Being an ‘agency’ or ‘consultancy’ might feel like a vital debate, but this decision has little bearing on clients buying from you.
(This article was originally published by The Drum)
Every few years, the agency world finds itself drawn into the same debate – what should we call ourselves? The latest installment, sparked by Sam Anderson’s thoughtful series in The Drum, revisits the familiar tension between the usual suspects, like ‘agency’, ‘consultancy’ and ‘studio’, as well as the sexy new moniker on the block – ‘platform’.
It’s a timely challenge. The industry is evolving in meaningful ways, so it’s only natural to question whether the language we use is up to scratch.
That said, let’s maintain a sense of proportion. Agencies often waste literally years arguing about this stuff. So while this debate might feel like a zeitgeist-y identity crisis, it’s actually just a recurring distraction.
More importantly, it points to a deeper confusion. Agencies overestimate what positioning actually does, and underestimate what really drives client preference.
The impossible consensus
The first misstep is assuming that the word you use to categorise your business offers immediate meaning. But the problem with words is that they’re words – so they mean different things to different people.
Perhaps you’re convinced that ‘consultancy’ signals rigour and C-suite intent? Or ‘studio’ implies craft? Well, maybe. Unfortunately, these connotations vary dramatically – not just around the world, but also around your own boardroom table.
Others will argue that ‘studio’ sounds small and ‘consultancy’ feels divorced from making stuff. And around you go again. That’s another hour of your expensive away-day that you’ll never get back.
More to the point, clients really don’t care. So whether you’re an ‘agency’, ‘company’, ‘firm’ or whatever, just pick one and be done with it. And remember that calling your business a ‘platform’ doesn’t make it one. Your attributes aren’t demonstrated through labels, but through the client’s experience – from your culture and expertise, to commercials models and outcomes delivered.
Reframing positioning
On the subject of labels, the second misstep is imagining that your positioning statement acts as a magical intoxicant, enticing clients to succumb to its persuasive charm.
If only.
Think of your positioning as simply the field you’re in – like ‘doctor’ or ‘artist’. Specific enough to understand, but with plenty of room to add detail – from brain surgeon to portrait painter.
At the same time, too much detail doesn’t help. In our multidisciplinary, AI-enabled world, it’s tempting to throw everything you offer into the mix. But then your creds meetings take half a day.
Instead, just define your core discipline and move on. There’ll be plenty of opportunities to unpack all your other cool stuff later.
For now, it’s your proposition that really matters. But bizarrely agencies often use ‘positioning’ and ‘proposition’ interchangeably. And that’s not semantics – it’s a missed opportunity.
Signposting versus selling
Let’s define ‘proposition’ as the problem you solve – or outcome you deliver – for a specific, ownable audience. This isn’t packaging, it’s your fundamental business strategy.
Out there in the wild, your positioning comes first. It serves as signposting, not selling. You’re using familiar terms to tell the market what you are. Just your core discipline plus whatever descriptor you settled on.
Within that tidy framing, your clients are now primed to hear your proposition. It focuses on them, not you – offering clear guidance on where you fit into their priorities.
Ultimately, your positioning tells clients what you are, but your proposition tells them why they should care. When you deploy them both wisely, everyone benefits.
Substance not semantics
You might be thinking that this simplicity all sounds very nice in theory, but the world’s an increasingly complex place. Fair enough. The Drum’s series rightly points to the rapid evolution of traditional models. Thanks to AI shattering the tyranny of time and materials, agencies are – finally – becoming more focused, more productised, and more expansive in how they create value.
After all, AI isn’t about just ‘tools’ or ‘efficiency’, it’s a business model revolution. But that just strengthens the argument for client-centric clarity. In a turbulent world, simplicity wins.
Get clear, tell clients
Like ‘the broken pitch process’ and ‘indies vs. networks’, this language debate is one of our industry’s most beloved hardy perennials. And within it, the conflation of positioning and proposition has been tripping agencies up for years.
That’s why clients have to suffer made-up nonsense like ‘we’re the street culture agency’ or ‘the human potential company’ – neither are recognisable positionings nor meaningful propositions.
And once you have a sensible positioning, ensure your proposition isn’t just a category generic, like ‘inserting brands into culture’ or helping ‘ambitious clients’ create an ‘unfair share of attention’. As ever, asking yourself ‘could the opposite ever be true?’ is a vital sense-check.
All this boils down to strategic focus. Get clear about what you are, who you’re for, the problems you solve and the outcomes you create.
If you want to be an ‘agency’, that’s great. And if that grinds your gears, then choose something else. But whichever route you take, make the call quickly and move on.
You won’t win by tweaking low-level rhetoric. You’ll win by making yourself easy to buy.