4A's Transformation 2014 - March 17 - Marc deSwaan Arons, CEO, Effective Brands
Post on 14-Sep-2014
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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
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
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
Strategy Structure Capabilities
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%
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
No meaningful differences between how small versus large agencies are responding
49
25
51
3835
50
0
20
40
60
Strategy Structure Capabilities
Small Creative Agency Large Creative Agency
*Top 2 boxes - % who responded “more radical/radical”
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%
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
What does It Take to Win?
3-Year Revenue Growth
Validation
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
Over-performers Rest
MORE responsive to Trends
*Top 2 boxes - % who responded “more radical/radical”
66
5264
41
26
47
20
40
60
80
Strategy Structure Capabilities
Over-performers Rest
LESS Focused on Measurement & ROI
45
54
20
40
60
Increased focus on measurement, ROI, and demonstrating
the value of ideas
Over-performers Rest
LESS Focused on Budget Restrictions
14
20
0
20
40
Budget restrictions, cost-cutting
Over-performers Rest
So …. What does It Take to Win?
Marketing2020 Effectiveness Framework
Big Insights
Purposeful Positioning
Total Experience
The ‘WHAT’
Big Insights
Purposeful Positioning
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
Purposeful Positioning
Total Experience
Big Insights
Purposeful Positioning
Total Experience
Big Insights
Purposeful Positioning
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
Our agency has the right data and analytics
available to measure effectiveness
Big data will help demonstrate the value of
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
Our agency has sufficient capability in data analysis and
analytics
Over-performers Rest
Over-performers Excel
60
54
40
47
0
20
40
60
Our agency has the right data and analytics
available to measure effectiveness
Big data will help demonstrate the value of
creative ideas
Over-performers Rest
Size Matters
30
44 45
59
20
40
60
Our agency has sufficient capability in data analysis and
analytics
0-49 FTE 50-130 FTE 131-490 FTE >491 FTE
Purposeful Positioning
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
Over-performers Rest
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
Purposeful Positioning
Total Experience
The ‘HOW’
Organizing for Growth
Connect
Big Insights
Purposeful Positioning
Total Experience
Agencies Going from Silos…Big Insights
Purposeful Positioning
Total Experience
Agency
Lead
Client
Lead
Creative
Board
Finance
Planning
Integration
R&D
Executives
Finance
Marketing
Digital
To Connected NetworksBig Insights
Purposeful Positioning
Total Experience
Account
Manager
Client
Contact
Creative
Board
Finance
Planning
Digital
R&D
Executives
Finance
Marketing
Digital
Inspire
Big Insights
Purposeful Positioning
Total Experience
71
32
0
20
40
60
80
We ensure that all employees are fully engaged with our purpose
Over-performers Rest
Instead of Celebrating What We Do … Big Insights
Purposeful Positioning
Total Experience
Ideas Storytelling Great Content
Celebrating What We do for the WorldBig Insights
Purposeful Positioning
Total Experience
SimplifyingAccessSelf-Esteem
SharedMetrics
Big Insights
Purposeful Positioning
Total Experience
Over-Performers: New MetricsBig Insights
Purposeful Positioning
Total Experience
54
42
15
35
55
Consumer Engagement
Over-performers Rest
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
Creative agency Media agency
Organize
Big Insights
Purposeful Positioning
Total Experience
Winning Clients are Collaborating with More AgenciesBig Insights
Purposeful Positioning
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
Purposeful Positioning
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
Over-performers Rest
Big Insights
Purposeful Positioning
Total Experience
From P&L SilosBig Insights
Purposeful Positioning
Total Experience
To Networked CollaborationBig Insights
Purposeful Positioning
Total Experience
Garage
Team Mazda
Colgate
Red Fuse
Team Detroit
Team Nestle
Big Insights
Purposeful Positioning
Total Experience
Let’s Talk MillennialsBig Insights
Purposeful Positioning
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
Our agency is successfully
attracting, developing, and
retaining Millennials
Creative Media
60
44
10
30
50
70
Our agency is successfully
attracting, developing, and
retaining Millennials
Large Creative Agency
Small Creative Agency
Over-Performers Win with MillennialsBig Insights
Purposeful Positioning
Total Experience
70
49
30
50
70
Our agency is successfully attracting, developing, and
retaining Millennials
Over-performers Rest
Millennial Motivators
Big Insights
Purposeful Positioning
Total Experience
Mentorship
Collaboration
Balance
• Transparency
Big Insights
Purposeful Positioning
Total Experience
PurposeBig Insights
Purposeful Positioning
Total Experience
Millennial De-Motivators
Big Insights
Purposeful Positioning
Total Experience
Hierarchy
Rigidity
The Accepted Path
• The Excel Effect
Big Insights
Purposeful Positioning
Total Experience
Clear Career PathsBig Insights
Purposeful Positioning
Total Experience
75
64
40
60
80
There is a clear career path for me
Over-performers Rest
* % Fully agree/ agree
Build
Big Insights
Purposeful Positioning
Total Experience
Agencies Feel Equipped – Clients Not Convinced
42
23
10
30
50
Current Capability vs. 5 year Requirements
Agency Client
Big Insights
Purposeful Positioning
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
Purposeful Positioning
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%
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
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%
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
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
Over-performers Rest
Big Insights
Purposeful Positioning
Total Experience
Over-Performers train more
46
29
0
20
40
60
% who receive >3 days of training per year
Over-performers Rest
Big Insights
Purposeful Positioning
Total Experience
… and better
60
48
20
40
60
% who rate quality of training program >6 (scale of
1-10)
Over-performers Rest
Big Insights
Purposeful Positioning
Total Experience
Agency2020 Effectiveness
Big Insights
Purposeful Positioning
Total Experience
What can you doTomorrow?
Winning in 2020 … or 2015
Big Insights
Purposeful Positioning
Total Experience
Lead by Example
71
49
30
50
70
Our agency's senior management sufficently
understand social and digital marketing
Over-performers Rest
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
marc@effectivebrands.com
@mdeswaanarons
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