The New Model for Marketing Agencies

In the world of digital marketing, agencies are the go-to experts for brands looking to amplify their reach and carve out their unique space in the market. Traditional marketing agencies have been structured in a way that prioritizes advice and earns their bread through production — be it ads, articles, videos, photos, or even full-fledged websites.

Today’s Marketing Agency

The organizational chart of a typical agency reflects a heavy emphasis on production. From content writers to video producers, a significant chunk of an agency’s staff is devoted to creating content. Why? Because content is king. It’s time-consuming, requires expertise, and is therefore expensive to produce. A considerable chunk of this content production is outsourced to external agencies or freelancers. This production-centric model is the bread and butter of many agencies.

But the AI wave is creating a need (and opportunity) for tremendous business model change. GenAI models cause the cost and skill barrier for content production — whether it’s text, videos, or images — to plummet. The search ecosystem is being disrupted by ChatGPT and the need for SEO work is diminishing.

This all points in one direction — the agency model needs to change.

The Original Thinker Marketer

From Kieran Flanagan’s (CMO at Zapier) insightful post on LinkedIn, it’s evident that generative AI is not just a passing trend. It’s a tidal wave set to redefine the very foundation of the marketing discipline.

“AI will make it easier to replicate marketing tactics. The value of original thinkers soars. That category will be quicker to adopt AI tools to make their work better.”

Agencies are filled with original thinkers — crafting brand strategies, campaign concepts, art direction, and more. And you’re looking at a future where those very skills will soon be overvalued.

Tomorrow’s Business Model

So is it all doom and gloom? Far from it. This change, while disruptive, is also an enormous opportunity. Marketing agencies are uniquely positioned to leverage this shift. Imagine a world where agencies create custom AI apps powered by their unique insights and original thought. These apps would not only reduce the production burden significantly but also turn into recurring revenue streams.

Think about it: agencies that excel in content strategy, brand creation, and ad campaigns can seamlessly integrate their expertise with bespoke AI apps. These apps can aid in production, and more importantly, agencies can charge Monthly Recurring Revenue (MRR) for them. It’s a win-win.

Custom AI Marketing Apps

What could these bespoke AI applications tailored specifically to meet the demands of their clients look like? Here are some AI marketing apps that agencies are ideally positioned to build and offer:

AI-Powered Content Generators

Say goodbye to hours spent brainstorming and drafting. These apps can produce high-quality blog posts, social media captions, and ad copies in minutes, all tailored to a brand’s voice, message, existing content, and more. By inputting a topic and desired tone, clients can have ready-to-publish content at their fingertips.

Chatbots and Customer Service AIs

Enhance user experience on websites with AI-driven chatbots. These bots can answer customer queries in real time based on rich knowledge bases and even gather data on user behavior, providing invaluable insights for future marketing strategies.

Predictive Analytics Tools

Using historical data, these apps can forecast sales, web traffic, and even predict upcoming trends. Marketing campaigns can thus be optimized for maximum ROI, ensuring that every penny spent is a penny well invested.

Visual Content Creators

Leveraging the capabilities of models like DALL-E 3, these apps can produce stunning visuals for ads, social media, or websites tailored to a brand’s aesthetics and art direction. Whether it’s a banner, logo, or an infographic, AI can craft it to perfection.

Personalization Engines

In a world where consumers expect tailored experiences, these apps analyze user data to offer personalized product recommendations, content, and even discounts, driving conversions and enhancing brand loyalty.

Social Media Insights Analyzer

By tapping into social media chatter, this app can gauge brand sentiment, track mentions, and even predict viral trends, enabling businesses to stay one step ahead in their social media game.

Not only do these apps streamline processes and increase efficiency, but they also open up new revenue streams, shifting agencies from a one-time project fee model to a sustainable subscription-based model.

Your Next Step? Databutton

The future of marketing agencies lies in marrying the power of AI with their strategic and creative prowess. And this isn’t just a distant dream. Products are already emerging that can help agencies pivot in this direction.

Databutton has razor sharp focus on lowering the barrier to create AI apps via conversational building. From ideation to deployment, every step can be achieved through a simple discussion. And when you need to tweak? A built-in code editor lets you fine-tune to perfection. The result? Deploying, distributing, and selling excellent AI apps to your customers.

In a future where AI is the game-changer, isn’t it time to change the game?

Sign up for Databutton and be the agency of the future, today.