The Ad Agency Business model is changing. Is your agency adequately equipped?

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The Ad Agency Business model is changing. US- independent ad agency Barton F. Graf To Close Doors At End Of Year. It seems like agencies that are adequately equipped will survive. Is your agency one of them?

What does Barton F. Graf have to do with my agency? The interesting thing about this article is that it quotes the agency founder Gerry Graf as saying it was a “perfect storm” of events that led to the decision, including major client spending shifts. “About a year-and-a-half ago, most of our relationships with clients were [agency-of-record assignments] and now, most have gone to project.”

Barton F Graf is not the first agency to suffer from this phenomenon and it certainly will not be the last. All the major advertising groups are struggling with this problem which is partly (if not wholly) why they are in the process of major restructures and simplifying their businesses.

Carlos Pezzani speaks at length about this in his excellent book “Usted Puede Sanar Su Agencia” (in Spanish) together with the other major challenges facing the modern creative agency.

The point being that only agencies that have adapted will survive. These agencies:

  • Have real-time visibility of their projects’ profitability,
  • See availability and utilisation of their resources at the touch of a button
  • Effectively manage scope creep and overwork.
  • They are agile and proactive in keeping their clients, employees happy and the business in good shape.

These businesses use systems like WorkBook & ConceptShare to manage their business.

Not convinced? Check out these testimonials from companies that made the change.

TMP Worldwide uses Deltek WorkBook to power their global advertising agency

Ogilvy & Mather WorkBook Case Story

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