AdForum is a unique and hyper-focused event for agency CEOs to present their strategy and vision to the world's leading search and management consultancies. IAS is proud to be representing SA and Africa at this summit.
ADFORUM GLOBAL SUMMIT 2022 AMSTERDAM 6-9 Nov Day 1
AdForum is a unique and hyper-focused event for agency CEOs to present their strategy and vision to the world's leading search and management consultancies. IAS is proud to be representing SA and Africa at this summit.
AdForum Global Summit 2022 Amsterdam 6-9 Nov Preview
AdForum is a unique and hyper-focused event for agency CEOs to present their strategy and vision to the world's leading search and management consultancies. IAS is proud to be representing SA and Africa at this summit.
IAS, Eley Consulting partner in media assurance auditing
Maximising media effectiveness is vital for marketers and media agencies, which need to prove that budgets are optimised through the most fruitful advertising on the right platforms. Independent Agency Search & Selection Company and Eley Consulting have formed a partnership offering media assurance auditing. While both parties are pivotal in this process, the question of who is checking the measurable return on investment (ROI) is not always easily answered.
To ensure in-depth, independent media analysis, Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and Scopen partner, has announced a partnership between the IAS and global media and marketing consultancy, Eley Consulting.
“In offering media assurance auditing, we review every area of a media process across all platforms to help marketers and media agencies see whether each area is aligned with best practice, while also ensuring good governance and compliance,” says McDowell.
Eley consultant Richard Edwards highlights the importance of impartiality in the auditing process: “We are not agents and our fees are fixed and entirely transparent. Not only does this enable us to give clients the assurance that their money is being well spent, it also means we can suggest a more profitable direction for the agency to take if their return on investment is lagging.”
Multi-platform audits and analysis
McDowell notes that by conducting a series of interviews and collecting media data and supporting documents from a client over a two to four week period, the IAS and Eley are able to undertake regular analysis over a number of campaigns.
“While the traditional platforms like TV and print are still a mainstay, digital is growing and changing rapidly, and often presents complications with the benchmarking of costs,” she says.
“Through regular auditing, we’re able to give media agencies and marketers the figures and direction that are the vital ingredients in delivering media effectiveness.”
Edwards adds that improvement is always a good thing, especially where it results in time and cost savings. “Our audits may not necessarily mean cheaper media in cash terms, but will certainly ensure an agency is delivering as rich a schedule as possible.”
Both Edwards and McDowell believe the partnership’s independence is key to its ability to empower clients to better understand the spectrum of advertising opportunities and take control of it, in conjunction with their media agencies.
“We see media assurance auditing as an enormous benefit to marketers, agencies and media houses, enabling the transparency in cost and compliance industry-wide that is vital to the trust that long-term relationships between all parties require,” McDowell concludes
Scopen 2023/24: South Africa's fifth wave study set for May
“The fifth wave of the AGENCY SCOPE study is on track in South Africa and Cesar Vacchiano, President and CEO of SCOPEN International, will be arriving in South Africa in February, ahead of fieldwork on the study beginning in May 2023.”
This is the word from Johanna McDowell, SCOPEN partner and CEO of the Independent Agency Search & Selection Company (IAS), noting that the study is published every two years after in-depth meetings with the highest-level decision makers across marketing, communications and advertising, from the largest to the smallest spending marketers in South Africa.
“In interviewing over 3000 CMOs around the world, we’re excited to see what 2023 brings, given that it signals the tail-end of the pandemic and the so-called ‘new normal’,” she says.
“We worked around Covid19 to be greeted by a year of the war in Ukraine, scary governments across the globe, elections in many parts of the world, gas shortages, the death of Queen Elizabeth II, the longest serving monarch in Britain, climate crisis facts and load shedding. 2022 brought much for us to digest and learn from heading into 2023/24.”
McDowell highlights the conducting of face-to-face interviews again, after the previous fieldwork being conducted virtually. “A key objective next year will be to interview more marketing professionals from more companies.”
Ramping up AGENCY SCOPE’s evolution in SA
Another step in AGENCY SCOPE’s evolution will be interviewing new profiles of key decision makers within the participant companies, encompassing leaders in digital, technology and innovation. “These managers also hire and work with agencies and other partners,” says McDowell, “which will bring even greater depth to the value of data we collect.”
The fieldwork will also identify and include other profiles of client companies, over and above the usual investors in communications. In this section, the study will note start-ups, the dot.com sector and digital platforms that are working with agencies more than ever before. “Numbers in this area may not be significant at this point,” she says, “but it’s certainly an area we need to be aware of to keep our finger on the pulse.”
