New agency models, co-creation and collaboration

There’s a shake-up in the ad agency world. Several prominent articles have shared that creative leaders (specifically at an executive level) are leaving large shops. These individuals are not only looking for greater opportunity, but freedom from economic pressures and traditional agency business models.

And ironically, many of these individuals are starting the very agency-concepts responsible for pressurizing their creative leadership roles. So, is this a case of, ‘If you can’t beat’em join’em’, inspired innovation or forced innovation?

I’m going to take a positive angle and say it’s an evolution of the tools and creative solving process. A shift where virtual collaboration is becoming easier. And a realization that co-creation with multidisciplinary teams shapes a better solution.

co: is a flexible network of partners. They assemble multidisciplinary teams to execute projects with only the necessary parts for that project.

“WE DEVELOP business strategy, brand story, product innovation and new ventures, using a new model: flexible collaboration with a network of expert partners.”

Victors & Spoils is a creative (ad) agency based on crowdsourcing. V&S recently claimed 1,800 strong in their (virtual) creative department:

“Victors & Spoils is revolutionizing the ad game by leveraging crowdsourcing to deliver innovative creative for less dough and less time.”

A few challenges and opportunities with these example models.
1) These ‘agencies’ were founded by big names from large agency networks. These entrepreneurs have existing client relationships, solid resumes and powerful reputations. Could a ‘no-name’ creative solver come-up in this kind of virtual environment? Could ‘just about anyone’ develop a virtual agency model?
2) Many of these ‘employee’ ties are virtual, How do these collaborative platforms develop and foster a loyalty to ‘the employer’?
3) Companies are tired of ‘over paying’ for creative services. Creative solvers are tired of being ‘under valued’ (there are always two stories). A virtual team has nearly zero overhead costs. A hand picked per-project-team would significantly increase utilization. Will these operational efficiencies drive down cost? Will expert multidisciplinary teams generate a better solutions? The combination looks like a win-win for the buyer, but will certainly add financial and performance pressures to the agency market.
4) There’s kind of a 3rd wheel in co-creation. And that’s the people the solutions are being designed for, or the clients who commission the work. Is there an opportunity to open up the model to them, is that the next evolution? Sites like openIdeo are gathering insights and research - could an agency model use this kind of collaborative innovation?

The saying for several years has been ‘we live in interesting times’ - a cliche saying that won’t go away for some time. Especially as we continue to come to grasps with (a) the economic pressures businesses are facing (b) the social innovations and marketing accountability the web has created and (c) the simple fact that buyers are demanding higher quality (and results) for less money.

Overall, the agency world is being forced to re-invent itself to remain relevant to the market they serve. And the harsh reality is that those who don’t change under these circumstances could easily be left out of work.