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HOME • MANAGE SUBSCRIPTIONS • MEDIA KIT
2006 Agency Of The Year: Nobody
by Max Kalehoff, Friday, January 12, 2007, 11:01 AM

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You, you and you, again! It seems that's all we hear now, thanks in part to Time's naming of "you" as person of the year. And praise to you recently extended beyond mainstream and into the marketing-agency world, exemplified by Ad Age's naming of you as agency of the year. That's where I draw the line.

Let's get things straight. You, the individual, are more important to marketers now because you now have a digital megaphone in which to expose, codify and amplify what you've always done: express yourself, including your experiences with brands. Your expressions now are positioning, promoting and influencing brands in ways that often are more creative, compelling, credible and powerful than those of the professional agencies that brands still hire today. But should you, the individual, be crowned agency of the year? No.

Frankly, I'm not sure if anyone deserves to be agency of the year, because nobody really knows what's going on in this turbulent phase of marketing and advertising. At best, an agency can be humble, adaptive, speedy and experimental; those factors represent today's ultimate competitive advantage. Anyone who claims mastery and full confidence is either misguided or disingenuous. And that is a major reason why "nobody" should be named agency of the year.

Nobody? Sure, several shops--large and small--have achieved great things in 2006. That is especially true for an emerging genre of agencies, which I sometimes describe as alternatives and amateur outsiders--like the folks behind Eepybird and Lonelygirl. Wrongly referred to as "consumers," these new content creators, formerly hindered by media-pipeline scarcity, now are empowered by democratized publishing technologies. They are a disruptive force to be reckoned with. But in the end, I'm still waiting for an agency to truly lead and blow the industry away. Some are getting closer, but not close enough.

What should an agency of the year look like? In my eyes--in this era of the rising "you"--an agency must embody ten critical attributes and capabilities:

1. Foremost, agency staffers must be passionate about acting in the interest of consumers as much as they are in the interest of paying clients. You must do good things in the world and reciprocate with others. Tolerance for anything else is waning.

2. The agency must drop tactical communications from its core positioning and instead embody the value of creating great experiences, with tactics following.

3. The agency must embrace a world where paid media placements lose overall traction, and instead master the new currency of word-of-mouth, where reputation and propensity to recommend are earned. These latter factors increasingly determine your ability to communicate and be noticed; they are the new media pipeline.

4. The firm must strive for everlasting client partnerships, not because of insatiable desire for ongoing revenues, but because it understands that programs which achieve deep, ongoing customer experiences and loyalty are incompatible with a start-peak-end model. It's all about a transition from campaign to platform mentality.

5. An agency of the year should be one that first evaluates the client's internal processes and culture, to ensure those dimensions optimize opportunities for greatness, not hamper potential.

6. The agency must gain expertise in areas of innovation, product and customer service--versus solely on marketing communications. When the client fails to deliver those fundamentals, the agency must recognize that any advertising or marketing communications will only threaten or erode the client's brand, or simply waste money. Yes, sometimes the client's baby is ugly, and it needs help beyond advertising or marketing communications.

7. The firm will value institutional customer-listening as a core competency far more than institutional speaking.

8. Enterprise creativity will stem not from a creative department, but collectively from a group of staffers with diverse disciplines, each with the ability to think creatively, abstractly and from different vantage points. These passionate staffers will often have backgrounds in digital, science and algorithms, multimedia, social sciences, history, arts, culture and more.

9. The agency may get out of the advertising business, for the most part, and perhaps outsource the more tactical aspects.

10. The agency increasingly will recognize and organize around you, the individual.

To be sure, there were some great marketing and advertising agencies in 2006 that did outstanding work and should be celebrated. Many existing and new agencies also are moving toward the unconventional model I describe. But I still pick nobody as this year's agency of the year, because nobody truly embodied my ten criteria in totality. Now, forget what I think. Most important, what do you think?

1 person recommends this article. 

17 comments on "2006 Agency Of The Year: Nobody"

  1. Max Kalehoff from Nielsen BuzzMetrics
    commented on: January 19, 2007 at 8:37 AM
    Ross, With regard to #9, I mean that much of the greatest value that ad agencies can apply is perhaps not advertising. The ones that realize and identify with the core values they're delivering will place less emphasis on the tactical advertising part. Advertising is downstream when so many other parts are broken. And, yes, it might be that some agencies will represent the consumers more than the marketers. I think we'll see this more as more hybrid media-agencies evolove. Think of some of the creative programs that publishers create directly for or with marketers, with no agency involved.