Lastly, among the additions to AGENCY SCOPE 2023/24, the study will amplify its sample of agency professionals interviewed, an important viewpoint to understand as they assist in determining which agencies are most attractive to work for.
“For the first time in the South African study, AGENCY SCOPE 2020/21 included the results of the best agency to work for. The success that this data found in the market is driving a broader study for the next,” she asserts.
Here, McDowell highlights the introduction at the tail-end of the last study of SCOPEN’s bespoke digital platform that provides a crisp, user-friendly screen to facilitate intelligent searches, broadening the scope of what can be quickly accessed from the data, categorised by choice of city, industry or even type of agency services required.
On its release in 2021, Vacchiano said the platform enables log-in, look and learn efficiency in finding client specifics that give subscribers a better understanding of how different types of companies think and make decisions about their agencies.
McDowell adds that going into the 2023/24 study, this data will be richer and even more valuable.
AGENCY SCOPE fieldwork calendar
Interviewers will hit the ground running in May 2023, with their tasks completed by the end of August. Analysis and processing will run through September and October, and reports will be presented from 23 October for a month.
One-on-one meetings with the agencies will be held in February, when Vacchiano arrives in the country and spends a week talking to subscribers. “We’ll be gathering the commentary of agencies around what they feel is important to glean from the study.”
SAMPLES OBTAINED IN PAST EDITIONS
“Samples of the research from 2016, 2017, 2019 and 2021 show how this sector has grown from 191 respondents across marketing, creative and media professionals in 2016 to 465 in 2021, with Media Houses getting onboard,” says McDowell. AGENCY SCOPE will be aiming for 650 completed interviews in 2023.
“After much turbulence, we see 2023 as the opportunity for marketers and their agencies to steady the industry and apply innovations from the recent past, while continuing to seek new ways of collaborating and growing their businesses, based on robust data,” concludes Vacchiano.
MarTech and the marketing ecosystem
MarTech holds great promise helping marketers to optimise efforts and achieve their objectives. To help marketers navigate the technology, AAR Group and The Drum published The Marketing Ecosystem Blueprint earlier this year. IAS is an associate of the AAR Group and have a well-established relationship over more than 15 years.
Among the challenges AAR highlights for CMOs, keeping pace with digital and technological change tops the list. It shows that 67% are currently reviewing their platforms and 44% researching technology that will deal with critical skills gaps, namely digital, data and analytics.
One of the results of seeing these gaps has been a rush to buy the MarTech that will enable the marketer to retain their edge. So, how does today’s CMO keep up with these changes and who is guiding them through this high-tech maze?
What I’ve noticed is progressive agencies assisting marketers and taking some of the burden off their shoulders by finding ways to work with MarTech in combination with their own traditionally-used technology. As The Marketing Ecosystem Blueprint says,leading a marketing organisation is not about continually throwing more tools at the team, but finding the ones that bring value, while keeping the process as simple as possible.
It’s a huge task and solutions can only be found when the CMO, CFO and CTO get together outside of their silos to create real solutions. AAR notes that the hold ups in progress right now are lack of budget, poor planning, lack of skills, the need for process change and poor communications, in that order.
Unless marketer’s and their colleagues make the time to put in the long and difficult discussions and actions needed to create a product that will help overcome the gaps, the solutions will always be easily unravelled.
Ensuring digital compatibility in partnerships
Marketers generally have a picture of what their ideal software will look like, as well as an idea of what is digitally possible – but the real solutions will be found when company leaders invest their time in the framework that will provide their desired outcomes.
In working with marketers and agencies, it’s clear to me that not buying the available MarTech isn’t the answer. What will bring everyone closer to an outcome that pays dividends, however, is making the time to communicate needs and be an integral part of the build.
Already-stretched resources may have to be stretched a little further to develop the critical skills required for a proper understanding of the MarTech stack. The IAS is increasingly approached to assist both marketer and agency to understand the impact of the MarTech race on each of their organisations, and to ensure their needs in the digital arena are met alongside their need for the chemistry that brings successful campaigns.
This vital issue of technology compatibility requires a marketer taking a technology capability assessment journey. By bringing together the agency’s tech team and that of the marketer, areas of compatibility can be determined and that data used to assist in pitch processes and overall relationship management.
For real value from MarTech spend, AAR suggests a CMO really understands how their company plans to adapt capabilities and design processes before purchasing and implementing new technology.
