How agencies should manage the move to digital

Consumers can now buy the products and services they need, when and where they want, thanks to convenient electronic channels such as the Web and the mobile Internet. This change in consumer behaviour in turn demands that agencies rethink the way that they do business.

Marketers are looking to their agencies to facilitate their move into the digital world. But many agencies are unable to help their clients make the most of online marketing channels because they simply don't have the experience and the know-how. These agencies are usually held back by an inability to manage campaigns and data in real-time and by a lack of technical resources.

Pressure to reinvent the agency

Traditional agencies are coming under pressure to reinvent themselves to meet their clients' requirements. Many of these agencies know that mass marketing campaigns are no longer as effective as they once were and are trying to develop one-to-one marketing campaigns that speak to individual consumers.

But far too often, the solutions they offer are poorly thought-out: "Let's create something on Facebook" or "How about a clip on YouTube?" To deliver real value, agencies have to become experts on digital channels and the technology used to support marketing in these channels.

A wonderful side effect of digital marketing is data. Huge amounts of data are generated in every online campaign. This data allows marketers and agencies to directly measure success, failure and ROI against a broad range of metrics.

This very data has also become a challenge to both marketers and agencies.

They're constantly reaching for the answers to a range of business and technical questions. What should be measured? Which numbers should be taken seriously? Which should be ignored? How do we integrate data from various sources to create a holistic view of campaigns and brand strategies?

Agencies are usually working with a number of technology suppliers on multiple campaigns across a number of brands and spanning a range of digital channels. It's hardly surprising that this data can quickly become unmanageable.

Yet, agencies must figure out how to integrate all of this data so that they can deliver meaningful reports to marketers and optimise campaigns if they are to be successful. Hiring or outsourcing, to data integration and analysis specialists is the only way agencies can create effective media measurement systems that allow them to work with data in a meaningful way.

New efficiencies

If they are to make effective use of all of this data, agencies must also achieve new workflow efficiencies as well as understand and implement the new processes demanded by digital marketing. This is not an easy task in an environment where agencies are short-staffed and where the market isn't able to supply enough people with digital experience.

Thankfully, there are a few ideal solutions. One idea is to improve workflow efficiencies by dealing with as few technology suppliers as possible.

Agencies should hire talented staff that have the experience and skills to handle marketing technology. They should pay them well, and develop a succession plan since they will inevitably move on at some stage.
Another option is to consider outsourcing technical campaign management, deployment and reporting to a third party.

Making the mindshift

All agencies are in business to optimise the effectiveness of their clients' advertising strategy. Today, that means they operate in an environment where an immediate response is demanded and where technology is an operational requirement. Those that start to view technology as a strategic tool rather than a necessary operational evil will develop a distinctive competitive advantage and have a significant effect on their clients' brands.

For marketers, the challenge is to seek out an agency that is genuinely capable of technically delivering results that allow them to take advantage of this digital landscape.

The question they should be asking is whether their agencies have empowered themselves with the skills and technology to deliver digital.