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Agency 2020, unleashing the value of ideas Quantitative Results Discussion Report Presented at 4A's Transformation 2014
Citation preview
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 1Unleashing Global Marketing Potential™
V5 Revised 03/03/14
Quantitative Results Discussion March 6th 2014
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 2
Today’s Purpose
• Review of Quant results
– Trends
– Opportunities & Challenges
– Characteristics of Over-Performers
– Client - Agency differences
– Media - Creative Agency differences
– Different cuts (Size, Age, Affiliation)
• Identifying key insights
• Aligning on implications
• Next Steps
Aligning on Key insights
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 3Unleashing Global Marketing Potential™
Research Sources
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 4
Research Input
Creative
Client
Media
Other*
Qualitative Quantitative
*E.g., educational institutions, .com’s (Facebook, Twitter, Google, etc.)
Desktop Research
Creative
Client
Media
Other
US Respondent Distribution
• Audit of industry-relevant news coverage
• Sources incl. Adage, Adweek, WARC, HBR, etc.
• Deep dive into M2020 Research on client organizations
• 75 Vision Interviews with thought-leaders
• 34 Creative• 24 Media• 12 Client• 5 Other
• Incl. important sub-segments e.g., Millennial, Procurement
• 110 M2020 interviews with CMOs, CEOs, opinion Leaders
• 725 total completed survey• 409 agency• 247 client• 69 Other
• US data was used for analysis
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 5
In Vision Interviews, we spoke to Agency, Client, and Media Thought-Leaders…
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 6
Over 250 Marketing2020 CMO interviews
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 7
…from leading marketing organizations
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 8
Client Respondent Profile
Who did we talk to?
6%
19%
38%
38%
Years of professional work experience
<5 year
5-15 years
16-25 years
>25 years
3%
21%
3%
9%
4%
4%13%
3%
11%
5%
1%5%
20%
Type of industryMedia/Communications
Consumer Packaged Goods
Telecom/TV/Internet
Manufacturing
Transportation/Logistics
Retail
Healthcare
Nonprofit/Association
18%
45%
25%
13%
Current position
Board/EVP/SVP/ C-suite
VP/Director/ Head
Manager
Other
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 9
Overall Agency Respondent Profile
Who did we talk to?
5%
14%
34%
48%
Years of professional work experience
<5 year
5-15 years
16-25 years
>25 years
21%
42%
36%
2%
Type of agencyIndependent/ privatelyowned - single shareholder
Independent/ privatelyowned - multipleshareholder
Part of a holding company
Other
58%28%
8%6%
Current position
Board/EVP/SVP/ C-suite
VP/Director/ Head
Manager
Other
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 10
US Creative Agencies
Who participated?
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 11
Creative Agency Respondent Profile
68%
30%
2%
Type of Agency
Independent/privatelyowned
Part of holding
other 58%28%
7%7%
Current position
Board/EVP/SVP/ C-suite
VP/Director/ Head
Manager
Other
2% 2%
7%
37%
24%
9%
19%
Average rate of Revenue
Decline more than 20%per year
Decline between 20% and10% per year
Decline between 10% andflat per year
Growth between Flat and10% per year
Growth between 10% and20% per year
28%
26%
27%
18%
Size of Agency
0-49 FTE
50-130 FTE
131-490 FTE
491 FTE and more
6. 10.
27. 8.
Who did we talk to?
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 12
US Media Agencies
Who Participated?
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 13
Media Agency Respondent Profile
24%
76%
Type of Agency
Independent/privatelyowned
Part of holding
62%
24%
10%4%
Current position
Board/EVP/SVP/ C-suite
VP/Director/ Head
Manager
Other
2%
4%
34%
36%
4%
20%
Average rate of Revenue
Decline between 20% and10% per year
Decline between 10% andflat per year
Growth between Flat and10% per year
Growth between 10% and20% per year
Growth over 20% per year
4%
18%
10%
68%
Size of Agency
0-49 FTE
50-130 FTE
131-490 FTE
491 FTE and more
6. 10.
27. 8.
Who did we talk to?
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 14
We analyzed the Quant results from multiple perspectives
Data cuts performed
Performance
• “Over-performers” (revenue growth >10% last 3 years) vs “The Rest” (revenue growth <10%)
• “Over-performers” vs “Bottom 3” (revenue decline)
Type
• Agency vs Client
• Creative vs Media
Size
• Large Creative Agency (>191 FTE) vs Small Creative Agency (<55 FTE)
• FTE (0-49, 50-130, 131-490, >491)
Respondent Experience
• >15 years experience vs <15
Note: Other cuts (e.g., by region/location) have been explored, but have not been as discriminating
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 15
Young People
• Rising Stars in-depth interviews
• Extra online research
• Millennial in the Agency World
Who did we not talk to enough?And what did we do to compensate?
