In a bid to distance themselves from the traditional agency model—which is often bogged down by overhead, talent costs and time-based compensation—many shops are ditching the agency label and rebranding as consultancies, marketing accelerators or creative solutions companies.
This isn’t the first time agencies have reevaluated their nomenclature. In 2011, Ad Age published a story about how “agency” had become a bad word, fueled in part by acquisitive interest shifting away from services businesses. As a result, many companies decided to bill themselves as a “studio” or an “ideas company.”
Some executives attribute the recent shift to the baggage “agency” has accumulated over time. Steve Stoute, CEO and founder of Translation, said a proliferation of new shops, many of which are fixated on billing and require multiple people to solve one problem, has caused clients to view agencies as expenses rather than strategic investments.