Revenge of the nerds
The era of the jocks is over, and the nerds are taking over the media agency scene, writes Ian Perrin, managing partner, Speed.
In the decade following the GFC, media agencies saw their operating models irrevocably change. Client procurement departments demanded the lowest possible rates to win business. So, they moved quickly to deliver this by aggregating into buying groups and focusing their product offering on extracting savings. This trend led to the death of independent planning agencies focused on the effectiveness side of the ledger, such as Bellamy Hayden, Naked, Razor and many others. Big, muscular, and cheap trumped small, nimble, and smart every time. The jocks had truly arrived.
But as we move into a new marketing era, that tide is changing. Of late, many smaller, strategic, and data-focused media agencies are thriving. Those that promote smarts over scale, collaboration over clout and people over profits. When Hatched won Mumbrella’s media agency of the year, it felt like a significant tipping point in the transformation of power… The nerds had found their revenge.
Why the change?
Firstly, media consumption has evolved significantly, shifting investment away from traditional TV networks and toward more fragmented screen behavior. For a client that has an older-skewing audience, TV remains critical, but for most clients, they need to look at more thoughtful approaches to the delivery of their audiences. Pitching their business based on the lowest CPM against a list of old-fashioned TV buying parameters is obsolete.
Secondly, with digital and performance media becoming increasingly important, data analytics is a game changer. Using clients’ business data to inform fast and effective decision-making that has a tangible impact on business performance is becoming easier for clients to sell to their CFOs, bypassing the need for procurement. Cost is less relevant if business performance improves.
Thirdly, larger groups’ race to the bottom mentality has compromised their operating model, human capital, and intellectual property, leaving savvy clients with trust issues. Clients worry that transparency in the media ecosystem is compromised. The staff on their business are not supported. And the worst part is they often have no choice in the matter, as annual deals dictate their media partnerships. In short, it is a recipe for disaster.
Many marketers like to think of their brands in terms of archetypes, and these macro trends will create two distinct media agency archetypes in the future. The jocks who will wield their trading might to appeal to mostly multinational clients, who select their agency based on efficiency. And the nerds who use their analytical smarts to appeal to primarily local clients who choose their agency based on the effective delivery of business results.
So, this begs the question, which archetype best describes your needs? Do you require a jock or a nerd?
Ian Perrin, managing partner, Speed
Insightful commentary as always Ian. I agree, there is a role for both types of archetype, but there is no doubt we’re seeing a groundswell of clients and people voting with their feet and opting for the independent option, whether as an agency partner or an employer.
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Another interesting win was Thinkerbell winning Full Service Agency of The Year.
The jock’s days are done, agreed.
However, the nerd is often ineffectual as they are bitter and twisted as they never got humanity, as the nerds were always bullied by the jocks. The nerds retaliated by hiding behind their computer screens, and giving up on their people skills.
The GEEKS however are the ones who are now winning. Combining intelligence and creativity to ensure their messages are both seen and heard. The geeks are ruling the earth with their clever toys built from a stronger human understanding.
So why work with a jock or a nerd, when there’s a geek available.
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