Global Agencies
• Online research
Under-performers
Over-Performers
17
Validation
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 18Unleashing Global Marketing Potential™
Industry Change DriversTrends
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 19
Change Drivers
1. Mega Trends
2. Client Trends (Marketing2020)
3. Agency Trends
Megatrendsthat challenge us all
Social marketing
Purposeful Marketing
Collaborating with Consumers
Globalization
Opportunity to influence business
Infobesity
Privacy risks
Organizational silos
Doing more with less
Touch point consistency
Ability to stay current
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 26
Many industry change drivers emerged from the Vision Interviews
Proliferation of Media
Rise of Procurement
Budgets
Super-Group Mergers
New Technology
In House Agencies
CMO Turnover
Crowd-sourcing
Big Data
Open Innovation
Social Media
Programmatic Media
Proliferation of idea
providers
New Platforms
Connected Consumers
Transparency
Millennials
Talent
Hispanics
Cultural Evolution
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 27
The top three trends Agreement
Agency Client
1
2
3
0 10 20 30 40 50 60
New providers of ideas (e.g., ideaboutiques, Facebook, Twitter)
Big data (e.g., media buying basedon big data)
Increased focus on measurement,ROI, and demonstrating the value
of Ideas50%
38%
31%
0 10 20 30 40 50 60
Big data (e.g., media buying basedon big data)
New providers of ideas (e.g., ideaboutiques, Facebook, Twitter)
Increased focus on measurement,ROI, and demonstrating the value
of ideas54%
44%
43%
Note: low base “Client” – conclusions are indicative
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 28
But Important differences too …
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
Increased focus on measurement, ROI and demonstrating the values of Ideas
Big Data (e.g. media buying based on big data)
New providers of ideas (e.g. Idea Boutiques, Facebook, Twitter)
Q1. What are the top 3 trends that you believe will impact the future role of agencies
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 29Unleashing Global Marketing Potential™
How are Agencies reacting?
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 30
Clients do not see agencies evolving as radically as agencies claim to be
3,4
2,8
49%
19%
20%
26%Stra
tegy
Mean% More Iterative/Iterative % More Radical/Radical
Agency
Client
3,1
2,7
35%
14%
27%
26%Stru
ctu
re Agency
Client
3,5
2,9
51%
26%
19%
23%
Cap
abili
tie
s
Agency
Client
Increased focus on measurement, ROI and demonstrating the values of IdeasIn reaction to this trend, please describe your agency’s response
2%
21%
3%
30%
2%
23%
NA
Q3
Q5
Q4
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 31
But clients do not see agencies evolving as radically as agencies claim to be
3,0
2,6
34%
17%
29%
31%Stra
tegy
Mean% More Iterative/Iterative % More Radical/Radical
Agency
Client
2,9
2,3
26%
6%
33%
34%Stru
ctu
re Agency
Client
3,2
2,7
40%
20%
24%
26%
Cap
abili
tie
s
Agency
Client
New providers of ideas (e.g. Idea Boutiques, Facebook, Twitter)In reaction to this trend, please describe your agency’s response
7%
29%
9%
34%
7%
31%
NA
Q3
Q5
Q4
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 32
But clients do not see agencies evolving as radically as agencies claim to be
3,1
3,2
40%
35%
29%
24%Stra
tegy
Mean% More Iterative/Iterative % More Radical/Radical
Agency
Client
3,0
2,8
36%
21%
31%
27%Stru
ctu
re Agency
Client
3,2
3,1
45%
35%
23%
27%
Cap
abili
tie
s
Agency
Client
Big Data (e.g. media buying based on big data)In reaction to this trend, please describe your agency’s response
5%
24%
6%
38%
5%
24%
NA
Q3
Q5
Q4
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 33
Trends – Independent vs Holding
3,5
3,4
51%
46%
20%
19%Stra
tegy
Mean% More Iterative/Iterative % More Radical/Radical
Independent
Part of holding
3,1
3,4
34%
39%
29%
20%Stru
ctu
re Independent
Part of holding
3,5
3,5
52%
50%
17%
20%
Cap
abili
tie
s
Independent
Part of holding
Increased focus on measurement, ROI and demonstrating the values of IdeasIn reaction to this trend, please describe your agency’s response
2%
1%
4%
6%
2%
1%
NA
Q3
Q5
Q4
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 34
There were no “wow” differences when comparing trends from small vs. big creative agency
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%
Increased focus on measurement, ROI and demonstrating the value of ideas
New providers of ideas (e.g. Idea Boutiques, Crowdsourcing, Facebook, Twitter)