  2. Mark Naples from WIT Strategy
    commented on: January 18, 2007 at 4:08 PM
    I thought this was a fantastic column by Max, and the responses have also been very keen. Lists are largely specious, but in a milieu as dynamic as ours is today, they're all but a waste of time, IMHO. As Max wrote, nobody knows what's happening now and if they are, the people who keep track of these lists won;t know because frankly, that company wouldn't LET them know. If you owned said comapny, would you?

  3. Jim Byford from Free Range Ltd
    commented on: January 16, 2007 at 6:00 PM
    Top post Max. Whilst I was initially pleased to see Time 'get it' I couldn't help but think that really they don't. Likewise the AdAge interpretation of events. It's lip-service to the fact that Murdoch has finally taken the web seriously, by, as us Brits like to say, 'splashing some cash' in the case of MySpace. As for Google/YouTube they're on a different agenda altogether. What it's really about surely is two-way dialogue being the real message, which hopefully will lead to better insight, more responsiveness, inventiveness/innovation (from agencies and those they serve) and all the other things you correctly observe. Here's to 'us' or 'we' in 2007.

  4. Ross Fadner from MediaPost
    commented on: January 15, 2007 at 10:13 AM
    I agree that the whole "you" thing is a giant cop out and waste of everyone's energy. (I pity the journalists who had to write those pieces). But, what, specifically, do you mean by #9, Max? In this light would you have the agency business turn into the consulting business--but representing consumers to marketers instead of visa versa?

  5. katie gallagher from Planb
    commented on: January 12, 2007 at 2:38 PM
    Thanks Max. Nicely put. As a consultant working in the micro-agency model, we live many of the tenets you offer. Our role often becomes filling the gaps between the client's internal departments and agencies. Small by design, our size makes enterprise creativity a necessity. Meshing systems, culture and institutional listening with marketing communications are default approaches. Still while this ground is familiar your list is the most comprehensive and succinct take on the landscape I've seen.

  6. Kelly M. Williams from search marketing
    commented on: January 12, 2007 at 1:34 PM
    I'd like to second #5. Marketers are especially good at telling you what they want and don't want, but are not as good at revealing why the previous agency partner relationship failed and omit that their own organizational dynamics kept them from implementing and executing the great ideas they bought. Great agencies peel the “internal process and cultural onion� on the front end in order to be successful with their clients long term. Touche..

    BTW - add me to the "Friends of Max" list. I first heard you speak at a Search Summit in NYC this past fall where you turned me on to the CGM movement, and your quoting of Jonah Bloom – “Consumers trust fellow buyers over marketers� - has stayed with me ever since. No doubt, this is a fun space to play in.

  7. Kate Trgovac from Reinvent Commnunications
    commented on: January 12, 2007 at 1:31 PM
    YES! Thank you! Finally! I said the same thing myself a few days ago (though really more on the ranting side and less on the "here's what agency of the year should be" side.). Well articulated, Max.

    http://www.mynameiskate.ca/2007/01/yawn_ad_age_pic.html

  8. Djuan Smith from Consultant
    commented on: January 12, 2007 at 12:53 PM
    I agree with your assessment 100% having worked at a top winning agency. Unfortunately none of your top 10 suggestions will be embraced because it goes against the core of the agency world of "pay for play". Everybody is chasing large big money accounts to get large corner offices (with large pay checks). The inclination to always go back to the playbook of yesterday's success is ingrained in the minds of the staff. How can agencies respect the power of consumers when they have always had a condescending look upon the consumer thinking they are just mere lemmings that they can manipulate with yesterday's ideas remixed with the latest industry buzz words. The winners will actually be those who have the passion to roll their sleeves up and actually do work (one the streets they say get on the grind) and experience the "space" and immerse themselves in the community that they are trying to target. Then they can come away with malleable solutions. Good luck on you crusade, I believe a true winner can be had but who is willing to face the reality that consumers are now controlling brands.

    djuan@thegoodliferadio.com

  9. Harry Hallman from Hallman and Associates
    commented on: January 12, 2007 at 12:39 PM
    Please! This concept that the "citizen marketing" is in charge is bull. This is a craze that will pass. Should we care about the consumer- absolutely. Should we use consumer input for marketing- Yes. Should be work on better customer service- no doubt. Are we really going to turn over our advertising and marketing to people with no experience- No way. Else why not just hire kids out of college to run the agencies. Oh I forgot! We did that in the dot com era and look what that got us.

    Both Time and Ad Age coped out and took the easy road. The popular road. Use to be that Time actually choose villains or heroes. At least we could hate them or love them. Now the hero or villain is everyone. Kind of waters down the concepts. It is akin to the concept of giving no grades in school. That way poor Johnny won’t feel bad when he fails.

    Sorry but this Ad Age thing was the last straw. Whatever happened to the “customer service� phase we went through in the 80’s. Every chairman of the board was talking about how important the consumers were. Take a look around and see if customer service got any better. The answer is no and it is even worse. If we really care about the consumer then give better service, make better products, find ways to reduce costs.

