Today, agencies need to better define their value proposition, especially in the area of digital and social media, where the cost of getting human assistance and advice continues to drop. For example, I can easily find an SEO expert on the web and put a few groups in a bidding war for their services. Many (not all) the agencies I have worked with try to “catch every fly ball’ and be all things to all people. A PR firm suddenly becomes an expert in web site design or SEO. A traditional agency hires a few digital guys and suddenly claims they have experience. Personally, I think expertise requires a certain amount of time in the trenches and being a practitioner, but that’s probably something to be discussed at another time, on another blog post.
More and more companies are bringing their digital media buys in-house where they can buy the tools and hire the people they need to achieve their goals. They are orchestrating their own ad buys in house. This will probably lead to lower cost and make a more efficient operation.
They don’t need the middleman.
What does this mean for agencies, especially those who focus on media buys? That’s a good question. How do they work better with the tools, the creative teams and the client. Since ‘digital media buying’ is still in its early stages, there’s still time to figure out their future. One area where there is a big opportunity is collecting, analyzing and deciphering data. And taking that data and integrating with other customer / prospect data in your internal systems. But again, companies probably would prefer to do some of this on their own especially if they don’t want to share all their data with a third party.
After all, sometimes, “You don’t need a weatherman to know which way the wind blows.”
Originally posted @ Digital Marketing 2.0