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I work for a brand, that intentionally doesn't work with agencies for this type of arrogance. Now I know for a fact that client side marketers are not perfect (FAR from it in many cases), but having worked both client and agency side, can tell you for a fact that agencies are more worried about taking the latest technology or buzzword, and force fitting it to a brand and the brand's respective consumer's behaviour.
Typical agency idea of consumer insight: "18 to 24 year olds love mobile, and 90% own iPhones. Let's make an Augmented reality app for iPhones".
If you look at the progress made by agencies and brands alike in the past 3 years, I'd say, without bias, that client side marketing has taken greater strides.
Agencies use 'consumer insight' and 'user experience' in pitching, but find they rarely actually employ them in ways to develop products and services that are ACTUALLY used by people every day.
If people feel compelled to write 'open letters' like this, at least be satisfactory with the output of not just your own agency, but those you pitch against week in week out too. Because from where I am standing...you and your peers all have some work to do.
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