Brands are increasingly turning to their agencies for guidance on adapting to the digital age. However, these very agencies are also grappling with the seismic shifts brought about by digital transformation. A recent study by Harmelin Media and a team from the University of Michigan delved into how communication agencies can best adapt to emerging technologies. 

According to London-based digital agency Elsewhen: "Crafting software is among the most intricate tasks we undertake. It demands extensive collaboration across diverse disciplines and perspectives. A standout product combines strategy, data, empathy, communication, and a touch of luck."

We're all aware of how digital technologies have revolutionised the branding landscape. To stay afloat, businesses must swiftly adapt to the rapid rise of e-commerce, video streaming, influencer networks, AI-driven interfaces, evolving privacy mandates, and countless other facets of the digital revolution. Communication agencies are no exception. The digital shift presents a slew of new demands and challenges that traditional agency models struggle to address.

In partnership with Harmelin Media, the Stephen M. Ross School of Business at the University of Michigan embarked on a study to understand how the agency model has been reshaped by the digital revolution and what agencies can do to stay competitive as the marketing and media landscape continues to evolve.

Talent: The Heart of the Matter One of the standout findings centred on the seemingly straightforward process of hiring. Recruiting and retaining top talent is paramount for any agency, especially in an era where digital behaviours shift at breakneck speed. For Harmelin, it's crucial to onboard individuals who not only grasp data, technology, and the digital milieu but also possess distinct personality traits.

Harmelin's staff turnover is a mere third of the industry average, with an average employee tenure of 6.4 years, according to LinkedIn data. Among various hiring strategies, the agency has found success in recruiting individuals with an insatiable curiosity.

As digital platforms are in constant flux, hiring individuals open to change and eager to learn is a winning strategy for communication agencies. Moreover, agencies must champion talent development through training and empowerment, instilling confidence in clients about their adaptability and ability to seize emerging opportunities.

Embracing Flexibility The digital transformation also presents growth opportunities for agencies by broadening the scope of client contracts. Traditional agency contracts meticulously detail the agency's remit. However, given the ever-changing demands of the digital age, future contracts will need to be more agile, eliminating the need for constant addendums with every scope change. Scott Davis, Chief Revenue Officer at Harmelin, advocates for contracts tied to the value delivered by the agency. This approach ensures agencies have the leeway to expand their remit in line with digital advancements, rather than revisiting contracts each time their services evolve.

In conclusion, communication agencies must evolve in tandem with digital technology to position themselves as knowledgeable and strategic partners in the eyes of their clients. This involves recruiting and nurturing top talent, forging transparent collaborations, prioritising flexibility in contracts, and leveraging internal tools that enhance speed and efficiency. The key to long-term agency success lies in embracing digital transformation and pioneering new business models.