The Importance of an “Agency of Record"

If getting the most of your agencies means harnessing the power of collaboration to bring about an environment where the big idea can come from anyone, it would seem that a brand has two clear choices. On the one hand, it can use one agency (perhaps calling it an agency of record) to lead all other agencies. On the other hand, the brand can choose to forgo the agency of record and instead manage its agency teams directly.

While either approach may lead to a collaborative environment (since the dawn of digital, agencies have come a long way toward working together) brands that opt to go without an agency of record run the risk of forfeiting the strength of a knowledgeable partner capable of thinking about the client's strategic interests.

The concept of an agency of record remains vitally important for major advertisers and marketers, agencies of record provide continuity, stability, and efficiencies that one-off, ad hoc, or project partners simply can't meet.

The notion of an agency of record that drives the strategy and the brand is more vital now than ever. But traditional agency revenue models where money is made on production and media commission is waning. And that means that someone ultimately must take responsibility for the brand's strategic vision.

A brand also needs people on the inside who understand what marketing is and how it works, and who live, eat, and sleep your brand. These are the nuts-and-bolts people who will move your business forward. They're the CMOs of tomorrow, but today they're trying to prove themselves and (hopefully) trying to learn as much as they can about marketing.

Making A Brand Relevant In Social Media

There are two components to advertising in the broader sense. One is the content that you manufacture, and the second is the channel and method you use to distribute that content. My sense is that the issue here is one of distribution and manufacture. So from a manufacturing point of view, the messaging that sums up the message of brands and even creates them is in a state of very, very rapid evolution. It's in a state of evolution in a number of dimensions -- in terms of the duration of messages, the formats of messages, and everything that goes with that. The world is not doing badly in terms of involving that manufacture. So that's a good thing. And the good thing for the agency business and the creative community, if you like, is that there has never been a bigger demand for more granular messaging to go in different formats.

The purpose of brand communication -- pretty much above everything else -- is to create social relevance for brands. What social relevance means is having a substantial cohort of the population, or certainly a big enough cohort of the population that justifies the cost of whatever it is you were planning to do in the first place -- that knows what the brand is, like it, feel it's relevant, and that is suitably exposed to it. That's what social relevance is. You still need to do that. So the question is: Has the bar for social relevance gone up? Yes, it has, and so the way you do that is to create a platform of some description, and you build social relevance around that platform.

Where can digital fill in the holes that traditional often leaves behind or completely ignores?
Digital fills holes in a couple of ways. The first thing it does is it helps by replacing the reach that's lost by the somewhat diminished use of other channels. But what digital really does is break the relationship between cost and duration. One of the reasons why the structure of the market was positioned the way it was in the old world is because it was limited either by the number of pages the magazine publisher could use to print and distribute and carry around on trucks, or the amount of spectrum that was owned by a broadcaster, and so forth. So the industry was capped before. When you think about advertising, think about it in two ways. Part of it simply pushes visibility into the market, and another part is much more directional. And what that direction is doing is taking people from a fairly superficial form of contact into the opportunity to engage much more deeply with that content.

How Brands Become Part of People's Lives'

All brands can gain consumer respect. But how do you identify which elements you need to put in place to become a part of the brandthread of people’s lives’? A brand doesn't just get respect, it depends on three criteria:

Performance
Does the brand offer better quality in comparison with its competitors?
Does the brand strive constantly for innovation, improvement and flawless service?
Do you have the feeling you're getting value for money?

Trust
How trustworthy is the brand?
Can you always count on the brand?
Does the brand always meet your expectations?

Reputation
What is the brand's reputation like? Is it a leader in its category?
Is the brand honest and does it own up to any mistakes?
Does the brand operate as a “good citizen” and does it work for a better world?

For brands to become part of peoples’ lives' they need to use these life pillars (Language, Music, Fashion, Sports, Food, Family, Activities) to diffuse their message. Brands must associate with these pillars, each of which can influence one another:

Creating Interest
Are there any brand myths?
Does it have a rich tradition and history?
Does the brand make you dream?
Does the brand have a recognizable logo, symbol or icon?
How much does the brand play on the senses?

Thread of People’s Lives'
How close to its consumers can the brand get?
Is there two-way communication between the brand and the consumer?
Does the brand exhibit interest in its consumers and their individual needs?