Convergence of idea providers - 'everybody doing everything'
Big Data (e.g. media buying based on big data)
Collaboration - within and across the agency, and inter-agency
Insights that drive creation of messaging and ideas
New agency revenue streams (e.g., New Products, Experiences, Cultures)
Generation Y - Millennials as employees, recruiters and idea generators
The commoditization of creativity
Budget restrictions, cost-cutting
The power of procurement
Agency and network mergers
The rise or changing role of In-house agencies
Small Creative Agency Large Creative Agency
Q1. What are the top 3 trends that you believe will impact the future role of agencies
* Only US data Based on the scores of the Creative agencies
No significance testing completed – advise if you need
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 35
Cut Small vs Big Creative agency
3,4
3,2
49%
38%
18%
21%
Mean% More Iterative/Iterative % More Radical/Radical
3
3,1
25%
35%
35%
29%
3,5
3,4
51%
50%
15%
23%
Increased focus on measurement, ROI and demonstrating the values of IdeasIn reaction to this trend, please describe your agency’s response
0%
10%
0%
6%
0%
2%
NA
Q3
Q5
Q4
Stra
tegy
Stru
ctu
reC
apab
iliti
es
Small Creative Agency
Large Creative Agency
Small Creative Agency
Large Creative Agency
Small Creative Agency
Large Creative Agency
Note: very low base “Small” & “Large” – do not make hard conclusions
No big differencesNo big differences
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 36
More than any other, Media agencies fully recognize the importance and impact of Big Data and new revenue streams
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%
Increased focus on measurement, ROI and demonstrating the value of ideas
New providers of ideas (e.g. Idea Boutiques, Crowdsourcing, Facebook, Twitter)
Big Data (e.g. media buying based on big data)
Convergence of idea providers - 'everybody doing everything'
New agency revenue streams (e.g., New Products, Experiences, Cultures)
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
Creative agency Media agency
Q1. What are the top 3 trends that you believe will impact the future role of agencies
Note: very low base ‘Media agency’ do not make hard conclusions
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 37
Media agencies are more focused on new revenue streams than creative agencies…
Zooming in on top 3 trends
Creative
0 20 40 60
Big Data (e.g., mediabuying based on big
data)
New providers of ideas(e.g., idea boutiques,
crowdsourcing,Facebook, Twitter)
Increased focus onmeasurement, ROI, anddemonstrating the value
of ideas
49%
33%
33%
1
2
3
Media
0 20 40 60 80
New agency revenuestreams (e.g., new
products, experiences,cultures)
Increased focus onmeasurement, ROI, anddemonstrating the value
of ideas
Big Data (e.g., mediabuying based on big
data)68%
38%
60%
Q1. What are the top 3 trends that you believe will impact the future role of agencies
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 38
Media agencies are more aligned with over-performers…
Focus on new revenue streams is the difference
1
2
3
Media
0 20 40 60 80
New agency revenuestreams (e.g., new
products, experiences,cultures)
Increased focus onmeasurement, ROI, anddemonstrating the value
of ideas
Big Data (e.g., mediabuying based on big data) 68%
38%
60%
Over-performers
0 20 40 60
New agency revenuestreams (e.g., new
productes,experiences,
cultures)
Big data (e.g., mediabuying based on big
data)
Increased focus onmeasurement, ROI,and demonstratingthe value of Ideas
45%
35%
36%
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 39
0 20 40 60
New providers of ideas(e.g., Idea Boutiques,
Crowdsourcing, Facebook,Twitter)
Big data (e.g., mediabuying based on big data)
Increased focus onmeasurement, ROI, anddemonstrating the value
of Ideas
54%
31%
38%
…whereas creative agencies are more aligned with the “rest”
More focused on the competition, not developing their own capability
Creative
0 20 40 60
Big Data (e.g., mediabuying based on big
data)
New providers of ideas(e.g., idea boutiques,
crowdsourcing,Facebook, Twitter)
Increased focus onmeasurement, ROI, anddemonstrating the value
of ideas
49%
33%
33%
1
2
3
45%
35%
36%
Rest
Unleashing Global Marketing Potential™
footer text to be changed in Slide Master • Page 40Unleashing Global Marketing Potential™
A2020 Over-PerformersWhat makes them winners?
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 41
Who are the Over-performers?
