Embed Size (px)
Citation preview
FUTURELAB
Reconsidering the Advertising IndustryA Conversation Starter
© Lisovskaya | Dreamstime.com
Sponsored by
Management Centre Europe.
By: Alain Thys and Stefan Kolle
Prelude: Why This Document Exists
© Lisovskaya | Dreamstime.com
FUTURELAB
Comparative Estimates: US Total Media
Advertising Spending Growth, 2009
(% change vs prior year)
Wachovia: - 0.8%
BMO Capital Markets: - 1.9%
Collins Stewart LLC: - 2.0%
GroupM: - 3.2%
Citi Investment Research: - 3.6%
MAGNA: - 4.5%
Morgan Stanley: - 5.0%
ThinkPanmure LLC: - 5.0%
UBS: - 6.0%
ZenithOptimedia: - 6.2%
Myers Publishing LLC: - 6.7%
Barclays Capital: -10.0%
Source:
Seven Predictions for 2009, eMarketer, January 2009
automotiveadvertisingtelco
-6%
-21%
-48%
The Net Promoter Score ™ is a registered trademark of Bain, Satmetrix and Fred Reichheld
Net Promoter Score™ by Industry
Prelude: How will Agency’s Fare in a Market Where Clients are Dissatisfied?
© S
toc
kp
ho
ton
yc |
Dre
am
sti
me.c
om
FUTURELAB
Likelihood to recommendLow High
Lik
elih
ood to r
epurc
hase
Low
HighHostages Loyalists
Defectors Mercenaries
Prelude: Are Marketers Held Hostage by the Advertising Industry?
© A
lexe
y A
vd
ee
v |
Dre
am
sti
me.c
om
"
FUTURELAB
Prelude: Do Agencies Overestimate Their Impact on the Client’s Success?
© Chris Fourie | Dreamstime.com
FUTURELAB
Table of Contents
SITUATIONAL ANALYSIS: Agency Challenges 2009
12 REMEDIES: Setting Things Right
10 FORMATS: Agency Models of the Future
Page 7
Page 35
Page 48
Appendices for Digging Deeper Page 59
FUTURELAB
Chapter One
Situational Analysis: Agency Challenges 2009
FUTURELAB
Chapter One
Situational Analysis
7 client needs many
agencies ignore.
3 areas where agencies
are “out of synch”
4 gaps in agency
authenticity
FUTURELAB
Client Need #1: 75% of clients want a truly tailored approach to their business
© Frozenpeas | Dreamstime.comFUTURELAB
Agency Response #1: Services that Happen to Fit the Agency Model
FUTURELAB
Client Need #2: Show Me the Return on My Marketing Investments
© B
reeze393 |
Dre
am
stim
e.c
om
FUTURELAB
Agency Response #2: We Are Very Creative ... And Big ... And have Big Clients
© Robert Byron | Dreamstime.com
FUTURELAB
Client Need #3: Be A Trusted Media Partner
91% Consider the media buying
process to be insufficiently
transparent
Of the 50 largest advertisers in the world ...
85% Are convinced their media
agency had deals outside the
client agreement
74% Opined that these deals
caused bias in the choice of
media and recommendations.
FUTURELAB
Agency Response #3: Bad Apples
The Occasional
Scandal
Underperformance
and “creative math””
Continued
Intransparency
Image 1: CC 2.0: Phauly
Image 2: (c) Design 56 – Dreamstime.com
Image 3: (c) Aleksander Ruzicka
FUTURELAB
Client Need #4: Engage Our Audience
Image cc: Dogsbylori's - http://tinyurl.com/6658d7 FUTURELAB
Agency Response #4: Saturation Bombing
FUTURELAB
Client Need #5: Walk Digital
What marketing leaders want from their agencies when it comes to digital
FUTURELAB
Agency Response #5: Talk Digital
© Yuri Strakhov | Dreamstime.com
FUTURELAB
Client Need #6: Shopper Marketing
CAGR by Marketing Mix Element - Manufacturers
(2004-2010 Est.)
