GM created a tiered agency structure. A "foundational" agency handles high-volume, operational production work (the "60%"). This frees up smaller, specialized creative agencies for each brand to focus solely on distinctive, compelling creative without getting buried in executional tasks.
GM operates on a functional model, not siloed brand divisions, to maximize economies of scale. By developing a single core platform that can be adapted for different brands like Chevrolet and Cadillac, the company leverages its global scale to offer more features and technology at competitive price points, a key advantage in the capital-intensive auto industry.
The wave of mega-mergers in advertising is creating a two-tiered industry. On one side are giant holding companies like Omnicom and Publicis. On the other are thousands of small, agile independent shops, often founded by the talent shed during these consolidations, creating a clear strategic choice for brands.
The modern marketing flywheel requires testing creative organically, then amplifying winners with paid media. An agency that only handles one part of this process cannot be fully accountable for results. To prove ROI, agencies must offer both creative development and media buying as an integrated service.
Agencies are optimized for efficiency, stifling the creative experimentation needed for platforms like Meta. Top-performing brands employ an in-house strategist whose sole job is generating a high volume of diverse, "wacky" ad concepts—a function that can't be effectively outsourced.
To modernize her team, Ally's CMO designed a new structure based on core capabilities (Insights, Execution, Creative, Measurement) rather than traditional functional silos. This model, benchmarked against other high-performing organizations, creates clearer ownership and a more effective workflow.
Amazon's CCO explains that at an agency, creativity is the core product. In-house, it's just one business function among many. This requires a humbling shift from "selling" ideas to deeply understanding the business constraints and priorities that drive decisions, moving from being listened to, to being the listener.
GM's marketing leader reversed a trend of outsourcing key functions. He argued that relying too heavily on agencies underdeveloped internal skills, making the company slow and unaccountable. Bringing capabilities in-house, while challenging, was essential for transformation and agility.
At large companies, decisions often gravitate toward optimizing near-term financial results, which can subtly degrade customer experience and creativity. GM's marketing head suggests a key role of the CEO is to actively shield the long-term creative vision from these short-term pressures.
Transform a creative department from a production house into a strategic partner by changing how you brief them. Instead of giving prescriptive directives, present the business problem that needs to be solved. This empowers creative minds to contribute to strategy and deliver more impactful solutions, not just executions.
Initially, 6AM City hired two editors per market. Over time, they discovered a more efficient model: empowering a single, autonomous local editor and centralizing all other operations (marketing, sales support, design). This streamlined the process, reduced overhead, and allowed the local editor to focus purely on creating a high-quality, localized product.