Over-performers self-reported revenue growth >10% in last 3 years
25%
27%26%
22%
Size of the Agency
0-49 FTE
50-130 FTE
131-490 FTE
491 FTE and more
84%
16%
Agency offering
Creative Agency
Media Agency
70%
29%
2%Type of Agency
Independent/privatelyowned
Part of holding
other
0-49 FTE n=3150-130 FTE n=34131-490 FTE n=33491 FTE and more n=27
Creative Agency n=105Media Agency n=20
Independent/privately owned n= 87Part of holding n=36 Other n=2
Only US data
n=125
7. 6.
8.
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 42
Over-performers are more focused on new revenue streams than new providers of ideas
Less looking at the competition, more evolving the company
45%
36%
35%
30%
28%
26%
22%
18%
14%
14%
14%
11%
6%
54%
38%
24%
31%
20%
28%
23%
19%
18%
20%
11%
10%
5%
Increased focus on measurement, ROI and demonstrating the value of ideas
Big Data (e.g. media buying based on big data)
New agency revenue streams (e.g., New Products, Experiences, Cultures)
New providers of ideas (e.g. Idea Boutiques, Crowdsourcing, Facebook, Twitter)
Collaboration - within and across the agency, and inter-agency
Convergence of idea providers - 'everybody doing everything'
Insights that drive creation of messaging and ideas
Generation Y - Millennials as employees, recruiters and idea generators
The commoditization of creativity
Budget restrictions, cost-cutting
The power of procurement
The rise or changing role of In-house agencies
Agency and network mergers
Over-performers Rest
Increased focus on measurement, ROI and demonstrating the values of Ideas
Big Data (e.g. media buying based on big data
New agency revenue streams (e.g., New Products, Experiences, Cultures)
What are the top 3 trends that you believe will impact the future role of agencies
**
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 43
Across the board, over-performers are evolving more radically in response to trends
3,7
3,2
66%
41%
14%
24%Stra
tegy
Mean% More Iterative/Iterative % More Radical/Radical
Over-perform
Rest
3,4
2,9
52%
26%
21%
35%Stru
ctu
re Over-perform
Rest
3,7
3,3
64%
47%
14%
24%
Cap
abili
tie
s
Over-perform
Rest
Increased focus on measurement, ROI and demonstrating the values of IdeasIn reaction to this trend, please describe your agency’s response
0%
1%
0%
1%
0%
0%
NA
Note: low base both groups – results are indicative
Q3
Q5
Q4
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 44
Across the board, over-performers are evolving more radically in response to trends
3,5
2,9
51%
32%
18%
38%Stra
tegy
% More Iterative/Iterative % More Radical/Radical
Over-perform
Rest
3,2
2,8
42%
32%
24%
40%Stru
ctu
re Over-perform
Rest
3,5
3,0
56%
37%
18%
29%
Cap
abili
tie
s
Over-perform
Rest
Big Data (e.g. media buying based on big data)In reaction to this trend, please describe your agency’s response
4%
4%
4%
4%
4%
4%
Mean
NA
Q3
Q5
Q4
Note: low base both groups – results are indicative
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 45
Across the board, over-performers are evolving more radically in response to trends
3,7
3,5
61%
54%
11%
21%Stra
tegy
% More Iterative/Iterative % More Radical/Radical
Over-perform
Rest
3,3
3,1
48%
33%
25%
30%Stru
ctu
re Over-perform
Rest
3,7
3,4
64%
44%
16%
16%
Cap
abili
tie
s
Over-perform
Rest
New agency revenue streams (e.g., New Products, Experiences, Cultures)In reaction to this trend, please describe your agency’s response
0%
2%
0%
2%
0%
2%
Mean
NA
Large gaps across all
three measures
Q3
Q5
Q4
Note: low base both groups – results are indicative
Big Insights
Purposeful Positioning
Total Experience
Harvesting learning and leveraging skills
Building understanding and interdependent mindset
Energizing passion around the brand vision
Aligning strategy, targets and rewards
Creating structure and roles and responsibilities and aligning behavior
Drivers of Global Marketing Effectiveness
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 47Unleashing Global Marketing Potential™
Big InsightsBig Insights
Purposeful Positioning
Total Experience
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 48
Clients doubt that agencies have the right data and analytics available
48% 49%45%
35%
60%54%
0%
20%
40%
60%
80%
100%
Our agency has the right data and analyticsavailable to measure effectiveness
Big data will help demonstrate the value ofcreative ideas
We have a structural approach in place totrack brand equity
Agency Client
% Strongly agree & Agree
Q7. Q8. Q9. Q10.