With solid communication, skills and understanding between the teams, the chances of MarTech functioning effectively as part of their ecosystem are far greater than if marketers keep investing in the next big thing in the hopes that it is more valuable than a previous iteration.
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Marketing Ecosystem Design
AAR Group in the UK, the leading global intermediary in the marketer/agency space and long-term associate company of IAS (the Independent Agency Search & Selection company) recently published a report on The Marketing Ecosystem Blueprint.
This report, written in conjunction with The Drum, explores how leading CMOs are approaching the challenges of effective ecosystem design, and whether there is a map for brands to follow which results in success.
Noting the research that reveals 75% of CMOs believe current marketing processes are obstructing effectiveness and consistency, and just 13% are fully confident they have the right processes in place to achieve their goals, Johanna McDowell, CEO of the IAS and SCOPEN partner says collaboration within the marketing ecosystem will be essential to driving change needed to deliver results.
“When we consider the kind of big advertising work and campaign creation that gets done these days, it’s more than the creation of a, say, television commercial. It’s a chain of collaboration, and while the big ideas are still absolutely critical to the success of a brand, how each link in the chain gets integrated into the final sale is the all-important process,” she says.
“As a marketer, it’s vital that your agency collaborators understand how your business works, including constraints and barriers that will need to be overcome. If you’re a manufacturer of chips, then it may not be about a new packet of chips, but possibly about a new way of packing the chips or selling the packet of chips. So, the process must begin with, ‘what are the barriers that will stop that idea from working?’”
Choosing your A-team
Process change is really the new frontier now, McDowell says. “David Droga, founder of Droga5 and arguably one of the most creative people on the planet, formed a collaborative partnership by seeking out a company that could make the ideas work for clients, starting with technology and systems.
“By choosing a consultancy whose initial touchpoint with the brand is at the highest level and includes knowledge of the business, its systems and its manufacturing processes, the advertising agency adding its creative spark means there’s no limit to what can be achieved,” she asserts. “An entire business model can be built around the understanding of the systems and the barriers, and solving these to make advertising work.”
Says McDowell: “Marketing is no longer an island. It must integrate all the other disciplines within a brand’s business and then integrate the creative agency into the mix. This is why the hottest topic right now is collaboration within the marketing ecosystem.
“This collaboration is not about merely getting the various agencies working together, but includes partnerships with the client and the various extended teams across all sectors of the business, in order to produce the blueprint and ultimately, its success.”
Designing or adapting process to encourage creativity and drive performance is key. AAR says the impact of collaborative processes between internal teams becomes evident when a marketing ecosystem influences the broader operating system, in terms of revenue growth, customer sales and customer relationship management.
“Marketers have to be brave enough to implement – at every level – the solutions that will result in a successful campaign,” McDowell concludes.
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Shaping the marketing ecosystem
The majority of chief marketing officers say current marketing processes are obstructing effectiveness and consistency, while only 13% are confident that they have the right processes in place to achieve their goals, according to a recently published report.
The report, “The Marketing Ecosystem Blueprint”, published by UK marketing consultancy AAR Group, a global intermediary in the marketer-agency space and an IAS associate, explores how chief marketing officers are approaching the challenges of effective ecosystem design, and whether there is a map for brands to follow that results in success.
Johanna McDowell, CEO of the IAS and Scopen partner, says collaboration within the marketing ecosystem will be essential to driving the change needed to deliver results.
“When we consider the kind of big advertising work and campaign creation that gets done these days, it’s more than the creation of, say, a television commercial. It’s a chain of collaboration, and while the big ideas are still absolutely critical to the success of a brand, how each link in the chain gets integrated into the final sale is the all-important process,” she says.
“As a marketer, it’s vital that agency collaborators understand how your business works, including constraints and barriers that will need to be overcome. If you’re a manufacturer of chips it may not be about a new packet of chips, but possibly about a new way of packing the chips or selling the packet. So, the process must begin with the question: ‘What are the barriers that will stop that idea from working?’”
Process change is really the new frontier now, McDowell adds. “David Droga, [founder of New York advertising agency] Droga5 and arguably one of the most creative people on the planet, formed a collaborative partnership by seeking out a company that could make the ideas work for clients, starting with technology and systems. Choosing a consultancy whose initial touchpoint with the brand is at the highest level and includes knowledge of the business, its systems and its manufacturing processes, the advertising agency adding its creative spark means that there’s no limit to what can be achieved.”
McDowell says an entire business model can be built around the understanding of the systems and the barriers and solving these to make advertising work.
