AN END TO THE MAD MEN MODEL? YES, WE’RE MAD FOR IT.
Marc Pritchard at P&G has set the cats amongst the pigeons and, apart from blockchain, it’s all we’ve been talking about here at mad4digital. Rightly so… the era of ‘Mad Men’ is sorely in need of a shake-up. We love ‘mad’ hence our name but more seriously, what resonates is the wake-up call Pritchard’s article gives to agencies.
The issues around transparency, trust and performance are exasperated by the layers of complexity that are inherent in the current agency model and must stop, says Marc Pritchard and we at mad4 agree wholeheartedly. The marketing landscape has changed enormously; customers do not differentiate between online and offline anymore and why should they. The reality is that there is now such a vast number of touch points in the marketing process which makes it even more important that brands get closer to the customer. Ultimately that means reducing the number of middlemen involved. P&G, says Pritchard, is planning to reduce the number of agencies they work with from 6,000 to just 1,250.
“If entrepreneurs can buy digital media, why can’t the in-house brand team (…) do the same?”
The answer is that they can, but buying digital media is one thing, knowing how to optimise it to deliver results is another. This is where medium-sized agencies like mad4digital offer an advantage — our creative, media and analysis are fully integrated, which improves efficiency and ultimately saves on costs. We’re not ashamed to say that we’ve lost a few of pitches where the client has opted for the larger agency. This always seemed short-sighted in our view and with the new perspective Pritchard’s article alludes to, perhaps the tide is turning. Bigger doesn’t always mean better.
The challenge of moving teams in-house for brands like P&G is in simultaneously maintaining their ability to keep up with the fast-changing pace of the Internet of Things. An extended in-house team that includes the right mix of agencies, or agency in-plants are just two examples of actions brands can take to help bridge the gap. These aren’t new concepts but perhaps the time is ripe to review these options in a fresh way. Since inception mad4digital has been advocating marketing self-sufficiency, we believe in helping our clients understand and learn about digital marketing. We believe that by improving their knowledge our clients will be empowered to make the right decisions for their business. The role of the marketing agency in today’s connected, always-on ecosystem is to help clients find solutions to problems that they perhaps didn’t even know they had — this is the area where we can add value and rekindle brands’ trust.
Thinking long term, perhaps this sector is more ripe for blockchain than we think. We watch with keen interest as the bold and the brave start exploring the potential. Awareness is growing that mass adoption by brands of a suitable blockchain solution that improves transparency, builds trust and reduces complexity is a genuine, exciting possibility.
“The next generation Blockchain will enable companies like P&G to trust and collaborate with agencies in a more fluid fashion through smart contracts that have predefined values and rules governing the ROI. This will enable the brand to manage multiple agency relationships at all times whether it’s 6,000 or 1,200 really won’t matter. Moving forward we see it as our role to help ensure that brands don’t get caught off-guard”. Donavan Whyte, Commercial Director
Mad4digital is a tech marketing company. We are proud to be the marketing partner for one of Europe’s first full end-to-end blockchain delivery consulting firm. For more information email enquiries@mad4digital.com.
