4A's Transformation 2014 - March 17 - Marc deSwaan Arons, CEO, Effective Brands

Imagine 2020

Quite Close

Urbanization

Sustainability

Technology

•New economies

The Marketing World

Speed

Transparency

Transparency

GenerationWHY

NGOs

WHAT we do has changed dramatically

HOW we are organized has not

http://www.google.nl/url?sa=i&rct=j&q=&source=images&cd=&cad=rja&docid=uOw64fJkIo5T5M&tbnid=wyRPNPJpXHojAM:&ved=0CAUQjRw&url=http://www.markettools.com/&ei=z6W6UZ_ICsGXtAaM14DYAQ&bvm=bv.47883778,d.Yms&psig=AFQjCNGakfP7135xkvkJcRD8dCJupp96pQ&ust=1371273028610305


250 CEOs and CMOs in 10 markets

10,231 marketing participants from 92 countries

Client

Opportunities & Challenges

Marketing2020

Collaborating for New Solutions

Social

Globalization

•Purpose

Opportunity to Influence

Doing More with Less

Privacy

Touch-Point Consistency

•Internal Silos

Infobesity

Personally Staying Current

Marketing / Agency Roles

Global ConsumersPartnersLocal Agencies

Unleashing the value of Agencies as Idea Generating

Intermediaries

Agency2020

- Strategy- Structure- Capability

Agency2020

Vision Interviews with 75 Thought-Leaders

Michael Wege

CMO

The Hershey Company

Clients

Partners

Patrick Harris

Director, Global Agency Development

Facebook

Susan Credle

Chief Creative Officer

Leo Burnett Worldwide

Creative Agencies

Rob Norman

Chief Digital Officer Global

GroupM

Media Agencies

Jenny Hoffman

Manager, Agency Development

MEC

Agency Millennials

MaryAnn Brennan

Senior Director, Global Procurement

Mattel

Procurement

Online Survey: 725 Respondents

Agency Profile

Independent Part of Holding Other

TypeWork Experience

<5 Year 5-15 Years 16-25 Years >25

Current Position

Board/EVP/SVP/C-Suite VP/Director/Head

Manager Other

The World according to

AGENCIES

Agency2020

Half Full or Half Empty?

Client Trust

Value of Creativity

Business Model

•New Solutions

Big Data

Programmatic Media

Technology

•Millennials

EmbracingChange

Agency & Client Agree on Top Trends …

5038

5443

0

20

40

60

Increased focus on

measurement, ROI, and

demonstrating the value of ideas

Big data (e.g., media buying

based on big data)

Agency Client

Top 3 trends that will impact the future role of agencies

50%

38%

31%

28%

27%

25%

25%

17%

17%

15%

11%

10%

6%

54%

43%

44%

3%

19%

23%

30%

11%

28%

14%

18%

10%

6%

Increased focus on measurement, ROI and demonstrating the value of ideas

Big Data (e.g. media buying based on big data)

New providers of ideas (e.g. Idea Boutiques, Crowdsourcing, Facebook, Twitter)

New agency revenue streams (e.g., New Products, Experiences, Cultures)

Convergence of idea providers - 'everybody doing everything'

Collaboration - within and across the agency, and inter-agency

Insights that drive creation of messaging and ideas

Generation Y - Millennials as employees, recruiters and idea generators

Budget restrictions, cost-cutting

The commoditization of creativity

The rise or changing role of In-house agencies

The power of procurement

Agency and network mergers

Agency Client

… But not on Level of Agency Response

49

35

51

19

14

26

0

20

40

60

Strategy Structure Capabilities

Agency Client*Top 2 boxes - % who responded “more radical/radical”

No meaningful differences between how Independent vs. Holding are responding

51

34

52

46

39

50

0

20

40

60


Independent Part of Holding

*Top 2 boxes - % who responded “more radical/radical”

Agency size was not a driver when it comes to top trends

51%

33%

25%

28%

29%

27%

27%

19%

17%

17%

6%

5%

18%

49%

33%

31%

31%

28%

24%

23%

17%

16%

16%

13%

12%

7%














Small Creative Agency Large Creative Agency

No meaningful differences between how small versus large agencies are responding

49

25

51

3835

50

0

20

40

60


Small Creative Agency Large Creative Agency


Media agencies are more focused on measurement and big data than creative agencies

49%

33%

33%

27%

27%

26%

26%

17%

17%

17%

12%

9%

6%

60%

12%

68%

28%

38%

16%

16%

18%

20%

2%

0%

18%

4%














Creative agency Media agency

What does It Take to Win?