“Marketing is no longer an island. It must integrate all the other disciplines within a brand’s business and then integrate the creative agency into the mix. This is why the hottest topic right now is collaboration within the marketing ecosystem. This collaboration is not about merely getting the various agencies working together, but includes partnerships with the client and the various extended teams across all sectors of the business, in order to produce the blueprint and, ultimately, its success.”
The report also finds that one of the biggest challenges facing chief marketing officers is keeping pace with digital and technological change. More than half of chief marketing officers (67%) are reviewing their platforms while 44% are researching technology to help deal with critical skills gaps, including digital, data and analytics. Holding up progress are lack of budget, poor planning, lack of skills, the need for process change and poor communication.
McDowell says there has been a rush to buy marketing technology to enable marketers to retain their edge, with progressive agencies assisting marketers and taking some of their burden off their shoulders by finding ways to work with marketing technology in combination with their own traditionally used technology.
“As the report points out, leading a marketing organisation is not about continually throwing more tools at the team, but rather about finding the ones that add value, while keeping the process as simple as possible. It’s a huge task, and solutions can only be found when the respective heads of marketing, finance and technology get together outside their silos to create real solutions,” she says.
In order to extract real value from marketing technology spend, the AAR report says marketers need to really understand how their company plans to adapt capabilities and design processes before purchasing and implementing new technology.
The AAR report says the effect of collaborative processes between internal teams becomes evident when a marketing ecosystem influences the broader operating system in terms of revenue growth, customer sales and customer relationship management.
“Marketers have to be brave enough to implement – at every level – the solutions that will result in a successful campaign,” says McDowell.
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AdFocus Awards 2022: has client-agency partnering behaviour changed after Covid?
A highlight of the FM AdFocus Awards each year is the Partnership of the Year Award. As proud sponsors of this award in 2022, the Independent Agency Search & Selection Company (IAS) is looking forward to some healthy competition between client-agency partnerships in the marketing communications industry, says Johanna McDowell, CEO of the IAS and Scopen partner.
“Partnerships are not judged on their longevity, but rather on how the relationship between marketer and agency [was] managed over time and what the quality of the relationship is now,” she says. “The AdFocus judges will be looking for great partnerships measured by the work that has come out of the relationship and the results achieved for the brand.”
For a relationship to remain really highly effective, it needs to be viewed like a successful marriage, rather than as a “we’ve been together this long, we may as well stay together” union, she adds.
“It’s about evaluating the relationship regularly in a healthy manner and looking for ways to ignite the enthusiasm that was obviously once shared.”
McDowell says a successful client-agency partnership is a working one in which regular check-ups are undertaken to optimise and strengthen what works. “The evidence that judges will be looking for is the way the relationship functions. How have both parties adapted over the years, and what are they doing now that is novel, invigorating and innovative to keep the connection fresh and inspiring for all involved? Do all participants look forward to the excitement of a new campaign or venture together, or are some gritting their teeth and hanging on to a relationship purely because it’s lasted a long time?”
In sickness and in health
According to McDowell, what has become an important indicator of the quality of a relationship is how client and agency adapted during the pandemic. “Two years ago, judges examined how parties were coping during Covid. Now that we’re through the worst, it may be time to add a component to this year’s entries regarding what happened during that difficult time and how well the relationship has grown through that two-year period.
“What did the agency and the client do to ensure they didn’t just struggle through but forged a deeper bond and looked for new ways to address a huge new issue together? How is the union positioned now, and how well is the brand doing?” she says.
As with any relationship, she says longevity is the by-product of good housekeeping and honesty, particularly if all parties feel the richer, and not the poorer, for the alliance they have built up.
“As sponsors of the award, the IAS looks forward to seeing which teams found opportunity in adversity and strengthened their ties,” McDowell says.
Read online here
Integrators and relationships: what CMOs are looking for from agencies
Marketers are spending 50% of their budgets on brand building and 50% on sales activation in the digital arena. This is according to the Agency Scope 2021/22 research from interviews with more than 3,000 key-market CMOs globally.
Previously the impact of Covid19 on digital growth was highlighted.
One integrator as a driver
CMOs have realised that platforms such as Google and Facebook do not necessarily help strategically but are good value tactically. Agencies, however, have become even more important from a strategic point of view and are valued as strategic partners when they can advise on the best use of various platforms.
Scopen Africa Partner and CEO of the Independent Agency Search & Selection Company (IAS), Johanna McDowell, says that CMOs across the globe want to work with specialists in the digital space, realising there’s much more to digital than just content and performance marketing.
