Judges of the IAS Agency Credentials Award announced

A panel of respected judges will review all Credentials Award entries, which will consist of the agency’s written credentials document as well as the agency culture reel - within the various agency discipline types eg creative, digital, PR, media and design.

The judging panel will be made up of six seasoned and renowned Marketers from leading companies in South Africa – already judging the Assegai Awards - along with international and local intermediaries in the marketer/agency space including:

Cesar Vacchiano is the president and CEO of SCOPEN International  responsible for the international expansion of the group. He has developed projects in many countries, and SCOPEN now has offices in Spain, Portugal, UK, Brazil, Argentina, Chile, Colombia, Mexico, China, India, Singapore and South Africa.

SCOPEN provides knowledge and identifies demands and future trends for marketers, agencies and media owners. The company’ researches are focused on the communication, marketing and advertising changing environment. He is the only non-marketer member of the Directors Council in the Spanish Advertisers Association (AEA), Secretary of the Spanish Effectiveness Awards and member of the Jury in other Industry Awards and Festivals.

Nikki Munsie is Business Director of the Independent Agency Search and Selection Company (IAS).  Nikki has more than 25 years of experience in the marketing and advertising industry with the last 13 years being in a consulting role where she was involved in the development of Business and Brand Strategies with a strong emphasis on Cross Functional Action Learning for Clients.

Hlamazi Mabunda IAS Project Director for the Independent Agency Search and Selection Company (IAS).  Hlamazi is a AAA School of Advertising Integrated Marketing Communications graduate who works as a Project director with key responsibilities to include the streamlining of processes in order to make them more efficient.

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Agency Credentials: So much more than swagger

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Pitching takes energy

With new business opportunities on the increase, are agencies ready and willing to divert their energies into pitching? And if so – what new questions should they be asking of the marketers who approach them?

2020 saw a markedly reduced appetite among marketers for selecting new agency partners.  Our AGENCY SCOPE 2021 study in the UK saw a drop of almost 50% in cold calling during 2020 – the start of the pandemic.  Cold calls (calls from different agencies) to CMOs in the UK decreased from an average of 58 in 2018/19 to less than 37 in 2020. And success rates were even lower than in previous years.  

This formulated our view that during the pandemic, and with such levels of uncertainty, marketers preferred to limit their risks and stick with their agency partners until more certainty returned to the market.

In South Africa, the same trend happened – which we knew anecdotally from our own work within IAS – and we expect to see similar results for 2020 to the UK in the AGENCY SCOPE 2021 South Africa where results will be presented in the latter part of October 2021.  

During the first few months of 2021, new business activity was fairly muted, picked up in Quarter 2 with some interesting new pitches across different sectors coming into play.  Going into Quarter 3, we are seeing several enquiries and interest from marketers and we believe that marketers are now asking themselves if they do have the right agency partners in place for growth.  Having taken an understandably more conservative and cautious view in 2020, it seems that marketers are focusing on their new needs in order to grow their businesses and meet company targets.

With the above in mind we think that agencies – although always keen to be involved in pitches – are asking themselves a different question.  While always being intrigued, excited and delighted at the idea of new client opportunities, agencies are also dealing with less capacity than in previous years as a result of client budget cuts in 2020 and the resultant cut-backs in staff. This will result in agencies being less prone to jump into a pitch than before as they will need to evaluate a few things at the outset:

• Is this a genuine pitch opportunity that will result in an agency appointment and real revenue increase?

• Can we – as an agency – divert our teams off secure client business in order to pitch for new opportunities?

• What will the opportunity costs be – if we pitch or if we do not? There are implications either way.

• Are our teams resilient enough, following the hardships and sadness of COVID which has left many of us touched by the losses of family members and friends, to spend more time on chasing new client opportunities which may come to nothing?

• Has the potential client included an intermediary in the process – as this tends to indicate a genuine search process?

We all know that agencies love and thrive on the opportunities to work on new brands and business sectors, but we see too that energy on both client and agency side is in short supply.  Budgets notwithstanding, I do see the role that intermediaries have to play as being even more needed as both parties navigate their way through the new world that we are now in.   

Intermediaries are much more than pitch consultants – we play in a variety of ways in the space between marketers and their agencies and our advisory role has grown in the past 12 months in particular – and for both parties.

Before marketers invite agencies to pitch – which they will hopefully allow an intermediary to facilitate – the questions they should be asking themselves are:

• Do any of our existing agency partners have the capabilities that we are looking for to meet our new needs? Have we checked?

• What precisely are our new needs?

• How will we evaluate success if we appoint a new agency partner – and this follows on surely from why we wanted a review of our existing agency partners?

• Are we looking to cut costs or grow our business? Is this a procurement exercise or a genuine marketing need?

The average corporate in South Africa works with at least four different types of agency:  creative above line, digital performance and/or content, media and PR (corporate and brand).   And the need for specialist agencies is increasing – we hear more about intersection than integration these days.  Intersection is the “magic” that happens where marketers are working and encouraging their different agencies and work streams to collaborate.     

With many marketers now valuing their agency relationships more strongly than before, as a result of the closer partnerships created during the worst of the pandemic, there will need to be real reasons to change agencies than ever before. These reasons will need to be clearly articulated, with real briefs, from the outset by wise marketers and should result in solid new agency appointments – where and if needed.

