As AI reshapes agency offerings, how can leaders avoid making the same classic mistakes that hamper differentiation?
Ad Age’s recent article ‘How agencies are rebranding around AI at Cannes’ raises some crucial questions that agencies need to answer fast to thrive in the new reality of AI.
Full of emotive phrases like “identity crisis”, “arms race” and “struggling”, it’s clear that agencies are indeed “feeling the pressure to prove their AI chops to clients.”
But let’s pause for a second and consider how best to do this. In particular, how can agencies avoid filling up their buzzword bingo card?
Positioning is not a differentiator
First up, let’s be clear on the focus. In this case, the examples given are around agency positioning. Let’s define this simply as the business your agency is in, like media, influencer or even – quelle horreur – advertising.
Once agencies start messing with this most basic descriptor, things get fuzzy. The holding company Havas is now an “AI-driven organisation fuelled by human ingenuity”. WPP Media is an “AI-powered media network”. And Monks is a “change agent.”
Like ‘teacher’, ‘lawyer’ or ‘artist’, your positioning is really just sign-posting. It’s not there to sell to clients – it’s there to orient them.
Prior to being global CEO of M+C Saatchi, Zaid Al-Qassab was a senior client-side marketer. On a panel in Cannes, in response to storied agency execs debating whether it was still okay to be an ‘advertising’ shop, he said – pardon my French – “Have you ever realised that you’re all just talking to yourself and no client gives a shit?” He continued, “Most clients call everything we do, even the potato farming, advertising.”
The source of differentiation
So if clients don’t notice all this self-conscious peacocking, how do agencies communicate differentiation, be that around AI or anything else?
Think of it this way – your positioning is what you are, but your proposition describes what you offer. The former tells clients they’re in the right room, the latter tells them whether they should care.
It helps to break propositions into two parts – an ownable audience and a problem you solve. You do something for someone. In fact, unless your agency offers all things to all people – and let’s hope it doesn’t – then really your proposition is just the most succinct distillation of your business strategy.
Now imagine if this client-centric statement of intent – beautifully articulated of course – was built from what was truly unique about your agency, like your experience, culture and beliefs. That’s a serious expression of difference.
Everything is proof of something
But hang on, you might think – when do you impress clients with just how ‘AI-powered’ you are? That comes next.
Once your proposition makes a clear promise of expertise, something magical happens – right-fit clients lean in and demand to know more. Revolutionary, I know. In which case, your next task is to offer proof.
Think of this as your ‘how’ or ‘reasons to believe’. Everything you say and do should substantiate your proposition. Every touchpoint is an opportunity to demonstrate your differentiation – from structures and processes, to products and pricing.
By appearing in context and expressed as benefits – as opposed to try-hard adjectives – your AI-powered capabilities now have purpose and gravitas.
Get clear and thrive
The blurring of positioning and proposition has been an agency blindspot for decades. Clients roll their eyes when they hear nonsense like ‘we’re the street culture agency’ or ‘the human potential agency’.
And even with a clear positioning, your proposition still needs to be ownable. It’s no good just re-articulating category truths like ‘inserting brands into culture’ or helping ‘ambitious clients’ create an ‘unfair share of attention’. A good tip here is to ask yourself ‘could the opposite ever be true?’ If not, head back to the drawing board.
Right now it probably feels like shouting about your AI chops is the difference between success and failure. It’s certainly an easy way to claim to be the cleverest kid in the playground. But ultimately, it’s what your clients actually get that really matters.
As the old saying goes, don’t tell you’re a comedian – or a laughter-powered joke creator – just make me laugh.
(This article was originally published on Ad Age)