Digital: An Unstoppable Force

One major pain point for agencies is clients moving their digital advertising in-house. This is being done primarily for speed and data and the catalyst for it is the disintermediation of ad buying and selling. Starting with networks like Google AdWords, DoubleClick and Facebook’s Audience Network (FAN), clients gained access to capabilities they could only get through agencies. This led to clients buying digital media directly and saving on the 10-15% agency commission.

Furthermore, digital allows clients to collect vast amounts of data. To mine it for insights, more and more clients are buying AdTech and MarTech applications, which offer AI & machine learning. This allows them to get a much clearer picture of what’s actually happening with their marketing and make more informed decisions than an agency could.

Though this is another setback for agencies it may only be a temporary one. It is likely that soon clients in the same verticals will be using the same AdTech and MarTech, which means they may all end up with similar strategies. To differentiate themselves, businesses will most likely turn to agencies again.

Data Science & Empathy: A Winning Formula

Modern advertising has shown that connecting with prospects and customers at an emotional level is one if not the most powerful differentiator. And to do this effectively requires empathy.

Empathy is where agencies shine. Understanding a client’s business problem and then translating it into messaging that triggers a powerful emotional response is just not something AI can do yet. Artificial empathy (AE) is a long shot because it requires understanding and sympathizing with the mind, body and soul. Until that day arrives, agencies will continue to play a very critical role.

But that does not mean agencies shouldn’t evolve in this data-driven age. By combining data science with their existing strengths, they’ll be able to not only find powerful insights but also better understand the reasons behind them. And with the granular-level segmentation, targeting and positioning MarTech provides, the persuasive messaging they produce will be even stronger than it was before.

So, let clients take on the tasks that require speed and immediate vetting. For agencies to make an impression and stay relevant, they should use their strengths (empathy) to boost the metrics that matter (like RoAS, CPA and LTV).

Want to add AI to your agency’s capabilities?
Then check out Alavi.ai

With Alavi.ai, agencies can easily find “more of the right buyers” to increase RoAS, lower CPA and improve Lifetime Value. It truly makes data science accessible to all and is designed to help digital marketers of all levels deliver consistently great results.

Using AI & Machine Learning, Alavi identifies naturally occurring user segments with higher conversion rates and average order values from all your sources of traffic. The platform significantly reduces the time required to optimize and launch campaigns while letting agencies do more with the current resources.

To learn more, have a look at Alavi’s latest Big-Win Success stories.