Breadth of digital choices creating confusion

Among the first insights from ongoing fieldwork for Agency Scope South Africa 2021/2022 - the fourth edition of the biennial study that provides insights into current trends defining marketers' most pressing concerns and solutions - a particular and pervasive mood across the industry stands out.

The necessary changes imposed by the pandemic among marketing and creative agencies were acute and sometimes overwhelming. Suddenly, the essential topics became “agility”, “new normal” and “digital”. Adaptation and change was rapid, and one key – and unexpected - impact is “uncertainty”.

Our first glance at study responses indicates that many chief marketing officers (CMOs) are feeling uncertain when it comes to choices. Considerations around digital, the various platforms and channels and feeling like they can’t decide on a good media or digital plan because they simply don’t have enough in-depth knowledge, have CMOs feeling unsure.

Apprehension about being totally reliant on the agencies and a feeling that they can’t even really debate or argue with their agencies due to insufficient knowledge has left marketers less convinced of making the optimal decisions because they simply are not sure.

This reliance on their agencies, manifesting in a degree of uncertainty, appears to be growing as a topical marketing issue.

With so many platforms and channels in the mix and no time to have really gleaned enough knowledge of all of them means that marketers are even somewhat unsure of how to question or debate what their agencies are telling them.

In a sense, it’s this lack of clarity that is making marketers relook at their relationships with media agencies as they look for who can assist them, besides their creative agencies.

At first glance, I’d suggest that working from this platform of uncertainty will encourage greater collaboration by marketers with their media agencies because of the tools and information that those agencies have available. It’s a trend we have already seen take place in the UK, and could it be a sign of what’s to come in South Africa.

The media agency’s core function is to review all media options, and the CMO’s reliance will be on doing the job thoroughly, which will also include the many – and growing - digital media options.

Decrypting their uncertainty will likely mean marketers combining the guidance given to them by both media and creative agencies as they learn the ropes of the “now normal” world.

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AGENCY SCOPE SA: Responding to industry desire to raise the bar

Pitch remains the favoured way of selecting an agency

Evaluating agency credentials: What turns clients' heads

In a 2018 article in AdAge, MediaLink chairman and CEO Michael Kassan was quoted as saying: "Nobody has a crystal ball and nobody can say the agency of the future will be this way or that way. But what we can say is that there has to be a true willingness for the agency of the future to be more adaptive and reflective of clients' needs. Only the ones who can adapt will survive."

Today, Johanna McDowell, CEO of the Independent Agency Search and Selection Company (IAS), concurs. “Even as we talk ‘new normal’ and ‘futureproofing’, we need to clearly define this sentiment so it becomes a business imperative,” she says.

“The way agencies are going to turn a client’s head in the current market is by understanding that their credentials are far more than creativity, no matter how amazing.”

The SCOPEN 2019 Market Trends Report shows that, even while creativity is important, it forms part of the broader segment that includes credentials, case studies and quality of work. “This,” notes McDowell, “is what we encourage agencies to start a pitch with. And today, I’d include return on investment (ROI) as a vital up-front addition".

“This enables both the marketer and procurement to tick off what has become a crucial box before being swayed by creativity they can’t afford or that is questionable on the ROI front. We can’t put too fine a point on how important the latter is across all business sectors now.”

Industry reputation

McDowell highlights the value of adding some history about the agency and its standing in the industry and a client list. “Back this up with press coverage and case studies, as well as a brief analysis of outcomes, or value for a client’s spend.”

Company culture, BBBEE standing and procurement recommendations are also valuable, and often help clients determine whether they have a perfect fit or merely a creative agency.

“At this juncture, specialisation is also important, as some clients look for ‘one shop fits all’ and others are happy to have more than one specialist agency in order to cover digital capabilities, strategic planning and a good understanding of the client’s market. These are all becoming must haves rather than nice to haves,” McDowell asserts.

The IAS encourages clients to evaluate credentials during a pitch process, as this session gives them a better view of how the agency will ultimately perform. McDowell notes here that the client who is seduced largely by creative work and isn’t actively looking for strategy and measurement tools is the client most likely to be disappointed soon into the relationship with an agency.

To highlight the importance of overall credentials, the IAS decided to bring back the IAS Credentials Award, launched in 2016 in collaboration with the DMA Assegai Awards for integrated marketing excellence. 2020 saw an increased number of entries, and in 2021 we expect to see further growth with entries extending into Africa. The event will give participants a great opportunity to present all credentials to a diverse panel of Marketing judges during the current uncertain times.

“The ‘new normal’ has got many companies building the plane while flying it,” says McDowell, “so while we have the data to indicate trends and years of experience with what works, Michael Kassan is right – there is no crystal ball. What we do know for certain now is that the client seeking key credentials is more likely to get that magical ROI than the client wowed purely by creativity. Every ad Rand spent may not be pretty, but it has to count.”

Creativity without borders

US cultural anthropologist Margaret Mead said, “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” I concur — but must add, “until Covid-19”. 

The initial brushstrokes of Covid-19 painted darkness around the globe, with a force we could neither see nor fight, threatening untold misery. Now, almost two years down the line, we continue to count losses — but the resilience of the human spirit is showing up in small but bright patches across a number of industries.

As intermediaries, we are looking at the changes that affect our business. One of the most valuable is the realisation among marketers and agencies that we are a truly borderless world.