3-Year Revenue Growth

Validation

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http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=T2hAYWXkQLorVM&tbnid=fOvfWnz8uUdnCM:&ved=0CAUQjRw&url=http://logobytes.com/york-university-logo.html&ei=Np88Us7QLpHSrQfDn4DIBw&bvm=bv.52434380,d.bmk&psig=AFQjCNHaYj6ZMBJFlphAkVIyXPLTlm3yzw&ust=1379791027628006

Over-Performers

MORE Focused on New Agency Revenue Streams

35%

24%

0%

20%

40%

60%

New agency revenue streams (e.g. experiences)

Over-performers Rest

MORE focused on Collaboration

28

20

0

20

40

Collaboration - within and across the agency, and inter-

agency


MORE responsive to Trends


66

5264

41

26

47

20

40

60

80



LESS Focused on Measurement & ROI

45

54

20

40

60

Increased focus on measurement, ROI, and demonstrating

the value of ideas


LESS Focused on Budget Restrictions

14

20

0

20

40



So …. What does It Take to Win?



Marketing2020 Effectiveness Framework

Big Insights

Purposeful Positioning

Total Experience

The ‘WHAT’

Big Insights


Total Experience

Big Data

38

33

45

42

3032343638404244464850

We have right data and analytics available to

measure marketing effectiveness

We are able to leverage all data

and analytics available

to improve our marketing effectiveness

Underperform Overperform

Big Insights


Total Experience

Big Insights


Total Experience

Big Insights


Total Experience

Agency2020 ‘WHAT’

Agency2020

Big Insights

iIBig Insights

Client

Creative

Media

iIBig Insights

Client

Creative

Media

iIBig Insights

Client

Creative

Media

Big data is important, but what role will the agency play?

48 49

35

60

0

20

40

60

Our agency has the right data and analytics

available to meausre effectiveness

Big data will help demonstrate the value of

creative ideas

Agency Client

Media agencies are more confident in their ability to lead the way when it comes to data

45 46

68 68

0

20

40

60


available to measure effectiveness


creative ideas

Creative Media

Agencies Think They Get It … Clients aren’t so Sure

45

35

20

40

60

Our agency has sufficient capability in data analysis and

analytics

Agency Client

Media agencies think they have the edge

41

66

0

20

40

60

Our agency has sufficient capability in data analysis and analytics

Creative Media

NewCompetitors

Proving Value

Over-Performers Excel

**

55

34

20

40

60


analytics


Over-performers Excel

60

54

40

47

0

20

40

60


available to measure effectiveness


creative ideas


Size Matters

30

44 45

59

20

40

60


analytics

0-49 FTE 50-130 FTE 131-490 FTE >491 FTE


Clients Feel More Purposeful…

49

71

30

50

70

The positioning of the brand or organization I

work with is societally purposeful

Agency Client

IndustryReputation

Agency’s Positioning Misunderstood

75

46

20

40

60

80

Our agency has a clear positioning

Agency Client

Not clear that Agencies are purposeful

51

38

20

40

60

The positioning of our agency is societally purposeful

Agency Client

Again, Over-Performers Win

79

53

57

72

4648

20

40

60

80

Our agency has a clear positioning The positioning of the brand or organization I

work with is societally purposeful

The positioning of our agency is soceitally

purposeful


Total Experience

Size matters, again

30

44

6265

20

40

60

Agency roles will generalize toward everybody doing everything

0-49 FTE 50-130 FTE 131-490 FTE >491 FTE

DE

PT

HP

erso

nal

izat

ion

B R E A D T H# of Touch Points

© 2013 EffectiveBrands

Brand Value in a Digital Age

Clients Need Strategic Support …

… And are used to paying for it

$ $ $ $ $ $

Business Marketing Communication

Marketing2020 Effectiveness Framework

Big Insights


Total Experience

The ‘HOW’

