The established shape and role of the marketing communications agency is in the process of changing – massively, decisively and for ever. What are these changes and what can the traditional ad agency do to survive...?

Digital marketing has been widely described as either marketing via an evolving collection of electronic, interactive personal media channels and/or as a methodology to bring marketing communications to the users of those channels that taps into the way those channels are used. In truth, the use of these electronic channels is now so ubiquitous that they are no longer ‘new’ or niche but are now very much part of the everyday lives of all audiences.

The internet is no longer in competition with radio or TV, it is something that the audiences look at as well - and often at the same time. Indeed as what was traditionally called radio or television content is increasingly delivered over the internet via computers, games consoles etc and where traditional web content, games etc are being delivered and consumed via the mobile phone, there is now little or no distinction to be made in the various channels in terms of who can see what, where and when.

What has changed with digital however is the ‘how’. Digital channels are essentially always on, completely controllable, interactive and increasingly portable meaning that traditional roles of advertising – e.g. to interrupt a passive viewing experience with regular, attractive, persuasive messaging – is no longer effective as the prime method of effecting change within an audience. Since the creation and distribution of those messages – strategically, creatively and tactically – is the currency and purpose of the advertising or marketing communications agency, then it is clear that the market’s need for those traditional services is in rapid and severe decline.

Digital media technologies have changed communications behaviour for ever in two ways:

Firstly, the audience goes there deliberately, to action something or to complete a task of some kind. There is little or no passive exposure and even where advertising might work it needs to be very carefully aligned with the subject and task that the user has chosen to undertake. Behavioural targeting is now much more important than simple demographics.

Secondly, the digital channels now provide a return path for the audience to interact with the content – to challenge it, make comment, argue, support, champion etc. This means the total democratisation of the audience to form opinions, preferences and choices and to form groups of like-minded individuals to publish those opinions, preferences and choices. It is the weight of these opinions and the relationships developed between brands and their markets – through ongoing dialogue, participation, trust and advocacy – that are increasingly becoming the drivers of behavioural change amongst consumers (e.g. Travel Republic, Obama’s 2009 election, the Xmas No.1) because the audience’s trust of peer-centred group experience is over 400% higher than that of paid-for marketing communications. (Source, Nielsen)

This is a revolution in the history of the human race. No more, no less and, as a result, everything will change.

The marketing communications industry will change (is changing already) too. The days of making an ad to communicate a brand-related, offer-specific message to a mass audience across a small number of channels have gone. In some cases, particularly in Northern Ireland, the market hasn’t quite worked it out yet, but it will go. But….. everything that the ad agency does will stay relevant, albeit changed to reflect a new essential purpose.

Our clients come to us to effect a change on their behalf. What we now know is that the movement for change comes from the market itself – from early adopters who develop brand relationships to become advocates and champions – through to the profitable mass market who have decided to join the tribe of like-minded individuals because they trust it. These relationships can only develop through ongoing dialogue and conversations (see The Clue Train Manifesto) and must develop over time through awareness, interest, preference, adoption, trust and finally advocacy.

The marketing agency’s prime purpose therefore must be to create, facilitate and manage these conversations and the resultant relationships on behalf of its clients. This is a very different central ethos to what we do now but it is the truth and anything else will ultimately fail. The good news however is that many of the constituent parts will remain as before, i.e.

• There still needs to be a central, strategic marketing plan but now, instead of concentrating on sales-based transactions, the strategy should concentrate wholly on the development of relationships between the client/brand and its markets
• In the absence of an existing solution, the agency needs to ensure that the client/brand has the IT infrastructure (e.g. an interlinked website and CRM system) in place to be able to facilitate the marketing conversations, to manage the development of the relationships and to track and measure the markets’ interactions and preferences.
• When developing the brand identity the agency needs to be aware that the entire purpose of this exercise is that the brand should be able to stimulate conversation across all aspects of its existence, e.g. its:

o Icons (logos, colours, words, signage, print etc)
o Rituals (how it operates including the customer experience)
o Influencer endorsements
o Reputation
o The customers’ stories

• When incepting the conversation or when adding a specific topic to be discussed (e.g. a new product offer, price promotion etc) advertising can still be used to alert the audience and the best media channels should still be used, e.g. television radio and press. These haven’t changed but the rational behind the creativity is always to alert the audience and to start the conversation and to drive the audience to those interactive channels where the conversation can take place, e.g. the website, social media etc.

So, in conclusion, the industry has changed for ever. Digital is no longer a separate niche component; it is the foundation of everything. However, with this simple recognition and a realignment of its direction and priorities, a suitably equipped agency can survive and prosper. Indeed I believe that we are still (just) in an early stage of the market here in Belfast, Northern Ireland where there is still the opportunity for a single agency to really take the lead and stand out.