McDowell says marketers also recognise that they must have one agency within their ecosystem that is an integrator and helps the CMO to integrate all the different functions of each participant in the system, bringing these together in a cohesive way.
It must be clear that this integrator should not be seen as the driver of the eco-system; but rather as the facilitator that ensures the right agencies are in place to meet the strategic plan.
As McDowell suggests, this may not necessarily be the creative agency. In the past, this task was often given to the media agency, which may be a solution worth taking into consideration.
Scopen data shows 49% of CMOs globally have a lead agency, which could be any of a company’s agencies but must have the ability and acumen to consolidate the functions of a whole group and have them work as a cohesive unit.
Key disciplines under the spotlight
In analysing and tracking more than 6,000 marketer-agency/partners relationships across the world, Agency Scope 2021/22 sees the order of marketers’ key discipline requirements now being:
· strategic planning (57%)
· creativity (48%)
· digital strategy (44%)
· media planning (39%)
· research (34%).
When seeking the ideal agency partner, both strategic planning and knowledge have grown in demand.
Reviewing new business activities in the post-pandemic years, McDowell says CMOs now want more face-to-face meetings than online and, while video calling may still be used for agility and speedy conversations, preference will always be given to meeting in person.
Integration high on the list
As mentioned in previous highlights, clients are generally satisfied with their agencies. However, if they are going to go out to pitch, they now have integration high on their lists and will look to ensure the incumbent agency is able to be effectively integrated into the mechanics of the client’s current organisations.
Agencies should note that when a CMO is looking for an agency, they will always ask how well that agency will be integrated into their ecosystem. It’s not just about the great creative idea or an agency being brilliant in the media arena – it’s become equally important to respond to the CMO’s key question: “How well will this agency partner with my organisation?”
Another key area of interest highlighted in the Global Trends Masterclass is the importance of case studies when a marketer is looking for an agency.
Ability to troubleshoot
However, these are not just to enable the marketer to see the work the agency has done – what today’s CMO is looking for is the ability to troubleshoot, so they’ll be looking at problems that the agency helped the marketer to solve, and how they solved them.
Finally, the digitally-savvy CMO wants agency partners who can understand data, manage it, and integrate it. If this is beyond the ability of the agency, the partnership won’t work.
As marketers continue to seek the best ROI from their investment in agencies, stand-out companies that bring creative innovation; market, client and brand knowledge; and strategic planning will likely make the cut. However, should this be packaged with integrated services offering and digital capabilities, the CMO may well have a winner.
Optimise your marketing ecosystem for best results
In this age of adaptive marketing delivering the right message at the right time on the right platform is key. Right housing, or the management of the increasingly complex marketing ecosystem, is vital to the success of leading customers through the sales funnel.
In this age of adaptive marketing delivering the right message at the right time on the right platform is key
Previously we looked at how having the right marketing ecosystem is needed to reach top marketing results, and the Covid-19 pandemic has led to a revolution that allowed marketers to do that.
Now we examine how do you start right housing... and get it right?
Right-housing not only requires that marketers review their internal and external capabilities, but also those of the agencies they currently work with. Getting this right requires an investment in creating a working model that is dynamic and can be built and re-built to suit a market that demands flexibility.
For a solid foundation, marketers must identify their core strengths and weaknesses; examine their company culture and make changes where required and determine their key goal and what needs to be done to attain it.
Take note of what others are doing
There’s much to be learned by noting what other organisations are doing to blend internal and external capabilities across the layers of the marketing ecosystem, including which they tackled first and why.
Michael Storey, head of creative and branding at Ocado in London, is quoted as saying: “An impartial resource to help with designing and resourcing our marketing structure would be a super helpful plug-in.”
Impartiality in design is important because of the complexity of right housing - if some agencies in your blueprint aren’t effective, you stand to lose financially and reputationally.
Right-housing means improving performance over time, learning quickly what works and what doesn’t. Having the right analytics to determine this will generate robust – and cost-effective - decision making.
Balancing internal and external
According to the AAR Group’s Right-Housing for the 2020s, “To find the right blend of internal and external capabilities, you first need to break down the Jobs To Be Done across every layer of your marketing ecosystem; including how you Think, Create, Trade / Buy, Adapt.”
Some marketers may prefer in-house solutions with marginal outsourcing, but creating a strategy with the end goal in mind may require a transformation in thinking and different building blocks for success.
To influence the entire consumer experience requires communications, creative capital, agility and the ability to put data into action. Right-housing these functions means briefing the lead, PR, digital, BTL, ATL and all other agencies to ensure their specific disciplines add value and do not overlap with other providers.
