©IDG Communications, Inc. Photo contributed by Matthew Mikaelian.
Despite rapid advances in digital technology and its integration with the publishing industry, the stalwart agency model has done very little to keep pace with the evolution. For the most part, the typical agency business model still resembles a walled society in which the leadership continues to steadfastly defend its desire for omnipotent control over all facets of client services. In the days of push-messaging, this ability to control the message was paramount to client success and winning new business.
Those days are fading fast. The effectiveness and efficiency of this model are slipping away amid a convergence of forces from both sides of the table. Consumers are demanding greater transparency in in their relationships with brands, while brand marketers face a critical mandate to evolve their strategies to stay ahead of new consumption models and consumer demands. The drive toward a two-way conversation has left most closed-loop agencies scrambling to figure out where they fit in.