Note: low base “Client” – results are indicative
***
* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 49
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%
80%
100%
Our agency has the right data and analytics available to measureeffectiveness
Big data will help demonstrate the value of creative ideas
Creative Media agency
Note: very low base ‘Media agency’ do not make hard conclusions
% Strongly agree & Agree
Q7 Q8
**
* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)
**
1 2 3
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 50
Smaller creative agencies feel less equipped than larger creative agencies
Q7.
Small creative agencies feel
even less equipped
37%
50%
0%
20%
40%
60%
80%
100%
Our agency has the right data and analytics available to measure effectiveness
Small Creative Agency
Large Creative Agency % Strongly agree & Agree
*
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 51
On all capability measures the agency rates itself higher than rated by clients
Agency Egos
45%
58%
35%41%
0%
20%
40%
60%
80%
100%
Our agency has sufficient capability in data analysis and analytics Our agency’s senior management sufficiently understands social and digital marketing
Agency Client
Q26. Q25.
Note: low base, conclusions ‘Client’ are indicative
Agency Leadership
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 52
Bigger agencies have more sufficient capabilities in data and analytics than smaller agencies
30%
44%45%
59%
0%
20%
40%
60%
80%
100%
Our agency has sufficient capability in data analysis and analytics
0-49 FTE 50-130 FTE 131-490 FTE >491 FTE
Note: low base, conclusions of all ‘FTE groups’ are indicative
Q26.
% Agree
**4
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
**4 **2, 4
**4
1 2 3 4
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 53
Media agencies have the edge over creative when it comes to data
41%
66%
0%
20%
40%
60%
80%
100%
Our agency has sufficient capability in data analysis and analytics
Creative agency Media agency
Note: low base “Media”, do not make hard conclusions
% Agree
Q25 Q26
* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)
**
Unleashing Global Marketing Potential™
footer text to be changed in Slide Master • Page 54Unleashing Global Marketing Potential™
A2020 Over-PerformersWhat makes them winners?
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 55
Over-performing agencies have more developed capabilities in Social and Big Data
55%
34%
0%
20%
40%
60%
80%
100%
Our agency has sufficient capability in data analysis and analytics
Over-performers Rest
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 56
Zooming in:Over-performers vs Bottom 3
55%
34%
0%
20%
40%
60%
80%
100%
Our agency has sufficient capability in data analysis and analytics
Over-performers Bottom 3
Note: very low base both groups – no hard conclusions
Note: Even though significant, no hard conclusions due to low base
when over vs bottom 3
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 57
Over-performers are confident that big data is well integrated at their agency
60%
49%
10%
54%
40%45%
15%
47%
0%
20%
40%
60%
80%
100%
Our agency has the right dataand analytics available to
measure effectiveness
We have a structural approachin place to track brand equity
I personally think that data andKPI driven thinking is the enemy
of creativity in marketing
Big data will help demonstratethe value of creative ideas
Overperformers Rest
% Strongly agree & Agree
All embrace big data – not the enemy of creativity
Q7. Q8.
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 58
Zooming in:Over-performers vs Bottom 3
0 10 20 30 40 50 60 70 80 90 100
Overperformers
Bottom 3
54%
41%
Note: very low base both groups –no hard conclusions
Q7 Our agency has the right data and analytics available to measure effectiveness
0 10 20 30 40 50 60 70 80 90 100
Overperformers
Bottom 3
Q8 Big data will help demonstrate the value of creative ideas
% Strongly agree & Agree
% Strongly agree & Agree
60%
39%
54%
34%
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
**
**
Unleashing Global Marketing Potential™
footer text to be changed in Slide Master • Page 59
Big data is more integrated in the over-performing agencies
60%
49%
10%
54%
40%45%
15%
47%
0%
20%
40%
60%
80%
100%
Our agency has the right dataand analytics available to
measure effectiveness
We have a structural approachin place to track brand equity
I personally think that data andKPI driven thinking is the enemy
of creativity in marketing
Big data will help demonstratethe value of creative ideas
Overperformers Rest
% Strongly agree & Agree Only US data Based on the scores of the agenciesThe “unknown” category is excluded (n=71)
Overperformers n=125Rest n=177
Q7 Q9 Q10 Q8
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 60Unleashing Global Marketing Potential™
Purposeful PositioningBig Insights
Purposeful Positioning
Total Experience
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 61
Clients feel more purposeful
49%
71%
0%
20%
40%
60%
80%
100%
The positioning of the brand or organization I work with is societally purposeful
Agency Client
