Lights. Camera. Website!
In my prior posts I discussed how the Post PC world is a challenge to the core model of how any creative agency works after that I discussed how new enterprise web management platforms give rise to low-cost competition to agencies seeking to expand into the mobile space. In this concluding piece on this topic, I’ll suggest that the next 5 years are going to be a transitional time for the “traditional” digital media agency, and that the business opportunities for agencies are going to undergo a major transformation in both the kinds of work they do and the way they execute on the work.
One of the classic discussions anyone who works for a digital media agency gets from friends and family is how to handle the question, “So what do you do for a living?”
At first, you say, “I work at a company that builds web sites for big companies.” and the response you get is, “Oh, you work with computers. My Google is running slow, can you defragment my keyboard’s USB for me?” You quickly learn to never utter the words “web site” in the presence of a civillian again.
So after a while you take another tack and the next time you respond with something a little more comprehensive and accurate.
“What do you do?”
“I work with companies to help them understand and capitalize on the native benefits of digitization of business processes, defining and deploying market-facing interactive interfaces optimized to the devices and services consumers are currently using and will use in the future.”
That gets a blank stare, a forced smile and then they pretend to see someone they know, wander off, and you find yourself alone at the party again. Eventually, you learn that the question is best answered with a dialogue.
Them: “So, what do you do for a living?”
Me: “I help companies figure out what they should do online.”
Them: “You make web sites?”
Me: “Often, a web site is created as a result of what I do. Not always.”
“Let me ask you a question. Imagine you run a company with 4 million customers and you send those customers a bill in the mail every month.
Each bill you send costs your company $15.00 because you need to create the bill, print it, stuff it into envelopes and mail it out, and then you pay to collect incoming mail, open the envelopes, deposit the checks and so on.
But if your customers use paperless billing and online bill payment, it costs you only $4.00 a month in various fixed costs. But only 2% of your customers use the paperless billing your company offers via its web site. What do you need to do to get that number up to 50% of customers in the next two years?”
Them: “Ummm….I don’t know.”
Me: “I do. And figuring out stuff like that is what they pay me to do. ”
That usually works to explain what I do – and more importantly, it defines the real role of the digital media agency. The best digital media agencies – and there are lots of them – have the ability to look at the whole realm of interactive digital media capabilities and business practices and then develop not only a digital solution that suits the client, but to define the most important thing: what to do first. And second. And third.
People at a digital media agency also need to keep an eye on what’s happening out there in innovation land, think about their clients and prospects, determine if something happening online is an opportunity, a threat or irrelevant and make a compelling case to support the assessment. I can’t even begin to count the number of online services I’ve signed up for over the years and the number of technologies I’ve dragged home in a bag so I could speak with authority and first-hand experience on how they work, why they matter (or not) and where/how/if these services/technologies/social trends fit into or threaten my client’s business strategy. With this information, you bring the client ideas, plans, concepts and even prototypes so they can make informed decisions about what they need to do online.
At the moment, execution of the ideas is also a key part of the digital agency business. Someone has to design and code the stuff that makes the user experience happen, and having a good staff in place to handle the implementation of the big idea was the most sensible thing for an agency, so agencies are in the habit of handling much of the design/build effort in-house.
This would be a good time to drop this image into this post:
That’s most of the cast and crew of the movie “Transformers.” I did not count, but I guess there’s about 200 people in that image, and of those 200 people, I’ll venture to guess that less than 20 of them are actually employees of Paramount Pictures, the company that produced the film. It might be as few as none, depending on how the studio structured the production. Yet the hugely complex special effects – both physical and digital – get done. Schedules are made, people show up, the movie gets made. Now, we can argue that Transformer’s wasn’t a great movie, but that’s not the point.
The point is that execution of complex projects is not always something that requires a large staff – in fact, what it requires is a strategy, good ideas to realize the strategy, a creative approach and good program management to select, inform and coordinate a group of experts to implement the concepts. Specialists from Cinematographers to companies that can make it look like it’s raining come together, coordinated and managed by a production company, and then disband. The scope of services you can get is amazing.
In my opinion, this is the direction that digital media agencies must go – they must be more like a production company that managed large scale programs by bringing in and managing experts in a variety of domains. Need an iOS app? Bring in the iOS app guys. Need a Roku app? Bring in the Roku folks. It might even be the same people – but the agency hires based on the needs of the project at the time.
Equally important, the domain experts who provide services to the digital media agency need to be just like the specialists in the film production world. There are companies that are the best in production trucks and trailers and there are companies that do nothing but stunts and while smaller in size, they are vitally important to the big productions.
This will require a new way of thinking and vastly greater use of online collaboration tools and faster processes.