External agencies will have to pass the marketer’s litmus test, which should include determining their precise specialities and ability to help your business connect better with current and future customers; their willingness to understand and participate in your growth agenda; and their ability to add innovative solutions to your business.
Adaptive layers for new-era marketing
You’ll note as you drill down through each layer in the ecosystem, more questions appear and your right-housing architecture shifts. The process requires strong, hands-on management and the ability to create a model that may need several re-builds when new information appears.
Adaptive marketing is here to stay, and your systems and teams should facilitate it.
Therefore, throughout the process, it’s vital to remember your creative capital. Each of the building blocks of right housing comprises people who will make sure their block fits in with all the others – or not.
Today’s marketing ecosystem must be adjustable and resilient, shifting at the pace set by the combined layers of traditional and online business. Some shifts may be more radical than others, but the house that is still standing after the challenges of Covid-19 and a depressed economy is also likely withstand most other stumbling blocks.
IAS Agency Credentials award once again part of the prestigious Assegai Awards for 2022
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 host 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 Assegais, as their sphere of influence increases into the African continent. This coincides perfectly with the IAS’s recent expansion into other parts of Africa,” concludes McDowell. The closing date for entries is 31 August. The IAS Agency Credentials Award falls under the Honours category. All details can be found on the Assegai Awards website: Entries – DMA Assegai Awards.
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.”
The Assegai Awards are hosted in association with the Direct Marketing Association of South Africa. A DMASA Assegai Award is a mark of victory in direct marketing excellence. Johanna McDowell will also be a judge at this year’s awards acknowledging entries that deliver exceptional results.
The DMASA has been hosting Southern Africa’s premier integrated IDM awards annually for the past 24 years. The Assegai Awards annually showcase the direct marketing industry leaders who have delivered exceptional work over the previous year. Exceptional campaign results will be showcased and rewarded at the upcoming awards evening.
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 re-ignite the IAS Agency Credentials Award in 2020, first held in 2016 in collaboration with the DMA Assegai Awards for integrated marketing excellence. In partnering again for the third consecutive 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 (DMASA) 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 only their creativity.
“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 10 November 2022, the format of the awards will be an exciting affair with a full gala dinner to be attended in person 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 Assegai’s with the IAS, as the IAS experience with credentials creates a win-win situation for all stakeholders which is key.”
#MasterclassNotes: Evolving role of the intermediary
Sometimes a pitch isn’t the answer, writes Johanna McDowell.
At a recent agencies-only masterclass, we discussed the role of intermediaries in the industry, locally and globally, which has become much more than just pitch consultants*. Yet we — the intermediaries — do much more than pitch management work and it’s important for both marketers and agencies to see how our role has changed.
In the chart below, the top line indicates the situations that a marketer might find themselves in with their agency or agencies. The left-hand column indicates the type of interventions available and then how they could be applied in the various situations.
Source AAR Group, UK
Some of the other work conducted by intermediaries includes:
Change management within a brand’s marketing operations
Identifying the right blend of internal talent and external partner relationships
Driving performance across a brand’s marketing eco-system
Auditing and benchmarking the relationship between brands and their agencies
Auditing tech, media and digital performance
Advice on agency remuneration structures and compensation, and
In the best relationships, we’re a trusted advisor to the CMO
The answer, therefore, may not always be a pitch
Consultants have resources, insights, data that can help with organic growth opportunities. But, in the event of a new business pitch, what is best practice for agencies?
Here are some tips for agencies on great new business behaviours:
Enthusiasm, authenticity, proactivity and going the extra mile
The team, not a team, preferably The A Team
Do your homework and desk research on the individuals and the company
Ask questions to which the answers can’t be found through desk research, and which only the client can answer
When did active listening go out of fashion? Never!
Don’t be wedded to the presentation deck — be prepared to just have a conversation; respond to unexpected questions
Share your struggles and losses
It’s OK to say no but, please, say it early
Know what opportunities your agency is right for and, therefore, when another is more appropriate than you
Lose gracefully and be open to learning from the loss
Ways of helping
In the ever-changing world of marketing and advertising, the role of intermediaries has certainly had to adapt to find ways of helping both marketers and agencies navigate the complexities of the industry. I’d like to believe that our role has increased in importance in the past 15 years in South Africa as the industry matures and becomes ever more sophisticated.
*I must add here that we’re very proud of the fact that we’ve been voted the Best Pitch Consultants in South Africa for three consecutive years in the annual MarkLives #AgencyLeaders Most Admired Poll!