% Strongly agree & Agree • Only US data • Based on the scores of the Agencies & Clients• The “other” category is excluded (n=38)
Q14
Note: low base “Client” – results are indicative
* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 62
Clients do not perceive agencies as having clear positioning…
75%
46%
0%
20%
40%
60%
80%
100%
Our agency has a clear positioning
Agency Client
% Strongly agree & Agree • Only US data • Based on the scores of the Agencies & Clients• The “other” category is excluded (n=38)
Q12
Note: low base “Client” – results are indicative
* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 63
Or having a societal purpose…
51%
38%
0%
20%
40%
60%
80%
100%
The positioning of our agency is societally purposeful
Agency Client
% Strongly agree & Agree • Only US data • Based on the scores of the Agencies & Clients• The “other” category is excluded (n=38)
Q13
Note: low base “Client” – results are indicative
* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)
**
Unleashing Global Marketing Potential™
footer text to be changed in Slide Master • Page 64
On all positioning measures, “winners” over-perform the less performing companies
79%
57%53%
71%72%
48% 46%52%
0%
20%
40%
60%
80%
100%
Our agency has a clearpositioning
The positioning of our agency issocietally purposeful
The positioning of the brand ororganization I work with is
societally purposeful
We ensure that all employeesare fully engaged with our
purpose
Overperformers Rest
Q12 Q13 Q14 Q15
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 65
Zooming in:Over-performers vs Bottom 3
79%
61%
0%
20%
40%
60%
80%
100%
Our agency has a clear positioning
Over-performers Bottom 3
Note: very low base both groups –no hard conclusions
% Strongly agree & Agree
Q12
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 66
Zooming in:Over-performers vs Bottom 3
57%
39%
0%
20%
40%
60%
80%
100%
The positioning of our agency is societally purposeful
Over-performers Bottom 3
Note: very low base both groups –no hard conclusions
% Strongly agree & Agree
Q13
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
*
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 67
Zooming in:Over-performers vs Bottom 3
71.00%
32.00%
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
We ensure that all employees are fully engaged with our purpose
Over-performers Bottom 3
Note: very low base both groups –no hard conclusions
% Strongly agree & Agree
Q15
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 68Unleashing Global Marketing Potential™
Total ExperienceBig Insights
Purposeful Positioning
Total Experience
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 69
Bigger agencies sense the agency’s role generalizing more than smaller agencies
30%
44%
62%65%
0%
20%
40%
60%
80%
100%
Agency roles will generalize towards everybody doing everything
0-49 FTE 50-130 FTE 131-490 FTE >491 FTE
Note: low base – all ‘FTE groups’ – results are indicative
% Strongly agree & Agree
Q16 Q17
1 2 3 4
* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)
**2, 4**3
HOW:
Organizing for Growth
Big Insights
Purposeful Positioning
Total Experience
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 71
This necessitates moving from a “bowtie” to “diamond” model
• Traditional, transactional approach• One point of contact between
company and stakeholder• Functional silos
• Collaborative, team approach• Many points of contact between
company and stakeholder• Networked – cross-functional
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 72
For example, as in…
Account Manager
ClientContact
Account team
Planning team
Creative
Finance
Production
Digital
Marketing
R&D
Executives
Finance
Account Manager
ClientContact
Account team
Planning team
Creative
Finance
Production
Digital
Marketing
R&D
Executives
Finance
From…
To…
Silo’d
Transactional
Collaborative
Networked
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 73Unleashing Global Marketing Potential™
Inspire
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 74
Clients and Agencies equally engage with employees
60% 61%
0%
20%
40%
60%
80%
100%
We ensure that all employees are fully engaged with our purpose
Agency Client
% Strongly agree & Agree • Only US data • Based on the scores of the Agencies & Clients• The “other” category is excluded (n=38)
Q15
Note: low base “Client” – results are indicative
* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 75
So let’s back up: how inspiring is the industry?
• McCann presented “The Truth About Advertising” at last years 4A’s Transformation
• Widespread quant/qual survey that included industry and consumers
• High-level compare/contrast on how “inspiring” the industry – killer findings include:
– 70% of people in industry think “the best is behind us”
– 56% of people in advertising think that industry people wish they were doing something more creative
– 80% of people in advertising think advertising is a “sink or swim” environment
– 57% of industry folks think the industry has a problem attracting/retaining talent
– 69% of consumers think advertising has the power to change the world (!)