    Your list is right on the money.

  10. Sean Carton from idfive
    commented on: January 12, 2007 at 12:38 PM
    A-freakin'-men, Max! It's appalling to me that in my dealings with most big clients (and big agencies), most marketers out there still don't get it. While "hot" agencies (and "hip" brands) are quick to jump on the various new-technology bandwagons that go whizzing by with increasing frequency, most don't seem to do so in terms of a larger strategic framework and customer-focused approach. All you have to do is look back a month or so to the frothing hype over Second LIfe to see this kind of thinking in action. Additionally it also seems that most agencies are still struggling to reconcile the increasing importance (and effectiveness!) of direct techniques (CPL, CPC, and search) with their overwhelming desires to be seen as chronically-underappreciated creative gurus who suffer for their art. Add to this whole mix a chronic and cynical misunderstanding of consumers, what they do, what they want, what kind of media they're really spending time with and you've got an industry that's still very much in the dark ages in terms of dealing with the tectonic shift we're currently in the midst of. As more and more clients get savvy to the realities of the ad world we're going to end up seeing a lot of business move away from the big dinosaur agencies and to smaller firms who know how to be fast, flexible, creative, in-touch with customers, and (this ain't a small issue) cost-effective.

    Thanks for the reality check! And no, I'm not bitter. :)

  11. Gerald Brewer from Voltage Factory Inc.
    commented on: January 12, 2007 at 12:28 PM
    Amen. Excellent points throughout. For many years agencies have stood by as many of their clients and their respective industries went through traumatic, tectonic shifts in the core business models. Now it's happening to agencies. The only competency I would add would be: the ability (and guts!) for agencies to offer measurabily on marketing expenditures. Gerry Brewer

  12. Shannon Nelson from Makeup Minute
    commented on: January 12, 2007 at 12:03 PM
    Max, this is a good post.

    I didn't mind when Time announced the public as person of the year, but then when others starting following suit, everyone just appeared to be following a trend and copycatting. It got boring really quick and I think takes away from how the public really influences how the media and brands operate.

    ~Shannon Pierce Mattie Public Relations Blogger

  13. Kathi Webber from Cox Radio
    commented on: January 12, 2007 at 11:57 AM
    Hi Max! Working with Agencies on the other end, it is unreal to see how few agencies do what should be done. Rarely if ever do you find an agency who is more interested in results than ratings and who is less interested in addy's and more interested in long term client relationships. Working in the radio industry it is amazing how so many agencies are not future brand thinkers and who only advise on now revenue. I recently had a dealership avail from an agency requesting only to buy adults 45-54 for their client as this is the average age of their buyers. I met with the buyer in person to explain to them how important the younger Demos will be to the future of their brand. Why is it that when an agency plans they are not preparing for future business? It seems that would be a great secondary buy for a secondary demo. Why do Agencies not buy media the way it is supposed to be bought? Rarely if ever do you get a buy from an agency with a 3.0 frequency...and that number is more important than GRPs and CPP and Reach any day! It is almost like they do the same thing over and over for different clients (same demos, same schedules, similar creative) and expect it to work for all of their clients. When Agencies begin to really be a Marketing Consultant and care about what they are buying and if it is going to get results for their clients, then we can have an Agency of the Year! The winner should have the highest % of revenue growth over the previous year for their clients, not the funniest spots.

  14. anthony ingram from RCI
    commented on: January 12, 2007 at 11:46 AM
    (#2) Form must follow function. It does not matter how cutesy it is if it is still not effective and does not engage the potential consumer. (www.TheBoxStopsHere.com)

  15. Brad Curtis from Science + Fiction
    commented on: January 12, 2007 at 11:36 AM
    As the High-Exhalted, Executive Director of "Me"... Mr. Agency of the Year, I would like a raise please...Add in a nice car and some bling-bling for the wife. Everyone who reads this should send $1 and this chain letter onto 10 of your friends...Helping to "Monetize Me."

  16. nettie hartsock from Hartsock Communications
    commented on: January 12, 2007 at 11:29 AM
    Max, THis is a great list. In particular, number 2 in both PR and marketing is key for this New Year. Fantastic, inspiring list for all of us to aim toward!

    Nettie Hartsock Hartsock Communications

  17. Michael Miraflor from Deep Focus
    commented on: January 12, 2007 at 11:23 AM
    does this mean i have to take those lines off my resume? i so wanted to be able to tell my next employer that i was ad agency of the year 2006.

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MAX KALEHOFF
  • Max Kalehoff is vice president of marketing for Clickable, a search-marketing solution for small and mid-size businesses. He also writes AttentionMax.com


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