5 Reasons Why (The Best) Ad Agencies Will Survive (And Thrive)

By now, many of you have seen this video, produced by Saatchi and Saatchi:

Many folks have called this video a wake-up call, a sign of the future, and a reflection of what’s to come in the advertising world. With the rise of social collaboration, crowdsourced ad campaigns, and the rise of user generated content, it may seem that ad agencies aren’t necessary.

If the goal of communication strategy these days is to create a group of brand ambassadors who market your product for you, where do advertising agencies fit in? As more and more users continue to adopt social tools where unfiltered conversations about brands are the norm, shouldn’t every brand solely focus on customer service, reputation management, and building a great product that will spur word of mouth?

At first glance, based on this thinking, it appears that PR agencies are going to dominate the world of communications. Once you scratch the surface of social media 101 type posts, you’ll realize that while customers do want interaction, engagement, and fantastic customer service they still want brands to help them define who they are.

Here Are 5 Reasons That (The Best) Ad Agencies Are Here To Stay:

1) Media Consumption is Growing Exponentially:

A recent survey of 2,000 children 8-18, by the Kaiser foundation found that kids consumed more media than ever, and managed to pack in a whopping 8.5 hours of media consumption a day. In 2004, the average was 6.5.

People are hungry for media with a storyline that translates over all entry points. Ad agencies that tell a great story and consistently deliver that “wow factor” , will see consumers that are hungry to not only engage with their projects, but share them as well.

2) (The Best) Ad Agencies Are Concerned With Why, and Not Only How, People Share

A great ad agency recognizes that the term “viral video” is at the very least a misnomer. Unlike a virus, a video doesn’t sneak its way into your computer and replicate itself, forcing all of your friends to watch. This terms implies that the “how” people share t is magical and important, rather than the content of the video itself, or understanding “why” people share.

via Mike Arauz

This line of thinking extends way beyond a video. Why would people “fan” your brand on Facebook? Because it says something about their personality. Every online action is part of the creation of a complex online identity, and (the best) ad agencies are consistently better at understanding online identity formation than their competition.

3) As the Novelty of Social Media Wears Off, People Will Want Beautiful, Creative, and Entertaining Brand Experiences

No one is impressed anymore that your “insert company name here” has a Facebook Fan Page, it is simply good business practice. What’s the next step? Offering value to your customers in a creative and targeted way . In other words, build something that makes your customers online experience memorable, inspirational, and informative. Build Something with social media.

Check out the CoolHunting.com/Cadillac Co branded Ipad app from BBH labs:

If you have an Ipad, chances are you’re into style and design. This is a fantastic way of making the newest Cadillac CTS coupe appeal to design obsessed IPad early adopters.

4) Ad Agencies Can Think of Creative Ways to Utilize User Generated Content for Brands

Generally, ad agencies pride themselves on creativity. User generated content is extremely valuable to brands, but it becomes more so when placed within an appealing package that accurately reflects the brand.

How do iconic and luxury brands retain brand equity when they have little control over the design of a specific channel? They build their own.

Check out Burberry’s “Art of the Trench“. This is a fantastic way of engaging customers without losing any brand equity:

5) Ad Agencies Understand Cool

This is what we share: Celebrities. Music. Sports. Design. Cooking Tips. Irreverent stories that make us chuckle during the work day. Media that inspires awe.

The best advertising changes behavior. In new media, we want to inspire folks to share content, to talk about your brand, build engagement, and ultimately, drive sales.

Social media purists may argue that everyone has a voice, everyone is important, and anyone can become an “influencer”, overnight.While this is true, creating content that inspires awe, that makes consumers feel “cool” both when they experience and share that content — This is where the opportunity lies for ad agencies.

That being said, there are many aspects of the advertising world that aren’t working: Selling impressions, lauding a 3 to 5% conversion rate as industry standard, business practices based on an antiquated TV rating system… The list goes on, but that is another post for another day, and lots, who are smarter than I, have already written on that very topic.

Fundamentally, ad agencies have an advantage over other communication agencies — They are better at building brand experiences and making users feel special. Here are some agencies that are already taking advantage:

1) Odopod

4) Plan B

7) Humungo

8 ) Mullen

9) Undercurrent

10) Carrot Creative

11) R/GA

12) Deep Focus