Creativity is no longer constrained to regions and intermediaries are free to find the best creative solution from a broader range of options than before. Not that technology hasn’t allowed remote working in the past, but the pandemic has forced more people to see its value and make choices that enable a combination of talent that really works for them.

Agility on a smaller carbon footprint

Smaller, more agile agencies can set up business almost anywhere and still have access to clients. The other big silver lining is that while we are working together from thousands of kilometres apart, we are able to reduce our collective carbon footprints like never before.

Where travel around SA and even overseas was often required for stakeholders to trust that their brief would be understood and their requirements met, online communications in their various forms have shown same-room discussions can be carried out as effectively online, and with less cost to the planet and the company budget.

Quality beats price

Because intermediaries usually know all players and are also adept at understanding the value new players bring to a project, we’re being called on by marketers who ask for remote agencies whose work they have seen — online. When a marketer says, “Let’s go global”, accessing those agencies is as easy as accessing those at home.

It’s been suggested that some foreign companies look to countries such as SA based on the strength of their currency against the rand. This is not true, in our experience. Every client seeks quality above all else. Anything less would be reputationally disastrous. If there is any cost-saving to be had with the same level of quality and professionalism they demand, it’s a bonus, but not a prerequisite.

Of course, the other bright light that has been enhanced by the pandemic forcing all of us to master online communications, is the greater trust that marketers and agencies place on the knowledge and value of intermediaries. 

We, like everyone else, are hoping the global vaccine rollouts continue apace, and more lives are saved as the days go by. In the meantime, we are all just grateful that the technology required for so many industries to keep doing business safely arrived before 2020, making creativity without borders a thing.

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AGENCY SCOPE South Africa: Responding to industry desire to raise the bar

The fourth edition of AGENCY SCOPE South Africa 2021/2022 is moving rapidly along towards disclosing the analysis industry leaders have come to value highly.

While media agencies have not been privy to how media owners see them in previous SCOPEN studies in South Africa, it is a new-to-South Africa section included in our research and should prove to be a highlight for both sectors.

Already included in SCOPEN’s research and analysis overseas, it was suggested by media agencies that media owners have input into the study as they have a unique and valuable view of media agencies which will add a further dimension to the study in addition to views from marketers.

For South Africa, it’s an innovation that we view as one that will continue to raise the bar and even enables comparison with global agencies.

Attributing excellence

Questions asked of media owners see agencies ranked by specific attributes. The value of this for agencies lies in understanding what both the media owner and the client want, and adjusting their performance to comply.

On viewing their ranking, the true value for subscribing agencies is being able to note current trends and measure themselves against overall industry standards.

Total interviews completed in the fieldwork for AGENCY SCOPE South Africa 2021so far include 174 CMOs and 148 agency professionals. By the time fieldwork is completed 17 September, these numbers are expected to increase to 250 CMOs and 200 agency professionals as well as 50 media owners.

This new addition to the South African version means that after analysis and publication of AGENCY SCOPE South Africa 2021/2022 subscribing media agencies can see all ratings, and determine which areas media owners are looking for maximum capability.

We’ve reached an exciting time in the fieldwork, where we are able to see how South African companies in our industry are looking to improve in all areas, and looking forward to seeing the input from the industry as a whole.

At a time when remote work has dissolved all borders, it is heartening to see local organisations preparing for global competitiveness on every level.

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Agency Credentials: So much more than swagger

Credentials. Bona fides. Street cred. No matter which way you look at it, what the mind conjures up is no single attribute. It's the whole package - the attitude, the appearance, the swagger. So it is with agency credentials, writes Johanna McDowell, CEO of the Independent Agency Search and Selection Company (IAS).

It’s long been my conviction that creativity alone may win awards, but if it doesn’t win sales or new business for the client or brand, it’s merely gilding. Now, in an environment that has changed rapidly recently and is presenting us with new challenges, it has never been more important to lead any pitch with return on investment (ROI).

This means that clients need to feel confident that an agency understands their specific business requirements. Agencies do this by revealing their credentials, the foundation on which ROI sits.

As client-agency relationship experts, the IAS has always encouraged clients to make time to evaluate agency credentials during a pitch process. The agency that leads with its list of creative awards must follow swiftly with its street cred.

This includes some history and other information about the agency; a client list; its standing in the industry backed up by press coverage and case studies; and its value for money. Culture, BBBEE standing and procurement recommendations are also valuable, and will help the client to determine whether they have a perfect fit or just a creative agency. This is a crucial step for the client.

With the importance of overall credentials in mind at this point in our industry’s journey, the IAS took the decision to bring back the IAS Agency Credentials Award, first held in 2016 in collaboration with the DMA Assegai Awards for integrated marketing excellence. In partnering again for the second year, both organisations hope to place ROI back at the forefront of campaigns.

According to David Dickens, CEO of The Direct Marketing Association of SA, the Assegai Award will this year include entries from international agencies. He notes that this alliance with the IAS means agencies get their credentials out to marketers, and not just their creativity.

“It’s all about giving quality back to the client,” he says, adding that having marketers and peers reviewing agency’s work is what ensures value. A diverse and robust panel of judges will include international participant invited by the IAS, Cesar Vacchiano, CEO and President of SCOPEN International, together with a number of renowned local marketers.