Source: Deloitte, 2007
FUTURELAB
Agency Response #6: Silo-based Thinking
© Phillip Minnis | Dreamstime.com
FUTURELAB
Client Need #7: Help me into the C-suite
FUTURELAB
Agency Response #7: Look How Cool and Fun We Are ... And Creative Too!
© Tomislav Birtic | Dreamstime.com
FUTURELAB
Chapter One
Situational Analysis
7 client needs many
agencies ignore.
3 areas where agencies
are “out of synch”
4 gaps in agency
authenticity
FUTURELAB
Kris Hoet, EMEA Digital Media Communications Manager, Microsoft
Agencies have optimised their business for themselves. Not for their customers.
Disconnect 1: Most Large Agencies are Mass Production Factories…
© Leigh Prather | Dreamstime.com
FUTURELAB
… While The World Needs Multi-Disciplinary Boutiques
© Iphotoexpert | Dreamstime.com
Agencies need to be chameleons which can become
what ever the client requires them to be.
Not just what they happen to be good at.
FUTURELAB
Disconnect 2: Most Agencies are Multi-Local with High Levels of Duplication ...
Creative
Production
Account
Mgmt
Planning
Digital
Management
© Michael Brown| Dreamstime.com
FUTURELAB
... While Today’s World is Global and Highly Interconnected
© Hewlett Packard, Halo Room
FUTURELAB
Disconnect 3: Agencies Compete within “Their Crowd” ...
© Julien Tromeur | Dreamstime.com
FUTURELAB
... While the Competition is Transforming
© Kevin Renes | Dreamstime.com
FUTURELAB
Chapter One
Situational Analysis
7 client needs many
agencies ignore.
3 areas where agencies
are “out of synch”
4 gaps in agency
authenticity
FUTURELAB
Authenticity Gap 1: Diffuse Identity
© Eric Marechal | Dreamstime.com
FUTURELAB
Authenticity Gap 2: Oversensitivity to Trends
FUTURELAB
Authenticity Gap 3: Undue Compliance
“We knew that it wouldn’t work, but the
client wanted it. So we made it happen.
After all, under all the gloss, we must
accept that we are prostitutes.”
Head of Business Development commenting on
modifications to a global campaign you know.
© Jose Antonio Sánchez Reyes | Dreamstime.com
FUTURELAB
Authenticity Gap 4: Occasionally Questionable Motivations
“I don’t care about making money for my clients. I just want
another award before I jump this ship. ”
Agency CEO of a A-list mediterranean agency
“Listen, we know that spending x million in above won’t fix the
issue, but they’re going to spend it anyway. We can just as well try
to grab as much as possible.”
Pitch team on an international account
If a client thinks a brand is great, but you find out his consumers
disagree, you’d only tell him if you’d get more business out it.
Otherwise, best to leave these things untouched.
Major agency creative director instructing a recent recruit over lunch
© S
teve
Cukro
v |
Dre
am
stim
e.c
om
FUTURELAB
12 Remedies to Set Things Right
1. Become a solution house ...
2. ... Or Not
3. Talk Money
4. Media Neutrality & Transparency
5. Replace Noise by Engagement
6. Be Digital
7. Think of the Shopper
8. Get a Makeover
9. Synch to Global Reality
10. Establish A Clear & Differentiated Position
11. Align Good Apples, Get Rid of Bad Ones
12. Take a Moment of Self-Reflection
Chapter Two
FUTURELAB
#1 Become a Solutions House ...
“Our recommendation is not to proceed with any
above-the-line campaign in the coming year.
In stead, it is better to upgrade call-centre training
and accellerate the go-to-market processes so
they co-incide with the consumer shopping cycle.
Obviously we are happy to assist in these areas.”
