Putting the agency into digital
Apparently there are 3000 digital agencies in the UK, which is probably a significant under-estimation. Consider the fact that the vast majority of those didn’t exist ten or even five years ago and you realise we are still, relatively speaking, in virgin territory.
So, who are the players in the digital agency space? In no particular order we have the advertising networks such as WPP, AMV, Publicis etc who have “diversified” into digital with varying degrees of success. They have done this either through acquisition, creating new start-ups under their umbrellas or retraining and hiring - adding to their existing skill sets.
Then you have the marcoms agencies, some are public companies but the majority are still independent. Their heritage may lie in Direct Marketing, Sales Promotion, Design etc and the advent of digital has led them to need to fulfil their clients’ needs by offering digital services. As a result many will now say they are “integrated” or “full-service”.
At the same time as the marcoms agencies were diversifying the specialist digital agency was on the rise. These are essentially either technically or creatively led, with a focus purely on the development of internet based products, they generally steer away from “offline” media and tend to be unencumbered by what they would call, “old-school” agency practises.
Finally, we have the software houses. Out and out technically based and rarely seen above the parapet in the pure “agency” world but often found at the exhibitions and conferences that still characterise the I.T world and it’s need to show off and share their latest developments. The way the software houses make money is usually on a very different model that the digital agencies and often one which they covet. Recurring license based revenue streams are tied into longer term contracts which allow them to forecast far ahead while the agencies buffet in the peaks and troughs of fee based work.
So where does that leave us? What really makes an agency digital? And what makes a good digital agency? There is of course no one right answer but it certainly is possible, with the right guidance, to arrive at a very well-informed view. And that is a good place to start.
See also: Digital Agency Network