Set for November 2020, the format of the awards will be determined according to safety protocols, and may be held entirely virtually but – importantly - the objective will be real: “It’s about the ROI of advertising,” says Dickens, “knowing what you’re getting back for your buck.

“We’re excited to grow the Assegais with the IAS, as the IAS experience with credentials creates a win-win situation for all stakeholders which is key.”

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IAS Agency Credentials award once again part of the prestigious Assegai Awards for 2021

The Assegai Integrated Marketing Awards, in conjunction with the IAS, introduced a new award category into the 2016 awards programme: the IAS Agency Credentials Award. The award received some interest with entries in 2016 and the first winner announced that year, being Promise Agency.

The IAS then relaunched the award in 2020 in conjunction with the Direct Marketing Association of South Africa (DMASA). which hosted the Assegai Awards. Once again, the aim of the award is to recognise an agency’s credentials set – written credentials document as well as the agency culture reel – within the various agency discipline types e.g. creative, digital, PR, media and design in South Africa.

According to Johanna McDowell, the CEO of IAS: “This award will only be judged by marketers and not other agencies or journalists. We want to put agency credentials in front of as many marketers as we can in order to create opportunities for those agencies.” The IAS will also ensure that at least two international intermediaries as well as the IAS directors are part of the judging panel for this award.

In addition, this year, entries will be encouraged from agencies in the rest of Africa and the Middle East. “We look forward to working with the Assegai Awards as their sphere of influence increases into the African continent. This coincides perfectly with the IAS’s expansion into other parts of Africa,” concludes McDowell.

Closing date for entries is 27 August. The IAS Agency Credentials Award falls into Section F. All details can be found on the Assegai Awards website: https://www.assegaiawards.co.za/award-categories/

The Direct Marketing Association of SA says its Assegai Awards entry season and there are 45 days to go before entries close...

Comments David Dickens, CEO of the DMASA: “It was a natural fit that we should include a Credentials Award into our categories of awards for agencies in the Assegai programme in 2016. We are very pleased that the IAS is once again partnering with us for this important award.”

When the pitch is a small part of the whole

Long known as pitch consultants with expertise valued by agencies and marketers, remote work has brought to light the broad range of services intermediaries bring to the table, and it's a feast for clients.

Never before has value versus cost been more important to marketers and agencies. The global pandemic forced all industry sectors to assess the services they invest in and determine how much of their spend would provide adequate return in investment during the uncertainty.

Interestingly, a trend we’ve seen in the sector is that intermediaries are being called on from prior to pitch and through onboarding, right up to ongoing guidance. While this holistic approach has always been on offer, it appears that operating remotely due to Covid-19 and its restrictions has made agencies and marketers look to intermediaries to confirm their requirements and operational choices.

A deeper look into the timing of this phenomenon shows that the role of the intermediary has blossomed with the uptake of video conferencing and few face-to-face meetings. Because the “middle men” have built their businesses and reputation on their thorough knowledge of all parties involved in a pitch, few are better placed to give the guidance required to all parties.

As the go-between with a vested interest in every relationship succeeding, we are seeing a need for intermediaries to be on call for at least the first 60 days of a relationship. Because of their prior understanding of what each party does and how best to guide them, clients have shown a greater trust in the online relationship with their chosen experts.

Trust in the leap to online

While many businesses took time to build up trust in online communications as the pandemic hit hard, intermediaries were in the privileged position of already having an intimate knowledge of those they were working with. They felt comfortable enough to pick up the phone at any time or Zoom in to a discussion, even on the difficult issues like contract negations and casting their nets wider to attract companies not previously used.

It is this trust that we have seen grow through the difficulties Covid brought. In fact, one project that went surprisingly well for the IAS was a global pitch from a London-based firm looking to South Africa to meet its requirements in 17 countries in Africa.

Owing to previous dealing with the agencies, those put forward were tried, tested and known to us. There was not a question that couldn’t be answered for the client, when they needed the answer.

On reflection, I believe the trust that we are sharing across our sectors now is not new, but it is more profound. Clients who have always known they could trust the process didn’t realise just how much they could rely on it until they had no other choice.

Years of meeting, working with and understanding the people and processes in our industry has paid off in a closer, more empathic relationships and a renewed trust we may not have had without technology making things more personal.

And if that isn’t as unpredictable as it is serendipitous, I don’t know what is.

Pitch remains the most favoured way of selecting an agency

The 4th edition of Scopen's Agency Scope UK 2021/22 has been released and highlights key trends in the UK's communication, marketing, procurement and advertising industry, and provides in depth positioning and competitive information to both creative and media agencies.

This study takes place biennially in ten other markets around the world (Argentina, Brazil, Chile, China, Colombia, India, Mexico, Portugal, South Africa and Spain), which enables the inclusion of global benchmarks in some key aspects. This UK edition was developed by Scopen in partnership with Warc and with participation of ISBA members.

The universe of analysis comprises the highest-level decision-makers in marketing, communications, advertising, and procurement, from the largest and most important companies in the UK. Professionals interviewed in each company had to be involved in and interact in the decision-making process for selecting and approving their agencies’ work on an ongoing basis. Over 300 client-agency relationships and 141 marketing professionals were analysed.

Each year as a result of the studies taking place in the various markets, SCOPEN gathers more than 3,000 opinions globally from interviews with CMOs.

