The buzzword in the advertising industry today is “restructuring.” Indeed, traditional ad agencies are redefining their business models — quiet layoffs, strategic hires in data and performance marketing, back-to-office mandates, and increased utilization of AI and offshoring.
Amid this shifting environment, crypto marketing agencies wonder whether they should take cues and undergo similar changes.
The Great Reset in Ad Agencies
“Great Reset” encapsulates many organizational changes sweeping traditional ad agencies. This evolution responds to a transformative period where agencies deal with workforce disarray, increased competition, and technological advances.
For instance, agencies are letting go of mid-level staffers to focus on strategic hires in specialized areas. These include data analytics and performance marketing.
The decisions signal a pivot from a generalized workforce to one with specialized skills in modern-day advertising.
Jay Pattisall, VP and principal analyst at Forrester, termed 2024 as a “turning point” for agencies that are making a choice between a tech-driven approach and a services-only model. Agencies realize that to stay competitive, they must cultivate a talent pool that harnesses data-driven insights.
Traditional agencies are also taking a bold step to pull the workforce back into the office. Consequently, this change seems to signal a return to the belief in in-person collaboration as the cornerstone for creative endeavors.
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Such a move has raised questions, causing what industry insiders predict will be a substantial “shuffling” of employees in the coming months.
Automation and offshoring represent another critical facet of the “Great Reset.” AI’s increasing role in automating repetitive tasks is a double-edged sword. It helps agencies streamline operations but also threatens job security.
Simultaneously, more marketing agencies are exploring offshoring options. They are setting up capabilities in Costa Rica and India to generate content at scale. Subsequently avoiding the overhead costs associated with a place like New York City.
Perhaps the most crucial aspect of this “Great Reset” is the shifting power dynamic between employers and employees. For instance, Marla Kaplowitz, CEO of the 4A’s, noted a swing in the pendulum back toward employers. This is a significant change from last year when the power lay squarely with employees.
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Ad agencies are now dictating terms, from employment contracts to back-to-office mandates, signaling a transformative period that industry experts predict will continue well into 2024.
Lessons for Crypto Marketing Agencies
Crypto marketing agencies operate in an industry inherently more attuned to digital trends. Nevertheless, these agencies should heed the restructuring of traditional ad agencies as a prescient lesson.
After all, the crypto market is not immune to market dynamics or shifts in client spending.
- Talent Overhaul: Agencies like Dentsu and Publicis set a precedent by reorganizing staff to focus more on data analytics and performance marketing. Crypto marketing agencies, often smaller and more agile, can lead in this space by recruiting and nurturing talent that understands cryptocurrency and data-driven marketing.
- Embrace Remote Flexibility: While traditional agencies enforce back-to-office mandates, crypto marketing agencies can capitalize on remote work to tap into a global talent pool. Such an approach offers them agility and global reach.
Read more: 13 Best Crypto Marketing Agencies for 2023
- Utilize AI and Automation: AI’s role in advertising is growing. Greg Paull, principal at R3 Consulting, estimates that 7.5% of marketing agency jobs could be lost to AI by 2030. Crypto marketing agencies should integrate AI tools now to streamline operations and derive insights, setting themselves apart from competitors reluctant to adapt.
- Cost-Efficient Strategies: Stagwell CEO Mark Penn pointed out during a call with investors that restructuring is about “reduction in staffing costs.” Crypto marketing agencies can similarly explore offshoring or freelance models to build a more cost-effective, scalable business.
The Future is Now
The wave of restructuring across traditional ad agencies is a roadmap for crypto marketing agencies. Therefore, agility, digital savviness, and a global mindset are necessities for staying ahead.
Restructuring today could be the difference between relevance and obsolescence tomorrow.
Read more: 5 Need-To-Know Crypto Advertising Tips
So, should Web3 marketing agencies follow suit in restructuring? The answer, it seems, is a resounding yes — lest they miss the tide and find themselves struggling to catch up in an industry that waits for no one.
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