Webinar The Interactive Agency Landscape Jim Nail, Principal Analyst June 28, 2012. Call in at 10:55 a.m. Eastern time

What is an interactive agency?

What is “digital”?

What is “digital”? (cont.)

Digital or traditional?

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Agenda What is an interactive agency? The future is mediator, not agent. The four types of mediators

Agencies’ roles have changed

Agencies’ roles have changed (cont.) Milestone 1844

Agencies’ roles have changed (cont.) Milestone 1930 to 1940s

Agencies’ roles have changed (cont.) Milestone 1960s

Agencies’ roles have changed (cont.) Milestone 1981

Targeting Media consumption Image Response Unique selling proposition

What is an interactive agency?

Relationship Experience Connection Engaging Conversation

Agencies’ roles have changed

Relationship Experience Connection Engaging Conversation

Agenda What is an interactive agency? The future is mediator, not agent. The four types of mediators

Value exchange mediator A firm that blends strategy, creative, technology, media, and data offerings to connect brands and their audiences in ways that balance satisfying customer needs against achieving business goals

Agenda What is an interactive agency? The future is mediator, not agent. The four types of mediators

Value exchange mediators address four core marketing goals Add value. Build loyalty. Build brand. Drive leads/sales.

Value exchange mediators address four core marketing goals (cont.) Business transformers Identify adjacent innovation. Add value. Build loyalty. Build brand. Drive leads/sales.

Value exchange mediators address four core marketing goals (cont.) Business transformers Identify adjacent innovation. Add value. Build loyalty. Build brand. Experiential branders Embed emotion into experiences. Drive leads/sales.

Value exchange mediators address four core marketing goals (cont.) Business transformers Identify adjacent innovation. Add value. Build loyalty. Build brand. Experiential branders Embed emotion into experiences. Drive leads/sales. Lead in-market consumers through discover/explore. Demand generators

Value exchange mediators address four core marketing goals (cont.) Business transformers Identify adjacent innovation. Add value. Audience engagers Experiential branders Conduct always-on conversations. Build loyalty. Build brand. Embed emotion into experiences. Drive leads/sales. Lead in-market consumers through discover/explore. Demand generators

Business transformers MEDIATORS THAT DEFINE POTENTIAL OR REDEFINE THE VALUE PROPOSITION Core skills Consumer insight Business strategy New product/service development Barriers Harmonize “soft” human empathy skills with “hard” technology skills.

Business transformers (cont.) MEDIATORS THAT DEFINE POTENTIAL OR REDEFINE THE VALUE PROPOSITION “We aspire not to even be a communications agency. We make things that make the product more useful and valuable.” Core skills Consumer insight Business strategy New product/service development Loren Grossman Chief Strategy Officer, RAPP Barriers Harmonize “soft” human empathy skills with “hard” technology skills.

Experiential branders BALANCE DIGITAL INTERACTIONS WITH MORE EMOTIONAL RESONANCE Core skills Cross-channel experience Multichannel messaging Communications strategy Barriers Egalitarian culture Ideas emerge from any area.

Experiential branders (cont.) BALANCE DIGITAL INTERACTIONS WITH MORE EMOTIONAL RESONANCE Core skills Cross-channel experience Multichannel messaging Communications strategy “With digital, you can change behavior before you change attitudes.” Colin Kinsella CEO, Digitas Barriers Egalitarian culture Ideas emerge from any area.

Demand generators Core skills Barriers Data Optimization Analytics MEET CONSUMERS WHERE THEY ARE; GUIDE THEM THROUGH LIFE CYCLE Core skills Data Optimization Analytics Barriers Inject data-informed human judgment into algorithmic processes.

Demand generators (cont.) MEET CONSUMERS WHERE THEY ARE; GUIDE THEM THROUGH LIFE CYCLE Core skills Data Optimization Analytics “We target audiences that are ready to act and find inventive ways to turn intention into action.” Robert J. Murray Global Chief Executive Officer, iProspect Barriers Inject data-informed human judgment into algorithmic processes.

Audience engagers Core skills Barriers Customer data CONVERSE WITH THE ALWAYS ADDRESSABLE CUSTOMER Core skills Customer data Content: strategy, creation, and integration Barriers Break transaction-centric mindset to support ongoing conversations.

Audience engagers (cont.) CONVERSE WITH THE ALWAYS ADDRESSABLE CUSTOMER “Our goal is to engage with the whole customer, not just as buyers and users of brands but as creators, participants, critics, champions.” Core skills Customer data Content: strategy, creation, and integration Stewart Pearson Chief Client Officer, Wunderman Barriers Break transaction-centric mindset to support ongoing conversations.

Time to evolve beyond interactive agencies Define assignments by business goal, not media/channels. Create narrower, more focused RFI/RFP processes. Probe culture and processes, not just lists of technical skills. Evaluate how they solve business problems.

Q&A

Jim Nail jnail@forrester.com blog.forrester.com/jim_nail Twitter: @jim_nail