Pitch remains the most frequently used method to select an agency in the UK

To create a long list of agencies, the most mentioned sources of information are the quality of the agency work/cases/credentials followed by experience/personal knowledge and friends or colleagues recommendations. When it comes to building a short list of creative agencies, the most mentioned aspects are creativity and innovation, agency's previous experience and expertise, and agency reputation/image/prestige.

Pitching is the most frequently used method to select an agency, used by 92.6% of marketing professionals in the UK. Also, popular are workshops (67.6%), whilst consultants (28.7%), by credentials (15.7%), direct appointment (6.5%) and trial assignment’ (0.9%) are used less frequently to appoint a new agency.

Johanna McDowell, Scopen Africa Partner, comments, “We saw the same trend in the South Africa study in 2019, and we are anticipating little change when we view the results of the Agency Scope South Africa 2021 study, currently in the field.”

Involvement of procurement increases

66.7% of marketing professionals in the UK stated that their procurement department is involved in the negotiation processes. The involvement of procurement has increased in the last few years worldwide, and China shows the highest percentage (77.1%) among all countries where the study is conducted.

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UK Marketers prefer specialist agencies to solve their needs in different areas

The Power of Knowing: First insights into AGENCY SCOPE UK 2021/20222

UK marketers prefer specialist agencies to solve their needs in different areas

The 4th edition of Scopen's Agency Scope UK 2021/22 has been released. A research study that highlights key trends in the UK's communication, marketing, procurement and advertising industry, and provides in depth positioning and competitive information to both creative and media agencies.

This study takes place biennially in ten other markets around the world (Argentina, Brazil, Chile, China, Colombia, India, Mexico, Portugal, South Africa and Spain), which enables the inclusion of global benchmarks in some key aspects. This UK edition was developed by Scopen in partnership with WARC and with participation of ISBA members.

The universe of analysis is comprised of the highest-level decision-makers in marketing, communications, advertising, and procurement, from the largest and most important companies in the UK. Professionals interviewed in each company had to be involved in and interact in the decision-making process for selecting and approving their agencies’ work on an on-going basis. Over 300 client-agency relationships and 141 marketing professionals were analysed.

Each year as a result of the studies taking place in the various markets, SCOPEN gathers more than 3,000 opinions globally from interviews with CMOs.

Higher turnover and marketing budgets than in 2019

The average company turnover declared by respondents is £10.9 billion (B), while the average company marketing budget declared is £41.7 million (M). In both indicators, companies have declared higher figures than in the previous edition. Marketing and communications budgets represent 0.4% of the total of companies' average turnover.

Digital investment increases more than 18% since 2015

37.5% of marketing’s budget is invested in above-the-line actions, 21.8% in below-the-line actions and 40.7% in Digital (it has increased 18.5 percentage points since 2015). Digital is, for the first time in this study, the discipline that has received the largest investment of the marketing & communications’ budget. Digital budgets in the UK are higher when compared to most of the markets in which AGENCY SCOPE is conducted (40.7% vs. 35.7% average investment from the ten market-benchmark).

UK marketers prefer specialisation vs. integration

58.8% of marketers mentioned that they work with different agencies, specialists in different disciplines. 60.2% of respondents declared that, in the future, they would prefer to work with specialist agencies that would solve their needs in different territories, while the other 39.8% stated they would prefer to work with an integrated agency to solve all their marketing and communication needs under one roof.

UK is above the global benchmark in terms of the desire to work with specialist agencies in the future and, globally, we notice two different trends: one going towards the search for integrated agencies (Argentina, Brazil, Chile, Portugal and South Africa) and another going towards specialists (Colombia, Mexico, Spain, UK, China and India).

Johanna McDowell, partner for Scopen in the UK and South Africa and CEO of the IAS (Independent Agency Search & Selection company), says “These results are a good indication of trends that are happening globally in the advertising sector and it will be interesting to see how these compare with the results of the Agency Scope study in South Africa in 2021 where results are due in October this year.”

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AdForum Global Summit Feedback

The Ad Forum Global Summit – the third virtual one that has been held – took place over six days with morning and afternoon sessions timed so that colleagues in the US, Europe, Africa and Asia could join in with minimal difficulty from a time perspective.   The Summits have been highly effective in keeping us connected as global pitch consultants and also the agencies who have participated.  It has been very interesting to see which agencies have really thrived during the pandemic and the steps that they have taken as businesses in order to grow and prosper.

This Summit was more about that business aspect as well as the typical reviews and case studies of client work.  So this report looks at those key highlights from global agency leaders. Of the 10 agencies and agency groups we met per the agenda above, here are some key findings:

WPP – Mark Read

Just like 12 months ago Mark Read was at the start of this Summit – though this time he was live and could report back on what has happened within WPP in the past 12 months.  Some key points:

·        The value of saying “No” to unreasonable requests so as not to be overwhelmed

·        A predicted downturn in profits of 30% for 2020 turned out not to be nearly as bad

·        2021 – has bounced back well

·        Mark has been most surprised by how well they have managed

·        WPP has grown

·        They have saved on costs – travel, rentals, operating costs

·        They won more new business in 2020 – up by 40% on the previous year

·        And they learned more about each other in the company – the culture of WPP has been strengthened through the pandemic

And my favourite of his comments:  “By the time we get back to normal, we will have forgotten what normal is”. 

