The AOR is dead. Long live the AOR.
In advertising, like in any industry, people try to identify trends. What is the future of advertising? Every few years, or few months, it changes. Momentum builds. Articles are written. Mission statements are rewritten. And then it changes again. Digital. Social. Experiential. In-house. Data. Brand purpose. Project-based. The 30-second ad. The six-second ad. Always-on. Omni-channel. Consultants.
One topic close to my heart that’s popped up more than a few times is the death of the AOR. That it’s all going project-based, and to fight it is futile. I don’t disagree that this is a trend or even a reality. But I don’t think it should be the model we strive for or the new way forward. It’s more a symptom of the industry’s ails than a cure.
Many ad agencies aren’t providing enough value to justify an AOR relationship, so clients don’t see the value in them. Many agencies don’t care about business results. Sure, they say they do. You have to. But that isn’t backed up with action. The main priority is to win an award or win new business. But not move the business they currently have. Not really. Unsexy things like email marketing programs are avoided like the plague when they could add millions to the client’s bottom line. There’s no long-term strategy, just fun one-offs. They do only what the statement of work clearly states. They aren’t digging into sales data. They aren’t proactively identifying new moves the brand can take. They aren’t keeping a consistent dedicated team on the business.
Of course, clients aren’t blameless in this. Many treat creativity as a commodity, awarding work to the lowest bidder. They’re stuck in short-term reactionary briefing cycles, so they don’t value long-term partnership. And going all in on one agency can be scary. But having a roster of five that you can rotate in and out? What’s not to like?!
Well, a lot. On both sides of the relationship.
It’s harder for a client to manage three or four agencies instead of one. To get them up to speed. To onboard them. To provide the context they need to do the best work. To learn each other’s love languages. Project-based arrangements also lead to thinking that doesn’t go beyond the SOW or afford the ability to have people thinking in between the briefs. As a result, it produces shorter-term thinking and stifles longer term innovation. Why bring an idea that will take a year to make or that requires operations or tech changes, when the ask is a holiday campaign?
It’s also harder for agencies because there is a lack of consistent revenue to staff the agency or the account with the right people or, as is sometimes the case, the same people. It’s hardest on big shops with big overhead, but it makes the new business pipeline more grueling for agencies of all sizes. More pitching for smaller wins. And if onboarding and relationship building suffer on the client-side, they likely suffer on the agency side as well. The necessary processes slow down. Get clunkier. The only thing that escalates? Disfunction.
There is also a personal reason that I believe an AOR model is the right answer—I spent 7 years working on Domino’s at CP+B. It is without a doubt that the AOR relationship was a great thing for both sides, and an integral component of our success. It led to better work, better results, and happier people. Ideas like the DXP, Emoji Ordering, Domino’s Wedding Registry, Hotspots, and Paving for Pizza (after my time) don’t happen in the project-based world. At least not very often. Many took years to bring to life. So it should be no surprise that the agency I co-founded a little over three years ago is bullish on the AOR model. In fact, we’re almost a year into our AOR relationship with Jimmy John’s and we’re already starting to see the benefits.
Personal experiences aside, if we look at some of the most memorable and insanely effective work, from the past and the present, the vast majority has come from AOR relationships. Apple and Chiat. Nike and W+K. GEICO and The Martin Agency. GE and BBDO. BK and David. BMW and Fallon. Taco Bell and Deutsch. The list goes on and on.
Even with all the evidence that supports the benefits of an AOR relationship, do I think the move from an AOR model to project-based arrangements will reverse? No. But I do believe that every agency should strive to be worthy of being an AOR, and that clients should strive to find an agency worthy of the title. Both client and agency have to be willing to be transparent and question every aspect of the company and agency’s thinking as they work to solve problems together. This is scary, and it takes vulnerability and trust. It’s not so different than personal relationships. Finding someone you want to spend the rest of your life with is hard and a little bit crazy. From what I hear, it makes for a happier, healthier, and more fulfilling life. For now, I can only speak to the benefits of an AOR with any authority.
Content Marketing Lead @ Auror + SaaS Advisor
4 年Great read. As someone who's worked at an agency and in house, I can definitely see both sides to this. Saw first-hand the magic Martin was able to make for Oreo and Geico. That said, it can be difficult (and expensive) to find the right fit. Knowledge of the industry is a huge plus for me. Thus, the niching down model a lot of agencies are taking makes sense.
Dedicated Vice President of Program Management | Agile Methodology ? Marketing Projects ? Business Process Mapping ? Multi-Channel Campaigns | Scrum Master Certification
5 年A vital read. I’d wager that both approaches are valid but require different casting to be successful. Having worked both sides of this approach, I much prefer the deeper relationships built as part of an AOR and the greater creative risks and rewards it reaps.
Executive Producer
5 年Well done. So true.
Marketing/Advertising Executive | Integrated Marketing | Strategic Planning | Brand Positioning | Campaign Development
5 年Great insight. After working on both the agency and client-side, it's clear that commoditizing creative work and the partnership an agency can bring to the table benefits neither party.?
Lover of life, language and literature, advises brands on how to win hearts and wallets.
5 年Great point on the quality of work that comes out of many AOR relationships. The biggest challenge seems to be in establishing talent continuity at the top on both sides of the client-agency relationship. When strong personalities have many years together and can clash in an exchange of words about the business or the work without any feathers being ruffled or egos bruised, then great work has a better chance to get produced and do all it can do.