This session, originally presented by C-4 Analytics on the Digital Dealer platform, addresses the enduring strategic conflict between traditional (creative) and digital (placement) agencies. The central argument is that the turf war between "art and copy" and "placement" is unnecessary and self-sabotaging: all advertising is now digital placement.
The core goal of this framework is to establish harmony and ensure that great art and great copy are delivered to the right person at the right time—a task that requires both agencies to be on the same page.
The Original Model: Success was built on Art, Copy, and Placement (the media buyer). Digital was initially viewed as a nerdy add-on that traditional agencies resisted.
The Digital Truth: Digital advertising is not a channel; it is the delivery mechanism for all advertising. Everything is digital placement. Print becomes text/image delivery; radio becomes streaming audio; TV becomes OTT/smart TV video.
The Problem: The traditional agency structure is preserved by allowing them to maintain control over the budget, even though 75% of the effort (targeting, bidding, conversion tracking, analytics) is now purely digital.
To achieve a profitable union (1+1=3), the roles must be broken down by core competency. The digital agency must lead the complex task of placement.
Role: The traditional agency's primary value proposition should be creating great art and copy. This is the creative, brand-defining work that resonates with the customer (e.g., filming the local spot that connects with the Moline market).
New Revenue Model: Agencies should be paid for their creative output via a royalty or fixed-fee model, not by embedded commissions on ad spend, as this fundamentally changes their motivation.
Role: The digital agency's primary value is placement. They apply the complex business rules: audience filters, conversion tracking, bid management (bidding 100 times a day), landing page creation, and ROI analysis.
Why It Must Be Digital: Digital expertise is required to efficiently target the 4-in-5 people who research and switch brands online. The digital team must ensure that the great creative is delivered only to in-market buyers via the most efficient digital channel (Spotify, Hulu, etc.), not broadcast to the entire DMA.
The Demarcation: The strategy that dictates brand positioning and messaging requires local expertise, which often lies with the local creative agency. However, the functional strategy of where, when, and to whom the ad is shown belongs to the digital agency.
The Best Strategy: Since the bulk of the effort and the potential for cost savings lies in the precise placement of the ad, the unconflicted digital agency should lead the overall strategy (the Agency of Record) and demand that the creative agency supply the content.
This model allows both partners to focus on what they do best, eliminating the destructive internal competition and driving maximum results for the dealership.
For a deeper dive into these topics and to hear directly from Rob Stoesser, Vice President of OEM, C-4 Analytics, watch the full webinar below.