Looking forward:

·        Mark said that he has seen more of his clients than before as they are more accessible – he wants to continue with this

·        Clients are now questioning if they have the right agency partners in place in order to grow

·        WPP predicts strong growth for 2021 and 2022

·        VMLY&R has been the best performing agency in the group

·        Biggest account wins in the past two years have been integrated and using a few of the agencies in the group

·        WPP are keen to get their people back into the offices – but not necessarily five days a week

·        Would like to see much clearer objectives in pitch processes

·        Is committed to achieving the goal of making WPP the most creative company on earth – along with creative partner Rob Reilly

Altogether an excellent session to boost the Summit start.

OGILVY – Andy Main Global CEO and Devika Bulchandani CEO of North America

Andy – as the recently appointed global CEO commented that his first impressions last year were that Ogilvy had “more P/L’s than people” with a structure that was too complex.     

They have restructured the agency group into five businesses:

·        Growth and innovation

·        Public relations

·        Advertising – ABC – advertising, brand and content

·        Health

·        Experience

Agency leaders within the group are now able to focus on these businesses while the finance team in the background focus on the nitty gritty of financial management.  New business gains have been significant in the past 12 months and they have also noticed that 59% of their clients in the group work with two or more of the businesses of the five identified above.  The “intersection” of these is where the magic is happening.

·        Ogilvy spoke of Intersection rather than Integration. 

·        Intersection brings impact – whereas  “integration is the enemy of creativity “    

·        Intersection frees up other thinking

We were to hear the word “intersection” several times throughout the Summit. In fact, it became the word of the Summit this year.

Several excellent case studies demonstrating the most recent work from the various businesses were shown to us in order to prove the results of this restructuring for the various client brands.  We concluded that the session with Ogilvy was probably the best in more than 13 years of attending this Summit.

MSQ Group

This was interesting as it is a new holding company with nine specialist agencies, in digital and tech mainly, and their model is to build a multi-discipline system around a client’s needs.  They have 13 global offices, 855 staff and 250 clients with a revenue of 100 million pounds Sterling in 2020.   40% of that revenue is derived from B2B marketing making them quite unusual among the larger groups. Some great work from Tetrapak, Chanel and Lifebuoy illustrated their approach and success.  They don’t have representation yet in Africa – but no doubt this will be part of their growth.

Accenture Interactive   

Jon Wilkins and his leadership team built on what they shared with us at the NYC summit of 12 months ago.  Since then, they shared with us what has accelerated the growth of this ever burgeoning global agency (not a holding company) which celebrates its 12th anniversary this year. 

They observe that – for the first time ever - consumers are buying brands based on experience rather than just quality and price.  They believe that the formula for growth and relevance is to become a Business of Experience.  BX.

They revealed that Jaguar Land Rover and their internal agency Spark 44 are now part of Accenture Interactive globally – in South Africa too – and that personalised customer experience with creativity and technology at the core will be their offering.

Another recent acquisition is Creative Drive – a creative content, long form, short form content, commercials business with 150 sites/studios all over the world. We heard from the founder of Creative Drive that the reason they wanted to be acquired by Accenture Interactive was for their transformational skills.  This acquisition which took place in August 2020 has created the perfect combination of makers and doers.       

Other than those four highlights, we were updated by some of the world’s leading agencies such as DDB, McCann Worldgroup and Dentsu, and some interesting independents such as The Richards Group and Giant Spoon.  

We probably have on hand about 20 superb and recent case studies, and we will be sharing these at our forthcoming summit feedback session to agencies and marketers at the end of June.

Key learnings

·        How agency healthcare divisions and skills have expanded enormously in the past 12 months

·        How agencies have been productive and focused in the past 12 months

·        And there is a degree of greater optimism and growth as the world starts to return so more in-person contact

·        That agencies and consultants are “virtual weary” and while the importance of staying connected cannot be over emphasised – with the Summit succeeding in doing that – we sense that both agencies and consultants prefer the intimacy and confidentiality of the in-person Summit format.

Next stop London Summit in November 2021.

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The AdForum Global Summit - Helping clients thrive during the pandemic - part 1

The AdForum Global Summit - Helping clients thrive during the pandemic - part 2

AGENCY SCOPE fieldwork to provide new levels of value

AGENCY SCOPE’s biennial research on trends within the marketer-agency relationships has taken to the field on a high note, as the number of participants to be interviewed has rocketed from 70 decision makers in 2016 to 500 in 2021

SCOPEN partner and CEO of the Independent Agency Search & Selection Company (IAS) Johanna McDowell says 300 of the interviewees are expected to be Chief Marketing Officers (CMOs), providing AGENCY SCOPE with “from the horse’s mouth” value for all subscribers.

“Virtual interviews will be conducted online for an hour, with a team of five professionals taking participants through the rigorous discussion and questioning that has made AGENCY SCOPE a must for its credibility,” says McDowell.

“The rapid call for digital and remote solutions and communications that the pandemic brought in 2021 means AGENCY SCOPE 2021/22 has fine-tuned our traditional questions to meet the requirements marketers will have in 2022.”

To dig deeper into what marketers are looking for in agencies and how agencies are stepping up to expectations within this altered environment, updated questions across a number of areas now include market trends, agency perception, agency performance, and what participants perceive to be the ideal agency.

Cesar Vacchiano, President and CEO of SCOPEN International, says this key information will cover an agency’s ability in strategic planning, knowledge of the market, client and brand; creativity; and professionalism.