Right ecosystem needed for marketing revolution
Having the right marketing ecosystem is needed to reach top marketing results, and the Covid-19 pandemic has led to a revolution that allowed marketers to do that.
The right team
Part of the revolution involves ‘right-housing’, the process of reviewing your internal and external capabilities as well as those of the agencies you currently work with, to determine overlaps and efficiencies.
According to the Independent Agency Search and Selection Company's (IAS) UK partners, the AAR, 98% of CMOs agree that having the right marketing ecosystem in place is essential to achieving business-critical marketing goals.
South African marketers are on average working with 13 marketing partners, as shown in the Agency Scope 2021 study conducted by Scopen. However, the cost of Covid-19 was not only financial – it has left various departments understaffed, resulting in pockets of inefficiencies.
Marketers must take the lead
To mitigate this, a rigorous and unemotional audit is required. Right-housing is designed to strengthen your efficacy in the market by creating a new ecosystem that focuses on future-proofing your business while simplifying structures to shed excess costs.
Marketers must take the lead in right-housing, starting with absolute clarity on which agency performs what tasks - even more important now with the added complexity of including Google and social media partners in the mix.
It is, I believe, the kick-off point and is important enough to bring in specialists to assist. If you are right-housing to ensure the longevity of your ecosystem, doing it right the first time is imperative.
The job to be done by right-housing
In working with marketers and agencies over the years and studying how an ecosystem needs to adapt to non-negotiable brand requirements, the IAS is mindful that a strong brand is one that influences every part of the consumer experience.
This requires communications, creative capital, agility, and flexibility as well as the ability to collate data and turn it into action. Right-housing these functions means briefing the lead, PR, digital, BTL, ATL, and all other agencies to ensure their specific disciplines add value and do not overlap with other providers.
To combat inefficiencies, the brief must be crystal clear. Once each task is housed in the right place for the job, the result must give the client more control over the speed of delivery, quality of work, and value for spend.
A significant shift
It’s a well-known fact that the strongest brands are those where there is an obsessive focus on the customer, and all agency activity is pulling in the same direction. In an industry already very different from pre-Covid-19 times, we can’t afford to do a spring-clean and call it right-housing.
The old model of a structured marketing calendar is redundant in a world where change is as fast as the click of a mouse. The time taken from brief to completion is quicker, and the cost to client must be based on a genuine return on investment in a tightened-belt market.
The ecosystem must change and, likely, yours is also undergoing a significant shift. Get expert talent auditing assistance where necessary and – importantly- any time you hear, “but we’ve always done it that way”, run.
Output-based costing: An alternative to billable hours for agencies?
Are the age-old billable hours starting to give way to the rise of output-based costing? It might be the case.
An insight from the 20th AdForum Global Summit held in May 2022 is that the internal agency management system, which has been used in the past 15 years to invoice clients has been in the doldrums for too long and that many agencies and marketers are keen to find new ways to manage costs.
They are therefore open to change that will be of benefit to both parties.
Simplifying deliverables and cost structures
Maintaining a successful marketer-agency relationship and meeting procurement requirements relies quite heavily on agreeing on fair remuneration for the work the agency does. Output-based fees are calculated on delivery of different elements of work such as cost per campaign, or cost per TV advertisement.
The key to the success is a good, solid scope of work enabling agencies to cast the budget more accurately over a 12-month period.
Agencies describe each marketing activity and attach deliverables and costs that are agreed upon upfront and can even include the generation and analysis of data across brands, markets and regions.
The output-based process means that the agency can resource the right people in the right place at the right time, and the entire procedure delivers fairness.
Marketers who have adopted this method have quickly seen the value in working this way, and intermediaries like the IAS support the introduction of this process wholeheartedly.
The same holds true for the procurement department in large corporates, which can recognise the system as sustainable and see the benefits offered over resource plans and billable hours – a system which has in many cases been problematic for the client and for the agency concerned.
Proper prior planning...
Looking at asset-based pricing and determining the content of a campaign upfront involves extra time at the outset of the relationship, but saves time, money and financial concerns throughout the project.
A client can determine what they would like to do with the budget they have and the agency can fit those assets into the plan – it’s a win-win solution that leads to a far better relationship where there’s no room for mistrust.
Everyone knows what they’re in for and can plan accordingly.
By creating an outline of what the next 12 months will look like, both parties can agree on costs and then gradually populate the framework, knowing how much budget is available over the coming months.