© J
an P
rchal | D
ream
stim
e.c
om
FUTURELAB
#2 ... or not
© In
fom
ag
es | D
ream
sti
me.c
om
© Lisa F. Young | Dreamstime.com FUTURELAB
#3 Talk Money
© B
reeze
39
3 |
Dre
am
stim
e.c
om
FUTURELAB
#4 Media Neutrality and Transparency
© N
ob50 | D
ream
stim
e.c
om
FUTURELAB
©i Dan Breckwoldt | Dreamstime.com
#5 Replace Noise by Engagement
FUTURELAB
#6 Be Digital
© S
pa
ce
he
ate
r | D
rea
mstim
e.c
om
FUTURELAB
#7 Think of the Shopper
©i Edyta Pawlowska | Dreamstime.com
FUTURELAB
#8 Get a Makeover
© Rebecca Abell | Dreamstime.com
FUTURELAB
#9 Synch to Global Reality
Image: (c) Sebast1an – Dreamstime.com
FUTURELAB
#10 Establish A Clear and Differentiated Position
FUTURELAB
#11 Align Good Apples, Get Rid of Bad Ones
(c) This framework is property of Management Centre Europe – used with permission
Customer
Proposition
Behaviour of
Leaders
Processes &
Structures
Performance
Metrics
Strategy
CommitmentCulture
FUTURELAB
#12 Take a Moment of Self-Reflection
© P
avala
che S
telia
n | D
ream
stim
e.c
om
FUTURELAB
10 Formats: Agency Models of the Future
Chapter Three
FUTURELAB
#1 The Factory
© S
edam
35 | D
ream
stim
e.c
om
FUTURELAB
#2 The Category Killer A: Media
© Info
kus408 | D
ream
stim
e.c
om
FUTURELAB
#3 The Category Killer B: Curated Creative Marketplaces
© R
ui V
ale
de S
ousa | D
ream
stim
e.c
om
FUTURELAB
#4 The Category Killer C: Production Machines
© Richard Thomas | Dreamstime.com
FUTURELAB
#5 The Customer Specialist
FUTURELAB
#6 The Serial Monogamist
FUTURELAB
#7 The Marketing & Communication Boutique
© H
eld
er
Alm
eid
a| D
ream
stim
e.c
om
FUTURELAB
#8 The Craftsman
© S
ebastia
n C
zapnik
| D
ream
stim
e.c
om
FUTURELAB
#9 The Fragmented Giant
FUTURELAB
#10 The Persistent One
© Drx| Dreamstime.com
FUTURELAB
Appendices for Digging Deeper
FUTURELAB
Must-read information for every agency executive.
• Forrester Research: Help Wanted: 21st Century Agency ($ 279 at www.forrester.com)
• Rainmaker Consulting: The Intelligent New Business Survey (free at
http://tinyurl.com/59dkff)
• Agency Search – What Matters? Winning Strategies for Ad Agencies – presentation ,
MillWard Brown, April 2007 (free at: http://tinyurl.com/5hhh7e)
• Henry Jenkins, Convergence Culture, NYU Press, 2006
• The full version of this report which can be purchased on
www.futurelab.net/agencyreport (€499 + VAT)
FUTURELAB
More Information & Action
If you want more information on this report or would like to discuss the
pursuit of any of the strategies discussed in your agency, get in touch
with us on [email protected]:
International: + 32 2 733 8332 Alain Thys/Stefan Kolle
Athens: +30 210 6101240 Milton Papadakis
Bucharest: +40 751 229 217 Ramona Patrascanu
Hamburg: +49 40 2780 6223 Anne Marx
Kiev: +38 067 502 99 41 Olga Vaganova
Moscow: +7 905 500 5856 Marina Natanova
Shanghai: +86 136 2179 9450 Jan Van den Bergh
For a conversation on aligning the people in
your agency to your strategy, get in touch
with Management Centre Europe who have
acted as co-sponsor to this report:
Mr. Patrick Faniel
Customer Specific Solutions Director
Tel.: +32/2/543.21.20
Email: [email protected]
FUTURELAB
WWW.FUTURELAB.NET - BLOG.FUTURELAB.NET - 100.FUTURELAB.NET - PROBES.FUTURELAB.NET
About Futurelab and This Report
FUTURELAB
