The big digital agency model is gradually falling apart. Big brands are turning to smaller agencies to get the job done.
I know, that’s a bold statement. And saying something like this will not help me make any “friends.” But I’m not in the business to make friends. I’m in the business of serving our clients and making sure brands are not just writing blank checks to the big digital agency’s banks.
It is true that big brands hire large firms like WPP, Dentsu, and Interpublic Group to name a few, as their agency of record. It’s expected. These big agencies are great at branding, interactive campaigns, and innovative creatives.
But the buck stops here.
For big agencies, with their impressive portfolio, being able to count on household brands like Pepsi, Absolut Vodka, Domino’s Pizza, Nike, and Burger King as active clients is a measure of success.
These big, worldwide brands, often hire the big agencies as their record creative agency. And every time a new deal is signed, they’ll be sure to make sure you see it across the news wire.
Let’s address the elephant in the room. It is EXTREMELY easy to spend tens of millions on media buy and see huge numbers when you are working with household brand names like Nike and Pepsi.
Big digital agency account teams like to put together fancy PowerPoint decks to showoff these astronomically-vanity-unactionable-feel-good metrics. I know, I have been there and done that.
Size Matters. Brands Turn to Smaller Agencies for Expertise and Speed
Instead of finding out the hard way, we’ve put together recurring benefits we see from our clients and brands we talked to about their shift from big digital agency contracts to smaller agencies.
Case Studies: Let’s Talk Results
Big agencies have a laundry list of powerful case studies that look compelling and beautiful. But let’s step back for a minute and look at the word “powerful.“
It’s a big word. But going deeper into the context and how it relates to a case study, it translate into results.
The RESULTS that the campaign delivered to the brand is powerful if the desired outcome was met or exceeded.
By definition, you don’t need to be a big digital agency to produce powerful case studies. In my opinion, it’s easier to drive results when you’re working on a household name like Pepsi or Sony. It takes more experience and creativity when you have to elevate a challenger brand.
Fullmoon Increases revenue by 260% for an aftermarket brand
Regardless of the size or your brand, it behooves you to consider working with smaller digital agencies if you require a more hands-on approach, precision, and a quick turnaround.
Broad Experience: Clients Across Different Industries
You don’t need to be a big digital agency to have worked with brands from different industries. That’s a farce.
Big agencies do have the advantage of having household brands on their roster from different industries, but the difference ends there.
Smaller digital agencies like Fullmoon Digital made the decision to work with brands from different industries since day one. Why? One word. Diversification.
Our founder, Derek Chew, worked in-house and at a subsidiary of Omnicom Group for many years and noticed the risks in servicing a niche market (COVID-19 annihilated many agencies that had most of their eggs in one basket).
Additionally, by serving different industries, our team gets to consistently sharpen their skills and master the craft of blending data and creativity to produce the best campaigns for clients.
Big agencies, while working in many industries have a hard time adapting, pivoting, and reacting quickly to market shifts.
Meeting Are Going Virtual Whether You Like It Or Not
The traditional big digital agency approach to face-to-face in person meeting with clients is undergoing a major shift.
I will agree, without a shadow of doubt, that human relationships is the foundation of a successful partnership.
Big agencies are built on in person client meeting with their account managers — that over reliance on the “human touch” is antiquated.
Human touch and interaction is more than just those in-person meetings. Saying that you need to meet your clients face-to-face is myopic and short-sighted. This is why big agencies are challenged when a shift is abrupt. The bigger the ship, the longer it takes to course correct.
The advantage belong to the smaller agencies, hands down. It is the capacity to connect with another human being on a personal level stretches beyond location and office space.
At Fullmoon Digital, we have been functioning as a team, 100% remote since we started years ago. Our team has been using Zoom and Microsoft Teams to communicate, and our clients are geographically spread out — so you could say that we know a thing or two about building long-term relationships.
Smaller agencies are built on relationships. Many of them acquire new clients through word of mount and referrals. Trust me, that’s how Fullmoon Digital started and still largely rely on to grow our portfolio.
Unlike a big digital agency, the smaller guys don’t have that discretionary budget (or slush fund) to wine and dine, host extravagant events, or build large sale teams.
More Staff Doesn’t Mean Better Results
The one thing that a big digital agency will always throw in your face is how many employees they have and how big their team is. That’s the flashy thing to say — and yes it’s impressive to have 800 or 8,000 employees.
But, my question is this. SO WHAT!?
Heard of Pizarro? I doubt many of you have. But there’s a good movie capturing how Pizarro’s 180 men defeated 30,000 warriors of the Inca emperor Atahualpa’s army in 1532.
Heard of 300? I’m sure you have. Gerard Butler was really good in that movie!
What about David and Goliath? I’m definitely certain the story of the underdog has permeated society.
History has proven that you don’t need big armies, or teams, to get results and win. You do need to be strategic, agile, and adaptable…and most importantly have the right people on your team.
In digital marketing, brute force is never a winning tactic. You can’t force your customers to visit your website, much less buy from you. You must build relationships, provide value, and let the sale happen by itself.
Big agencies like to use sheer numbers as a tactic to win new business or retain their clients. That’s also one reason why brands are paying so much more to a big digital agency — they are bearing the costs of headcount.
You cannot masks inexperience with a large team. Eventually, the brand will see through the cracks and start looking.
It’s not about the size; it’s about the quality, results, and client
Technology and consumer demands grow exponentially each year. That means marketers are faced with a great deal of pressure to keep up with trends, understand shifts, and have the agility to pivot when necessary.
Of course, we don’t want to have the shiny-penny syndrome. But knowing what’s going on and having a pulse on the industry is valuable.
Whether you are a big digital agency or a smaller one, winning clients is a matter of proving your ability to deliver results, staying on top of consumer needs, and being a true partner (minus the lip service).
Cat-Fished By Big Agencies
Throughout my career, I’ve worked in-house, agency side, client-side, and now running our own digital marketing agency. The game is the same, every single time.
When I was in-house, big digital agencies would send their A-team to the pitch. This would be the team that’s supposed to be working on the project, but it turns on, these guys are super-high-level-whip-cracking-delegators who have the lower-level staff to do the actual work.
From experience, it turns out that these so-called “A-teamers” don’t really know how to execute campaigns, just saying.
In a big digital agency, the all-star team is usually reserved for the high paying clients; you know, the ones who are paying high 6 to 7 digit retainers. The other clients get to work with the junior staff — and that means sometimes new hires who are undergoing training. Yes, the smaller clients are used as “training ground.” How do you like them apples?
At Fullmoon Digital, we do have a small team. But we’re all marketing ninjas. We hire for experience, not benchwarmers. Do we provide training? Sure. But we also expect our pack to hit the ground running — that’s why we’re efficient and effective.
Final Word: A Big Digital Agency Is
Perhaps the most important takeaway from this article is that smaller agencies can deliver results just as good, if not better than the a big digital agency.
Brands should look for real relationships and foster long-term partnerships with an agency. Stop worrying about vanity like team sizes, fancy offices, big brand logos, and perks.
We are seeing large digital agencies acquiring small boutique agencies to service their larger clients. It’s also interested to note that these newly acquired firms aren’t even (fully) rebranded by the parent company in order to maintain the emphasis on their nimble and personal, hands-on approach.
Don’t go down the rabbit-hole of ticking all the boxes.
The right digital agency will be able to make a huge impact, while offering a long lasting partnership, regardless of their size.
