Key Takeaways
- Agencies are evolving beyond traditional advertising, creating products, services, and software to remain relevant and drive innovation.
- By leveraging their expertise in strategy, design, and consumer engagement, agencies can develop products that address real-world needs and resonate with target audiences.
- Creating intellectual property and experimenting with new products allows agencies to gain leverage and control in the industry, diversifying revenue streams and reducing reliance on traditional services.
In the ever-evolving marketing landscape, advertising agencies are stepping beyond their traditional roles, metamorphosing into innovative powerhouses that create products, services, and software. This transformation is driven by a relentless pursuit of relevance, an embrace of technological advancements, and a shrewd strategy to diversify revenue streams.
Incubators and Accelerators: Nurturing Innovation
To foster innovation and nurture groundbreaking ideas, agencies have established incubators and accelerators. These initiatives provide a fertile ground for experimentation, allowing agencies to explore new concepts, products, and services.
Leveraging Expertise: From Strategy to Products
Agencies are leveraging their deep-rooted expertise in creative strategy, product design, and consumer engagement to create products that resonate with target audiences. By understanding consumer pain points and desires, agencies are able to develop products that address real-world needs.
Intellectual Property: Gaining Leverage and Control
By creating intellectual property (IP) and experimenting with new products, agencies are gaining leverage and control in the industry. IP ownership allows agencies to retain a stake in the success of their creations, ensuring a sustainable revenue stream and reducing reliance on traditional advertising services.
Product Innovation Success Stories
Numerous agencies have already made significant strides in product creation, with notable successes including:
- EOS: Anomaly helped create and market EOS lip balm, which became the best-selling product in 2013.
- Hackaball: Made by Many created a soccer ball that responds to commands via an iPhone app, fostering interactive play.
- Betsy’s Best: Omelet launched a line of gourmet peanut butter as part of its Omelet Brands unit.
- Taonii: Redpepper developed an app that connects users with deals based on their preferences and location.
- Nail Polish: KBS created single-use nail polish that can match any color, with potential applications in other industries.
Beyond Products: Agencies in Uncharted Territories
Agencies are not just limited to creating physical products. They are also venturing into software, apps, and other digital offerings. Some notable examples include:
- Fat Pig Chocolate: The Brooklyn Brothers combined agency work with confectionery, creating Fat Pig Chocolate.
- Two Fingers Brewing Co.: Karmarama launched a beer to raise funds for prostate cancer research.
- Papa’s Pillar: CP+B helped develop a Hemingway-themed rum, Pilar, combining marketing expertise with product creation.
- Sir Richard’s Condom: TDA Boulder launched a chemical-free condom brand with a buy-one give-one model.
- Pearl Street Marketplace: Victors & Spoils created an online platform connecting brands and creatives.
Software and Digital Offerings
Agencies are also developing software and digital offerings that cater to the evolving needs of their clients and consumers. These offerings include:
- Playground Sessions: BBH launched software that teaches people to play the piano.
- Cinder: The Barbarian Group developed an open-source software platform for creative hackers and coders.
- Field Notes: Coudal Partners launched a series of notebooks targeted at creatives and writers.
- The Bouqs Co.: Deutsch LA supported the launch of an online flower retailer that prioritizes sustainability.
- Crowdtap: MRY created a platform for brands to connect with consumers, which later separated and raised venture funds.
- YouEarnedIt: Rockfish developed an employee engagement software used by major companies.
Bonus: The rise of agencies as product creators is not just a trend but a testament to their adaptability and resilience. As technology continues to reshape the marketing landscape, agencies are well-positioned to remain at the forefront of innovation, offering a comprehensive suite of services that cater to the evolving needs of their clients and consumers.
In the words of David Droga, founder and creative chairman of Droga5, “The future of agencies lies in their ability to create products and services that solve real-world problems. By embracing innovation and leveraging their unique expertise, agencies can transform themselves into true powerhouses of the marketing industry.”
Frequently Asked Questions:
What are the benefits of agencies creating products?
Agencies can gain leverage and control in the industry, diversify revenue streams, and remain relevant in the evolving marketing landscape.
What types of products are agencies creating?
Agencies are creating a wide range of products, including physical products, software, apps, and digital offerings.
How do agencies leverage their expertise in product creation?
Agencies leverage their deep-rooted expertise in creative strategy, product design, and consumer engagement to develop products that resonate with target audiences.
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