“Many CMOs want integrated services from their creative agencies, and these agencies have evolved to attract talent in many disciplines related with BTL and digital, the latter being of prime importance right now,” says Vacchiano.

“An exciting new section of the research is quizzing more agency professionals on key factors such as talent attraction and retention. This and other core data around staffing and agency culture will enable us to produce a Best Agency to Work for framework.”

Deeper analysis to meet global conditions

McDowell notes that current global conditions have given rise to the need for deeper analysis across the industry. “In response, this fourth edition of AGENCY SCOPE will not only see marketers evaluating agencies, but the agencies rating marketers and clients.

“Within the strictest confidence, each subscribing agency will be able to identify others most likely to provide the toughest competition for them and use that information to up their game. Our post-interview analysis will provide a final report with analysis by agency profile, type of companies, stated verbatim from clients,” says McDowell.

“AGENCY SCOPE’s executive summary of the report, highlighting key data trends data from the study, will enable subscribing agencies to conduct their own evaluation of other agencies in order to set benchmarks for their own services,” Vacchiano asserts.

McDowell concludes that analysing and publishing AGENCY SCOPE fieldwork data will give rise to a SCOPEN  Data Platform that enables subscribing agencies to tap into the data that they can use to set new benchmarks in this rapidly evolving industry.

“We are extremely excited to keep our subscribers in the know, at a time when the only thing we know for sure is that we need to know more.”

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AGENCY SCOPE: Trends on the path to a new world agility

Courage under fire. How marketers and agencies made lemonade

Come what may there's a marketing strategy for that

As the world continues to navigate a not-quite-post Covid world, savvy marketers are already combining lessons learned with possible future setbacks to ensure they’re ready for both upturns and curve balls, writes Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner.

Consumer – and therefore marketer – behaviour can never go back to what it was before. Consumers rapidly got used to ordering online and goods arriving fairly promptly, creating an expectation of a higher service level than ever before.

As marketers quickly positioned brands in ways that made them easily accessible to clients in lockdown, e-commerce finally got the glory it deserves in South Africa. As I’ve said before, this has placed digital front and centre of all marketing operations in the business to consumer (B2C) sector.

However, retailers can’t afford to ignore the value of hybrid shopping, and the omnichannel wave we’re seeing. Brands offering services will still need to boost their online presence to help consumers cut through the clutter, so covering all bases is vital.

Strategy for making your mark

Cognizant of predictions of a surprising upturn in a number of global economies – and even a marginal, unexpected one in South Africa – predicted by firms like Deloitte and PwC, astute marketers are already reviewing their internal and external capabilities and those of the agencies they currently work with.

The IAS is seeing some marketer investment in setting up a dynamic business strategy that can be adjusted to suit a market that demands flexibility. For some, this may mean investing in talent that not only survived the Covid crunch, but actually thrived. For others, a strategy that uses synergistic relationships with trusted partners as and when needed. This would give marketers the benefit of top creative and digital skills, without the staff complement on their payroll.

Factored into this strategy must be some sort of retainer to ensure the marketer’s hand-picked partners make themselves available as and when needed.

Looking back over 2020 and the first quarter of 2021, marketers must note their core strengths and weaknesses and examine their company culture to make changes where required.

This will include managing expectations from their own staff and agencies. A recent Forbes article cited a Harvard Business School study, which included over 3 million people who worked from home, found that the “average workday increased by 8.2%” during the beginning of the outbreak.  

Importantly, any post-pandemic strategy must be underpinned by the marketer’s key goal and what must be done to attain it. Build it around a timeline so that internal and external capabilities are available for a financial upswing – or another lockdown. Nobody wants to entertain the thought of further lockdowns, but factoring in the possibility will ensure your ability to stay the course, come what may.

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On the rebound: Agencies polish up post-pre-pandemic relationships

Economic recovery. Prepare for the upswing

On the rebound: Agencies polish up ‘pre-post-pandemic’ relationships

While the pandemic is far from over, the anticipated upswing in marketing means agencies must review the lessons learnt over the past 12 months, to match the steps marketers are taking to get back in the swing of things.

As we review the market at this “pre-post-pandemic” juncture, agencies are identifying their core strengths and weaknesses while examining their company culture and making changes that enable them to be what marketers need.

The outbreak of Covid left many shellshocked initially, but the resilient soon saw what they needed to do to participate in what turned out to be one of the sectors that actually showed a profit.

Planning for the global trade growth that is expected to rebound by 7%-8% in 2021 means agencies have some serious decisions to make. Those who were able to provide the digital initiatives marketers and brands demanded through lockdowns understand the importance of the platform and are likely ready for the next stage.

Others will be looking to make the changes necessary to stay afloat. According to research giant Forrester, today’s customers expect far more from brands. “They demand more transparency, greater commitment to values, more exciting experiences, and more convenience. To succeed, B2C [business-to-consumer] marketers must craft and execute visionary, customer-obsessed strategies.”

This, of course, means creatives must work with marketers to meet customer expectations to improve brand loyalty and customer experience (CX). What we’re seeing agencies do right now is responding to the needs of marketers who are looking to form partnerships they can count on, now and after Covid.

