The Agencies' Role in Product Development

    September 2, 2024|
    Media-Advertising Industry
    Author:

    TL;DR

    • Media agencies are trusted advisors across the full advertising technology lifecycle, not just campaign execution.
    • A structured, five-stage product development process helps agencies identify and implement the right solutions for brand marketing goals.
    • Stages include ideation, product definition, partner selection, proof of concept, and scaling.
    • Side-by-side platform evaluation and formal POC testing reduce risk and improve decision quality.
    • Agencies that build product development capability deliver greater business value beyond day-to-day operations.

    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 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 the Problem to Solve

    The first step in developing a solution is to clearly define the problem being addressed. In this ideation phase, agencies 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.

    Key inputs during ideation include:

    • Stakeholder interviews and business objective mapping
    • Evaluation criteria defined before any solution is considered
    • Use case exploration across relevant audience segments
    • Engagement with key market participants and platform partners

    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 an existing process? At this stage, the goal is to formalise the structure of the solution and articulate its value proposition.

    It is 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 the solution addresses the original business problem.

    Key questions that guide a robust value proposition:

    • Has the solution created operational efficiencies?
    • Has it improved the brand's marketing capabilities?
    • Has it enabled strategies that were previously unattainable?
    Strong product definition and a clear value proposition are the foundation of successful adtech implementation. Without them, even technically sound solutions risk failing to deliver measurable business impact.

    Solution Development and Partner Selection

    With parameters for success and the intended resolution in place, the next step is to finalise solution selection or establish formal steps and processes. When selecting a technology partner, such as a DSP, CDP, or other advertising stack element, agencies should create a formalised evaluation process with prospective partners.

    This process should include:

    • Transparent evaluation criteria shared with all prospective partners
    • Clearly defined expected outcomes before the evaluation begins
    • Participation requirements during the evaluation or trial period
    • A side-by-side comparison that allows issues to be resolved as they arise

    Though time-consuming, side-by-side platform evaluation is beneficial. This approach enables more nuanced comparisons beyond specific evaluation criteria and provides a holistic understanding of the market landscape, offering opportunities to reassess the 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 the solution 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 is 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 is 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. The 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.

    The Evolving Mandate for Media Agencies

    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 must be approached with due diligence to ensure success.

    Reach out to your ADMATICian to find out more about how we can help.

    Frequently Asked Questions

    Media agencies act as trusted advisors across the full advertising technology lifecycle. They connect brands with platforms, publishers, media, and data to achieve communication goals. Beyond campaign execution, agencies identify opportunities to optimise a brand's marketing technology stack, guiding product development from ideation through to scaling. Media agencies bring ecosystem-wide knowledge that most individual brands cannot replicate internally. This positions agencies to evaluate DSPs, CDPs, and other advertising stack elements with an objectivity and breadth of experience that accelerates decision-making and reduces costly implementation errors. The five-stage product management process, adapted from frameworks outlined by Asana and McKinsey, gives agencies a structured methodology for doing this systematically.

    A media agency should define the problem through a structured ideation phase. This involves gathering stakeholder input, establishing evaluation criteria, exploring potential use cases, and engaging key market participants. The output is a market brief or set of guidelines. McKinsey's emphasis on product-market fit highlights the importance of understanding the market before committing to any solution. Skipping this step is one of the most common reasons adtech implementations underdeliver. Without a clearly defined problem, agencies risk recommending solutions that are technically capable but misaligned with business objectives. The ideation phase should produce documented outputs, not just internal alignment, ensuring that all stakeholders are evaluating potential solutions against the same criteria throughout the process.

    A formal partner evaluation process should include transparent evaluation criteria, clearly defined expected outcomes, and participation requirements for each prospective partner during the trial period. Side-by-side platform testing is recommended, enabling dynamic issue resolution and nuanced comparisons that go beyond a checklist of features. Side-by-side evaluation takes more time upfront but significantly reduces risk downstream. When agencies run concurrent tests across two or more DSPs or CDPs, they surface integration issues, data discrepancies, and workflow friction that would not appear in a vendor demo or written proposal. This process also gives agencies a clearer picture of the market landscape, which can reveal whether the originally scoped solution is still the right one.

    A proof of concept tests the feasibility of a solution before significant investment is made. It stress-tests potential issues and provides a real-life example of implementation. A POC also surfaces internal implications, such as workflow complexity and team onboarding requirements, that become more difficult to address once a solution is deployed at scale. The POC stage is where value propositions meet operational reality. A solution that performs well in evaluation may face unexpected friction when integrated with existing data infrastructure, reporting systems, or internal team workflows. Running a controlled POC allows agencies and brands to identify these gaps early, adjust the implementation approach, and build internal confidence before committing to full deployment.

    Success should be measured by the extent to which the solution addresses the original business problem, not just by product adoption rates. Key measures include whether the solution has created operational efficiencies, improved marketing capabilities, or enabled strategies that were previously unattainable. A formal timeline, rollout schedule, and milestone tracking process should be agreed upon with both internal and external stakeholders. Adoption metrics alone are a weak proxy for business impact. An agency-led product development process should establish baseline measurements during the ideation phase so that post-implementation results can be assessed against pre-defined benchmarks. Agencies should make partner support commitments a formal requirement during the evaluation and selection stages.

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