What next for the Digital Boutique?
Business → Marketing & Advertising
- Author Neil Tug
- Published August 7, 2010
- Word count 545
EMM International has undertaken a study in the UK into the future of specialist ‘Digital Boutique’ agencies in a rapidly consolidating world. The i-Level collapse brought the findings of the study into sharp focus.
Recessional market conditions, and the subsequent resurgence of procurement-led supplier appointments and re-pitches, have driven digital fee and commission revenue for specialist digital agencies down. The ‘cash rich’ media buying powerhouses have capitalised on this, squeezing the boutique agency’s margins and snapping up digital business that previously sat outside the traditional multi-national remit.
Clients that have moved into the agency groups have begun to see fantastic cost efficiency improvements and heavily accountable ROI online, but is this everything? Digital media has seen more growth during the last one or two years as a result of the recession than most predicted. Advertisers are slowly getting smarter at investing, and digital has become the weapon of choice for a client looking to stretch their ever decreasing budget. However, the boutique digital agency provides something lacking from many of the consolidated media agency groups - Soul. As one of our respondents put it "process hinders creativity".
Flair, the personal touch, innovation, service levels and creativity are the strengths of the Digital Boutique, and these are the battlegrounds left for it to fight on. As the economic situation eases, advertisers with a new found love of digital may start to shop around for more than just good prices; they’re going to start looking for the ‘big idea’ again, the campaign that makes their name in the industry. Digital boutiques are much more suited to the bespoke solution and setting digital trends. As independents they don’t have the volume related deals to fulfil with vendors that agencies with a buying group have to contend with during planning.
It’s not just about the creative output of the Boutique though. Small companies and agencies live and die with their staff. A digital planner has a tough choice – opt for the fast-paced promotion-rich world of the specialist agency, with the inherent risks of being more sensitive to market conditions; or sit it out in a group agency, with a slower moving career path and fewer opportunities to shine, but with enhanced job security. In order to survive, the Digital Boutique needs to work hard to reassure and retain staff. With one or two big clients providing a huge slice of revenue some employees will be looking at what happened at i-level with trepidation.
The equity companies responsible for i-Level’s downfall clearly took the view that the Digital Boutique business model was unsustainable following the loss of two major clients; COI to WPP’s and GroupM’s consolidated M4C and Sony Electronics to OMD, as the most recent part of their consolidation. These two clients represented a huge portion of i-Level’s revenue, and the company hit trouble with its value plummeting from a high of £46million.
Our study concluded that the Digital Boutique still has a unique place in the market, just as the Group Agencies do, differentiation of products, skills, services and the people have ensured that the boutique remains relevant. It’s just that, right now, it’s all about survival, and the group agencies are more experienced in that field.
EMM international is 16 years old and one of the world's leading media management companies, providing media management services and media auditing services. EMM evaluate, benchmark, and monitor our clients' media investments, bringing savings and added value.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Do Compelling Marketing Pictures Unlock Sales Potential?
- Become an SEO Expert: The Benefits of Certification
- 8 Essential Steps for Hiring and Collaborating with Commercial Photographers
- Marketing Strategies for Mooncake Suppliers: Standing Out in a Crowded Market
- Discover The Hottest TikTok Trends Taking Over Your Feed!
- How Crypto PR Exists Beyond Traditional Marketing
- How To Automate Affiliate Marketing?
- Effective Marketing Strategies for Tradies: Boost Your Business in 2024
- The Dos and Don'ts of Creating Engaging Online Content That Keeps Your Readers Coming Back
- Unleash Your Inner Artist with Google's Mind-Blowing AI Generator!
- The Impact Of Social Media Algorithms On Marketing Strategies
- Redefining Success with a Holistic Approach to Marketing Measurement
- Dong Yuhui being accused of being racist against women because refusal to sell women's underwear.
- Creating Buzz in the Hallways: High School Advertising Techniques That Get Results
- How does social media marketing tie into a digital solution service?
- Custom DVI Cables: Everything You Need to Know?
- Diet Plan for Weight Gain
- Navigating the Dynamic Landscape of Hot Trends in SMM Panels
- Unveiling AI Brilliance: Leonardo Laboratories at the Fore of Innovation
- Unlock Your Career Potential: How Our Digital Marketing Institute Can Propel You Forward in Mumbai
- Social Media Marketing: Harness the Power of Online Platforms for Success
- Growing Your Business Online: How Gardeners Can Utilize Digital Marketing
- Measuring and Boosting ROI Across SEO, Email, & Social Media
- Navigating Challenging Business Conditions: The Power of Strategic Marketing
- Unlock Your Style: Fortnite Skins for Sale
- The Ultimate Guide to Color Grading: Techniques and Tools for Beginners
- Here Are Some Effective SEO Strategies For Startup Success
- How to Create an Effective Business Marketing Plan
- Traditional Direct Print Marketing Isn't Dead: Unveiling Its Untapped Potential
- New Age Student Recruitment: How AI is Revolutionizing International Enrollment