Killer findings from McCann’s presentation at last year’s Transformation
See complete findings inside Desk Research Reader under “Inspire”
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 76
Agencies’ missions celebrate “what we do” –rather than celebrating “what the world can do”
To help the next generation of women develop a positive
relationship with the way they look – helping them raise their
self-esteem and realize their full potential
To give people the power to share and make the world more
open and connected
To create the world’s most compelling content – through a relentless focus on the work, the
work, the work
To bring inspiration and innovation to every athlete in
the world* (*if you have a body, you have an athlete)
To organize the world’s information and make it
universally accessible and useful
To redefine how stories can be told across brand, digital, and
commerce
To refresh the world, to inspire moments of optimism and
happiness, to create value and make a difference
To give everyone the power to create and share ideas and
information instantly, without barrier
To be the best creator of ideas that truly move people – bar none
To create a better everyday life for the many people
To be Earth’s most customer-centric company, where
customers can find and discover anything they might want to buy
online
To create the most meaningful brand connections with the lives of
people everywhere
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 77Unleashing Global Marketing Potential™
Focus
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 78
Agencies and clients are generally well aligned when it comes to the best measures
0 10 20 30 40 50
Client Brand Awareness
Client sales or profit levels
Consumer Engagment
0 10 20 30 40 50 60
Client Market Share
Brand Equity / Health
Client sales or profit levels
Client Brand Awareness
Consumer Engagement
AgencyClient
1
2
3
1
2
3
47%
36%
33%
48%
36%
29%
29%
29%
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 79
For over-performers, consumer engagement and sales best capture the value of the agency
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
Consumer engagement
Client sales or profit levels
Client Revenue Growth
Q6. Which 3 measures or metrics best capture the value of the ideas that agencies create for brands?
* Only US dataBased on the scores of the agenciesThe “unknown” category is excluded (n=71) Over-performers n=125
Rest n=177
Total experience
Over- are more focused on client revenue growth
**
**
* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 80
Over-performers are using “new” metrics
Zooming in on capabilities
54%
34%
27%
26%
12%
42%
29%
32%
37%
16%
Consumer engagement
Client Revenue Growth
Brand Equity / Health
Client Brand Awareness
Buzz/ Advocacy
Overperformers Rest
Q6. Which 3 measures or metrics best capture the value of the ideas that agencies create for brands?
* Only US dataBased on the scores of the agenciesThe “unknown” category is excluded (n=71) Over-performers n=125
Rest n=177
Engagement, revenue growth, and innovation are
more “new” metrics
Brand equity, awareness, and buzz, are more
traditional
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 81
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
Creative agency Media agency
Measurement – creative versus media
Q6. Which 3 measures or metrics best capture the value of the ideas that agencies create for brands?
Note: very low base ‘Media agency’ do not make hard conclusions
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 82Unleashing Global Marketing Potential™
Organize
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 83
Lack of clarity around roles and responsibilities is a major issue
34%
45%
32%
41%38% 38%
0%
10%
20%
30%
40%
50%
60%
70%
80%
It is fully clear to everybody whereindividual responsibilities start and end
within the agency
It is fully clear to everybody whereindividual responsibilities start and end
between the agency and the client
It is fully clear to everybody whereindividual responsibilities start and endbetween our agency and other agencies
working on the same brief/ client
Agency Client
Agency thinks roles between agency-client are more clear than the client
Client thinks roles between multiple agencies are more
clear than the agency
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 84
Even for over-performers, huge opportunity to create clarity around roles and responsibilities
36%
50%
39%34%
43%
27%
0%
20%
40%
60%
80%
100%
It is fully clear to everybody whereindividual responsibilities start and end
within the agency
It is fully clear to everybody whereindividual responsibilities start and end
between the agency and the client
It is fully clear to everybody whereindividual responsibilities start and endbetween our agency and other agencies
working on the same brief/ client
Overperformers Rest
% Agree * Only US data (& only M2020 US data)Based on the scores of the agenciesThe “unknown” category is excluded (n=71)
Structure is more clear for over-, but even the
winners haven’t cracked it
Importance of clarity in partnerships – role of client to
define roles/responsibilities
Q20 Q21 Q22
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 85
Where do agencies stand when it comes to Millennials?