Organizing for Growth

Connect

Big Insights


Total Experience

Agencies Going from Silos…Big Insights


Total Experience

Agency

Lead

Client

Lead

Creative

Board

Finance

Planning

Integration

R&D

Executives

Finance

Marketing

Digital

To Connected NetworksBig Insights


Total Experience

Account

Manager

Client

Contact

Creative

Board

Finance

Planning

Digital

R&D

Executives

Finance

Marketing

Digital

Inspire

Big Insights


Total Experience

71

32

0

20

40

60

80

We ensure that all employees are fully engaged with our purpose


Instead of Celebrating What We Do … Big Insights


Total Experience

Ideas Storytelling Great Content

Celebrating What We do for the WorldBig Insights


Total Experience

SimplifyingAccessSelf-Esteem

SharedMetrics

Big Insights


Total Experience

Over-Performers: New MetricsBig Insights


Total Experience

54

42

15

35

55

Consumer Engagement


Over-performers view of the best metrics

54%

37%

34%

27%

26%

24%

12%

10%

9%

9%

8%

6%

5%

5%

1%

0%

34%

42%

39%

29%

32%

37%

28%

16%

8%

9%

5%

7%

4%

5%

5%

1%

2%

33%

Consumer engagement

Client sales or profit levels

Client Revenue Growth

Brand Equity / Health

Client Brand Awareness

Client Market Share

Buzz/ Advocacy

Media planning & buying efficiencies and effectiveness

Brand Love

Share of Voice/ Experience

MROI

Creation of new products and services

Net Promoter Score (NPS)

Agency growth in terms of share, revenues and/or profit

Other

Creative Awards

It depends on the client/ brand's objectives

Overperformers Rest

Differences in metrics, creative versus media

46%

35%

34%

33%

28%

28%

14%

10%

7%

6%

6%

5%

5%

5%

2%

1%

37%

50%

22%

52%

32%

12%

30%

8%

8%

22%

8%

12%

0%

4%

6%

0%

2%

32%

Consumer engagement

Client Brand Awareness

Client sales or profit levels

Client Revenue Growth

Client Market Share

Brand Equity / Health

Buzz/ Advocacy

Brand Love

Media planning & buying efficiencies and effectiveness

Share of Voice/ Experience

MROI

Net Promoter Score (NPS)

Creation of new products and services

Agency growth in terms of share, revenues and/or profit

Creative Awards

Other

It depends on the client/ brand's objectives


Organize

Big Insights


Total Experience

Winning Clients are Collaborating with More AgenciesBig Insights


Total Experience

Source: Marketing2020 Data

55

33

0

20

40

60

% that works with more than 5 agencies

M2020 Over-performers M2020 Under-performers

Lack of Clarity on Roles is a Major Issue Challenge

34

45

32

41

38 38

20

40

60

Internal Agency Role Clarity Agency-Client Role Clarity Agency-Agency Role Clarity

Agency Client

Big Insights


Total Experience

Over-Performers are ahead, but there is room to improve

36

50

39

34

43

27

20

40

60

Internal Agency Role Clarity Agency-Client Role Clarity Agency-Agency Role Clarity


Big Insights


Total Experience

From P&L SilosBig Insights


Total Experience

To Networked CollaborationBig Insights


Total Experience

Garage

Team Mazda

Colgate

Red Fuse

Team Detroit

Team Nestle

Big Insights


Total Experience

Let’s Talk MillennialsBig Insights


Total Experience

Where do agencies stand when it comes to Millennials?

