The Agencies’ Role in Product Development

The Agencies’ Role in Product Development

02 September 2024 |

Media and Advertising Industry

Media agencies play a pivotal role in shaping business outcomes by aligning the right solutions within the advertising ecosystem. By connecting brands with platforms, publishers, media, and data, agencies help brands achieve their communication goals with their intended audiences.

Given this critical role, agencies should be trusted advisors not only during campaign planning and implementation but also in identifying opportunities that extend beyond day-to-day operations. With their comprehensive knowledge of the advertising ecosystem, agencies must exercise due diligence to ensure that a brand’s marketing toolkit or technology stack is optimised for its marketing goals.

An effective approach to identifying the optimal solution or stack element involves adapting the stages of product management as outlined by the collaboration platform Asana and guided by insights gathered from Mckinsey.


Ideation and Establishing Problem to Solve

The first step in developing a solution is to clearly define the problem you are addressing. In this ideation phase, you gather input from stakeholders, establish key evaluation criteria, explore potential use cases, and engage with key market participants. The output should be a market brief or a set of guidelines for evaluating the identified opportunities. McKinsey emphasises the importance of product-market fit, underscoring the need for a thorough understanding of the market before investing time in problem-solving.


Product Definition and Value Proposition

Once guidelines and inputs are established, the next stage involves defining the solution to the problem. Is it a technology solution or a change in the existing process? At this stage, the goal is to formalise the structure comprising the  solution and articulate its value proposition. It’s important to consider both internal and external stakeholders when developing the value proposition. The impact should be measured not just by product adoption but by the extent to which it addresses the original business problem. Has it created efficiencies? Improved marketing capabilities? Enabled strategies that were previously unattainable? These are the questions that guide the development of a robust value proposition.


Solution Development – Partner Selection

With the parameters for success and the intended resolution in place, the next step is to finalise the solution selection or establish formal steps and processes. When selecting a technology partner, such as a DSP, CDP, or other advertising stack elements, it’s advisable to create a formalised process with prospective partners. This process should include transparent evaluation criteria, expected outcomes, and participation requirements during the evaluation or trial period.

Though time-consuming, side-by-side evaluation of platforms or partners is beneficial. This approach allows for a dynamic process where issues can be resolved as they arise and enables more nuanced comparisons beyond specific evaluation criteria. It also provides a holistic understanding of the market landscape, offering opportunities to reassess your solution based on what is available.


Proof of Concept and Testing

Once the solution or partner technology is selected, the next stage is to develop a proof of concept (POC) or preliminary test. This stage sharpens the feasibility of the solution, stress-tests potential issues, and provides a real-life example of how it will be implemented. A POC is crucial for understanding whether the solution will meet its value proposition before making significant investments.

During this stage, it’s also important to consider the internal implications of the new solution. Addressing the complexities and nuances that internal teams may face as the solution scales is crucial for successful product delivery.


Formalisation of Process and Scaling

As the proof of concept proves successful, it’s time to revisit the original problem definition and prepare for scaling the solution. This involves ensuring the ability to monitor progress, measure success, address onboarding issues, and provide internal training and feedback. Your solution partner should be ready to offer support during the onboarding period and beyond.

A proper timeline and rollout schedule should be agreed upon with internal and external stakeholders. This ensures that key milestones are tracked, and any necessary adjustments to the implementation plan are made in a timely manner.

As advertising technology continues to evolve and become more complex, the role of media agencies must evolve accordingly. Developing the capability to launch technology solutions and processes that not only enhance the advertising ecosystem but also contribute to business objectives is a challenge worth undertaking. This process, however, must be approached with due diligence to ensure success.