The agency that is proactive in creating the perfect rebound relationship with marketers is one that will thrive. Focus must be on delivering hyper-relevant, emotionally resonant brand experiences and seeking out the talent that can enable you to do this.

The days of the agency waiting for a brief are numbered, if not over. The winners will be those noting now where advertising is headed in the next few months, and how they can produce the goods that meet changing consumer expectations and desires.

While we’ve all been warned about that “rebound relationship” in the past, this is one you will want to work on, as the rebound from 2020 continues to surprise – and even delight

Economic recovery: prepare for the upswing

Somewhere between the opinions of the doom merchants and those of the bliss mongers there’s rising buoyancy across a number of industries. And with cautious optimism comes the unzipping of wallets.

The International Monetary Fund (IMF) says it expects the world economy to grow by 6% in 2021, up from its 5.5% forecast in January. For advanced economies, the IMF estimates growth of 5.1%, with the US set to expand by 6.4%.

What is driving the most positive global outlook in a year are vaccine rollouts, financial support from many governments and a light at the end of the restrictive lockdown tunnel.

SA firms creating strategies for any eventuality

SA companies were hard hit, and most received little fiscal assistance, but the marketing and advertising industries fared far better than many, particularly in the digital arena. The Independent Agency Search & Selection Company (IAS) is already starting to see movement among the more progressive firms to source the talent they know will best serve them in any eventuality – another lockdown, or borderless business and the freedom to meet.

Marketers who had robust relationships with their agencies will be looking to build on those relationships and further solidify their combined ability to serve brands. Agencies, too, are seeking best-fit solutions, either by creating an in-house digital division or by including outsourced expert digital operations in their blueprint for strategy for 2021 and beyond.

Now that both marketers and agencies have showed their mettle in the digital sector, there are fewer barriers to entry for local firms to handle work from foreign clients.

As noted by Emily Cashen in World Finance magazine, while tentatively scoping out a post-pandemic future, “governments around the world will need to shift their thinking from ‘survival mode’ to focusing on future economic growth”. We believe companies must do the same, with a view to changing what didn’t work over the last 12 months and investing in what did.

Meeting the future by strategising now

Key among the latter has been digital infrastructure and ongoing training for staff, not only to meet today’s Covid-compliant requirements but to be ready for whatever may be needed tomorrow.

Now that both marketers and agencies have showed their mettle in the digital sector, there are fewer barriers to entry for local firms to handle work from foreign clients. Upskilling talent on a regular basis, or outsourcing specific jobs to trusted solo or smaller firms, is vital to ensure your ability to work from anywhere, with anyone.

While not all economic upswings are equal, SA’s output is expected to grow 3.3% in 2021, according to Deloitte. Even though this is comparatively low when viewed in the context of global growth, the feeling across our industries is one that is in that cautiously hopeful place between the doom merchants and the bliss mongers. And after what 2020 brought us, this is not the worst place to be.

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Courage under fire: How marketers and agencies made lemonade

The old adage talks about how to react when life gives you lemons - but under circumstances unseen in our lifetime, what do you do when life hands you a pandemic? If you’re in our sector, you respond with grit not seen in our lifetime, writes Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner.

“Where were you when the world shut down?” is a question we’ll raise at dinner parties far into the future, and each of us will tell our story. Each sector will relay either devastation, just getting through the trauma or being able to take the challenges Covid19 created and making something special.

SCOPEN’s January 2021 white paper The Show Must Go On: Success stories during a pandemic shines a light on some of the marketers and agencies who faced fire with fire and braved these less favourable conditions with agility and boundless creativity.

Burger King in Brazil comes to mind for a campaign that not only reinforced the slowly-growing body of medical wisdom at the time, but also used one of the pandemic’s key methods of stemming the spread of the virus – stay at home to flatten the curve – to underpin a winning campaign.

The premise saw the “gamification of a duty, where any obligation is more easily endured when there is an emotional or material reward for fulfilling it”, according to Rafael Donato Creative VP DAVID agency. “We gamified the quarantine, turning the isolation time into benefits at Burger King.”

The campaign saw 238,000 people staying home for over 27 days, racking up a massive 306,000 rewards given out by Burger King. ROI from media mentions all over the world – uncountable and invaluable.

Necessity as a driving force

The primary driving force for most new initiatives is need, and Covid19 provided plenty of that. From the Nike campaign in China to Orange France’s 700,000 connections uniting people all over France, big brands went the extra mile to help out wherever they would be most effective. Even South Africa’s Shoprite Group kept supply chains open during lockdown, reducing risk for customers and providing essential products and services without profiteering.

Most striking when we read through the white paper is how marketers and agencies worked together so closely, even while they were not allowed to be close.

This is what we at the IAS mean when we talk about the value of an authentic relationship between marketers and agencies. People from both sectors were effectively in silos, but working as one mind to meet the demands put on them. The courage it took to trust each other was immense and paid off in spades.

Imagine just two years ago telling a TV production team they would have to create vital messaging during an unprecedented time in history – but they weren’t allowed to meet in person. Many of us would have put money on an epic fail. Instead, driven by necessity, teams found workarounds, ways and the will to put the best of themselves into projects that truly made a difference.

I’ve often said that the attitude “That’s the way we’ve always done it” has no place in our business, and SCOPEN’s The Show Must Go On is proof that when all there is are lemons, we can – and do – make lemonade.

To enjoy this exceptional, innovative and courageous creative work click here