56

28

10

30

50

70

Our agency is successfully

attracting, developing, and

retaining Millennials

Agency Client

55

62

10

30

50

70




Creative Media

60

44

10

30

50

70




Large Creative Agency

Small Creative Agency

Over-Performers Win with MillennialsBig Insights


Total Experience

70

49

30

50

70

Our agency is successfully attracting, developing, and



Millennial Motivators

Big Insights


Total Experience

Mentorship

Collaboration

Balance

• Transparency

Big Insights


Total Experience

PurposeBig Insights


Total Experience

Millennial De-Motivators

Big Insights


Total Experience

Hierarchy

Rigidity

The Accepted Path

• The Excel Effect

Big Insights


Total Experience

Clear Career PathsBig Insights


Total Experience

75

64

40

60

80

There is a clear career path for me


* % Fully agree/ agree

Build

Big Insights


Total Experience

Agencies Feel Equipped – Clients Not Convinced

42

23

10

30

50

Current Capability vs. 5 year Requirements

Agency Client

Big Insights


Total Experience

There are Some Clear Areas to Focus on

54 5247

51

61

44

30

50

70

Branded Content Creation Mobile Digital and Social Media

Advertising

Agency Client

Big Insights


Total Experience

What are the capabilities for the future?

77%

54%

52%

47%

42%

40%

34%

31%

28%

24%

18%

15%

14%

13%

9%

1%

1%

48%

51%

61%

44%

40%

60%

35%

30%

33%

14%

14%

24%

15%

16%

10%

6%

0%

Data analysis and analytics

Branded content creation

Mobile

Digital and Social Media advertising

Consumer understanding & insights

Consumer/customer engagement

Big creative idea development

Brand strategy

Consumer/customer touch point planning

New business model development

Product or service innovation

Brand positioning

Shopper marketing/Retail experience

Apps creation (e.g. native advertising)

Public relations/Crisis Management

Advergaming

Other

Agency Client

Differences between capabilities that Media vs. Creative are focusing on?

75%

52%

49%

47%

42%

40%

37%

34%

27%

24%

17%

17%

14%

13%

10%

1%

1%

90%

62%

74%

44%

24%

58%

16%

12%

38%

26%

2%

24%

6%

20%

2%

0%

2%



Mobile





Brand strategy



Brand positioning





Advergaming

Other


What capabilities are over-performers focused on developing?

80%

53%

50%

48%

44%

43%

38%

30%

28%

22%

22%

16%

10%

9%

6%

1%

0%

76%

40%

56%

51%

41%

47%

33%

31%

29%

15%

23%

17%

16%

12%

11%

1%

1%




Mobile




Brand strategy




Brand positioning




Advergaming

Other

Overperformers Rest

Clients are not entirely convinced how equipped the agency is

42

23

0

20

40

60

% "very good/world class" agency capability vs. 5 year requirement

Agency Client

Over-Performers are More Equipped

54

34

0

20

40

60

% who rate agency's capability "very good/world" class

vs job requirement 5 years from now


Big Insights


Total Experience

Over-Performers train more

46

29

0

20

40

60

% who receive >3 days of training per year


Big Insights


Total Experience

… and better

60

48

20

40

60

% who rate quality of training program >6 (scale of

1-10)


Big Insights


Total Experience

Agency2020 Effectiveness

Big Insights


Total Experience

What can you doTomorrow?

Winning in 2020 … or 2015

Big Insights


Total Experience

Lead by Example

71

49

30

50

70

Our agency's senior management sufficently

understand social and digital marketing


Clients want agency leadership to step up their game

58

41

20

40

60

80

Our agency's senior management sufficently understand social and digital marketing

Agency Client

Media leadership is already doing it

55

80

40

60

80

100

Our agency's senior management sufficently understand social and digital marketing

Creative Media

ThinkIMIADA

Think Integration

Not Hand-Off

Think Holistic

Celebrate the Industry

Your Clients Need You

You Have the Talent

You have Proven Ability

You are Admired

69% of consumers think that

advertising has the power to

change the world*

Source: McCann “The Truth About Advertising” –Transformation 2013

You can Completethe Puzzle

So, … What’s Holding You Back?

Go for it!

Thank You

[email protected]

@mdeswaanarons