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Ad agencies possess immense creative problem-solving talent but narrowly confine it to communication campaigns. They could deliver enormous value by redesigning a menu's choice architecture or fixing customer journey friction, but don't because clients lack the job titles and procurement processes to buy such "trivia."
Agencies often pitch exciting, ambitious "North Star" campaigns that get one department excited. However, these ideas frequently fail because the client's internal teams (e.g., digital, PR, comms) are siloed and not aligned. The agency sells a vision that other departments ultimately block, leading to an inability to deliver.
The traditional agency model of being paid for strategy and ideas is obsolete. To provide real value, modern agencies must function as production companies that create tangible output—videos, content, and live events. Clients should not pay for thinking alone; they should pay for making.
For years, marketers could succeed with mediocre creative by optimizing media buys. As platforms automate targeting, creative excellence is now the primary lever for success. An organization that doesn't respect and elevate creativity across the entire marketing function is destined to underperform.
The primary barrier to properly valuing creativity in advertising is the industry's reliance on a service-based, billable-hour model. This is a fundamental flaw that prevents creative work from being valued on its impact and outcome, unlike in the tech industry.
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.
The ad industry's standard pitch process is fundamentally broken. It requires agencies to provide their core product—strategic and creative thinking—for free, leading to an unsustainable economic model that fuels burnout and commoditization.
The client-agency model is broken. Agencies are held accountable for every penny spent but receive minimal, short-lived credit for massive wins (like Ogilvy earning just $350k for "Share a Coke"). This structure disincentivizes true creative risk-taking.
Paying an agency just to brainstorm ideas in slide decks is inefficient and disconnected from modern marketing needs. To be effective, agencies must integrate creative ideation with in-house production capabilities to execute at the volume and speed required by digital channels.
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.
The traditional client service model is flawed because it forces ambitious creatives to seek approval from clients who often have lower creative standards and care less about the outcome. This dynamic inherently limits the potential of the work.