Significant differences across three dimensions
Q24 Our Agency is successfully attracting, developing, and retaining Millennials
0
10
20
30
40
50
60
70
80
90
100
% Agree/Strongly Agree
Large CreativeAgency
Small CreativeAgency
0
10
20
30
40
50
60
70
80
90
100
% Agree/Strongly Agree
Creative
Media
0
10
20
30
40
50
60
70
80
90
100
% Agree/Strongly Agree
Agency
Client
56%
28%
55%62% 60%
44%
Large more appealingMedia has
edge
** ** **
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 86
Over-performing agencies more successfully attract, develop, and retain Millennials
70%
49%
0%
20%
40%
60%
80%
100%
Our agency is successfully attracting, developing and retaining Millennials
Overperformers Rest
% Strongly agree & Agree
Q24
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 87
Q27 There is a clear career path for me
Employees at over-performing agencies see a more clear career path…
Fully agree /Agree
Neutral
Disagree/ fullyDisagree
Over-performers
11%
15%
75%
Fully agree /Agree
Netural
Disagree /Stronglydisagree
Rest
64%
21%
15%
** (Fully agree)
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 88Unleashing Global Marketing Potential™
Build
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 89
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
Data analysis and analytics
Branded content creation
Mobile
Q28. Which of the following capabilities will become more important for your agency in the next 5 years?
Agencies more focused on big data
– maybe clients aren’t sure yet if
agencies will play a role
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 90
The top three capabilities differ from the client and agency perspective
Both are focused on data as a trend – so could it be that Clients are not yet convinced that agencies will play a role?
0 20 40 60 80 100
Mobile
Branded Content Creation
Data analysis and analytics
0 20 40 60 80 100
Branded Content Creation
Consumer/Customer Engagement
Mobile 61%
60%
51%
77%
54%
52%
Agency Client
Q28. Which of the following capabilities will become more important for your agency in the next 5 years?
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 91
Over-performers are combining data analytics with consumer understanding to get to Big Insights
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%
Data analysis and analytics
Consumer understanding & insights
Branded content creation
Mobile
Consumer/customer engagement
Digital and Social Media advertising
Big creative idea development
Brand strategy
Consumer/customer touch point planning
Product or service innovation
New business model development
Brand positioning
Shopper marketing/Retail experience
Apps creation (e.g. native advertising)
Public relations/Crisis Management
Advergaming
Other
Overperformers Rest
Data analysis and analytics
Consumer understanding & insights
Branded content creation
Q28 Which of the following capabilities will become more important for your agency in the next 5 years?
All understand importance of big data, but
over- are focused on big
insights
Innovation more important
for over-
Over- have moved beyond focusing on mobile and digital/social – it’s
just the way things are
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 92
Results indicate that Media agencies may be focusing on different capabilites than Creative agencies
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%
Data analysis and analytics
Branded content creation
Mobile
Digital and Social Media advertising
Consumer/customer engagement
Consumer understanding & insights
Big creative idea development
Brand strategy
Consumer/customer touch point planning
New business model development
Brand positioning
Product or service innovation
Apps creation (e.g. native advertising)
Shopper marketing/Retail experience
Public relations/Crisis Management
Advergaming
Other
Creative agency Media agency
Q28. Which of the following capabilities will become more important for your agency in the next 5 years?
Old school capabilities
New school capabilities Data
Insights
Note: very low base ‘Media agency’ do not make hard conclusions
Awaiting significance
testing
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 93
Media leadership is leading by example when it comes to social
55%
80%
0%
20%
40%
60%
80%
100%
Our agency's senior management sufficiently understands social & digital marketing
Creative agency Media agency
Note: low base “Media”, do not make hard conclusions
% Agree
Q25
Agency leadership
* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 94
Senior mgmt. at winning agencies better understand digital and social – leadership?
71%
49%
0%
20%
40%
60%
80%
100%
Our agency’s senior management sufficiently understands social and digital marketing
Over-performers Rest
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 95
Q24. Please score your agency’s capabilities versus the job requirements 5 years from now
42%
23%
%
20%
40%
60%
80%
100%
%Very Good & World Class
Agency Client
Clients are not entirely convinced of how equipped their agency is
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 96
Q24. Please score your agency’s capabilities versus the job requirements 5 years from now
54%
34%
%
20%
40%
60%
80%
100%
%Very Good & World Class
Overperformers Rest
Over-performing agencies feel better equipped for the future
**
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 97
And employees get more training …
Q30 How many days of training do you receive on a regular basis?
More than 3days per year
Between 2-3days per year
Less than 2 daysper year
No formaltraining
Over-performers
23%
13%46%
18%
More than 3days per year
Between 2-3days per year
Less than 2 daysper year
No formaltraining
Rest
29%
17%
29%
25%
** (>3 days)
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 98
…which they feel is of a higher quality
Q29 How would you rate the quality of your agency’s training program (1-10)?
6 and higher
5 and lower
Over-performers
40% 60%
Rest
29%
17%
29%
25%
6 and higher
5 and lower
52% 48%
** ( >6)
**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)
Unleashing Global Marketing Potential™
Agency2020 Initial Quant Debrief• Page 99
Thank you
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