Differentiating design and branding agencies in the post-purpose era.

I have recently stopped to think about the world of branding and design agencies, the work we do and the value we deliver. We’ve come a long way since corporate branding established itself as a practice. The landscape has adapted to globalisation, digitalisation, omni-channel-isation, sustainability-isation, purpose-ification. More recently it has been figuring out how to handle AI.

The agency market has expanded, with more design and branding studios offering a similar range of services. So, what does this mean for agency differentiation, and the way we communicate our value to clients, hires, and the market as a whole?

There are agencies out there positioned around a particular industry (tech) or service (packaging). They know it in and out; they evolve their offer to meet the demands of the respective field.

Elsewhere, some studios are positioned beyond industries, services, and trends, continuing to deliver value around the enduring need of keeping things simple – or human. Good call, because they can provide unique points of view into the meaning, incorporation, or lack thereof – of every shift and trend that comes their way.

Agencies that delivered value by specifically developing purpose-led brands peaked on each side of the pandemic. Their number has since decreased.

Many agencies now focus on developing brands that transform, navigate change, forge new directions – for them, people, and the planet. It’s the next station from purpose; more functional, pragmatic, down-to-earth. It’s also, as mentioned, where a decent number of the largest network and independent design and branding agencies out there now seem to live.

I don’t regret moving away from brand purpose as a value proposition and differentiating point for agencies, or brands – not because it’s not a valid brand building tool, but because not every brand needs purpose to justify its existence or differentiate. Many would be just fine if they used the traditional brand mission and vision to communicate what they’re about.

It’s already complex enough to build a mission-led business and brand – plan well, stay consistent and execute over time just to keep it afloat and grow. Amplifying the additional layer of purpose, requiring an operating model aligned to the greater good, may not work for that particular business. And that doesn’t make it bad – it might just mean they’ve figured out what works to their advantage and what doesn’t.

One of the greatest strengths in branding is aligning the organisation and brand to shared objectives, so they amplify each other. That alignment is especially critical for purpose-led organisations and brands, which are meant to represent next-gen planning, impact, and comms. If the way of operating does not align to and amplify the idea of purpose, the concept itself loses its meaning.

Based on this, it makes little sense for agencies to bank their entire offer on the concept of purpose. Where does the departure from it leave the world of agencies, market standout and value creation?

My wish is that it will enable them to deliver competitive advantage through authentic, pragmatic, and results-oriented branding and services. That it will lead to studios that stand out through unique points of view, impactful strategic and creative work, and original teams. That are truer to themselves – versus following a trend.

Where does that leave us in terms of market standout and differentiation at the moment? A subject for another time.

Unmistakably,

Irina.