to other regions of the world) and has a high percentage of a younger workforce, so the agency model can still survive, thrive and evolve here. Agencies thrived when there was poor data, imprecise objectives, and limited shelf space. Only large companies could survive the inefficiencies of the funnel.

The products attracted the mid-sized customer. Without alternatives, consumers didn't do what they knew. In 2000, Y%26R, along with its whole-egg agencies, was acquired by WPP, a large London-based holding company with an even larger set of iconic marketing firms under its ownership. From competing in the care economy to dealing with the impending world without cookies, as well as increasingly stringent privacy and data usage regulations such as GDPR, PDPA Thailand and PDPA Singapore, today's agencies are facing pressure to change.

Mindshare Shanghai, Mumbai and Ho Chi Minh City join OMD Wellington in Warc's top 10 ranking of the most awarded media agencies. However, after Covid-19, Wix experts predict a change in perspective, as more companies prefer to work with agencies closer to their homes. The e-book advises agencies to consistently demonstrate their unique value to clients, either through the provision of a specialized service or the expertise and resources to educate clients. Lloyds Banking Group, Marks %26 Spencer and PepsiCo are among a growing number of brands that have incorporated some advertising or marketing services into their company.

Of all the emerging technology, codeless web development seems to have the biggest potential impact on the industry, as agencies find that they can free up valuable time and resources when they don't have to program everything from scratch. In the future, there will be no choice of automated campaigns or not, which means that an agency can no longer take credit for making the purchase, optimization or even planning in some scenarios. Desperate to stay ahead of the curve, companies are willing to embrace these new marketing strategies and agencies that show awareness of how to effectively leverage them will benefit. External forces are undoubtedly a contributing factor in undoing the traditional media agency model, but agencies have also increasingly been at the mercy of Google, Facebook and other major media owners.

With more competition than ever before and the rapid adoption of new tools and technologies, many digital agencies are lost in the background. .

Patti Goldenman
Patti Goldenman

General bacon lover. Hipster-friendly travel guru. Proud bacon ninja. Incurable zombie trailblazer. Professional bacon fanatic.

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