Our research and insights from AdForum Summit show that there are several extremely successful agencies working this way, so clearly it is both possible and desirable and can result in a much more robust business relationship between the two parties.
Beyond advertising: matching the seismic shift in the needs of marketers
Perhaps the overarching lesson from the 20th annual AdForum Worldwide Summit held earlier this year in New York is that the advertising agency as we know it has morphed into the a brand-experience company, in a process that has grown beyond flighting ads and holding thumbs to providing not just a digital component, but a whole experience.
Ad agencies have rapidly had to tool up and become more than ad campaign generators. Importantly, an agency with “the big idea” is more vital than ever before – but must now create a business experience, a transformation experience and a whole new way of engaging consumers.
This seismic shift beyond traditional agency norms was my most significant takeout from the AdForum summit. It also raises the potential argument about what we need to overcome in SA, and the belief that marketers here are not ready and don’t have the budgets required to embrace the full brand experience.
It’s not about huge budgets, though. It’s about agencies being able to fulfil what’s required to offer the full brand experience and be responsible for every part of a campaign’s journey. For agencies to succeed now, they must be prepared to disrupt the status quo and expunge “how we’ve always done it”.
Today’s marketers are looking beyond one-dimensional organisations to get the multidimensional campaign results that are possible. To stay relevant, agencies now have little choice but to become – or hire – experts to deliver the full brand experience.
The notion that marketers may be cautious is not incorrect, nor is it unexpected in a rapidly changing landscape. Agencies can engage them by communicating the current options and exciting possibilities. Our experience at the Agency Search & Selection Company is that proactive clients and agencies are collaborating continuously to stay ahead of the curve.
We are, however, still seeing agencies that may be reticent to propel their clients or show them what’s possible, leaving the door open for a confident, evolved agency to bring the big idea and the strategy to a client and win the clients over.
The transformation of our industries, along with digital marketing and the educational drive this requires, will allow those agencies that are able to partner with a marketer and tackle a whole new set of challenges together to rise to the top.
Marketers will continue to be attracted to agencies that are able to look into the future and bring fresh thinking to brands able to deliver a full experience.
You may also be interested in ready Challenges for CMOs are opportunities for innovative agencies
Agency Scope China 2021/22: Marketers more and more likely to work with agencies based on a project model
SCOPEN has just finished a new wave of their AGENCY SCOPE Study in collaboration with R3, a renowned global marketing consultancy in China. COVID-19 has accelerated processes, with one of the most relevant changes being marketers’ commitment to Innovation and Digital Transformation. “Being closer to Digital Platforms will help agencies to be perceived as companies better prepared to work with brands” says César Vacchiano, president and CEO at SCOPEN, ”Competition is high, and all strategies that help marketers to reinforce the position of their brand and connect with their audiences, will help enormously when it comes to retaining clients, and winning new accounts”.
AGENCY SCOPE CHINA 2021/22 is the ninth edition of the study in the country, which is also conducted in 11 other markets, enabling us to include global benchmarks in key criteria. In this edition, we interviewed 396 professionals from 208 leading companies that operate in the Chinese market with 670 client-agency relationships analyzed. The fieldwork took place between August and December 2021.
The primary value of AGENCY SCOPE is to provide subscribing agencies, and other communication partners, with first-hand information regarding the needs of their existing and prospective clients. This report provides them a unique tool to improve and supply new services as it covers the main findings and trends in the communication and marketing sector and more specifically, the perception and image of their company in comparison to all other agencies and communication partners that Chinese marketing professionals work with.
87% of marketers pitch to select a new agency
‘Pitching’ is the most frequently used method to select a new agency/partner (87% -decreased more than 5 percentage points when compared to 2020) and has a higher importance than in any other country where this study is carried out. In other countries, such as India or Spain, ‘International decisions’ are higher than the global average when selecting a new agency.
‘No Pitch’ (global decision) is in second position (8.4%), followed by ‘Workshop / Chemistry Session’ (7.4%). ‘Selection by credentials’ (5.9%) and, ‘Help of external consultants’ (3.0%) are less mentioned.
When marketing professionals identify decisive criteria used to select a communications agency, the 3 most mentioned attributes are: ‘Integrated Services Offering’, ‘Strategic Planning’, and ‘Creativity-Innovation’. Less decisive factors when selecting an Agency, are ‘Agency rankings’, ‘Awards won by the Agency’, and ‘Multiple locations of the Agency in China’.
The marketer-agency relationship model is mainly based on projects
More than half of marketers have a relationship model with their current communication agencies based on ‘Projects’ (54.4%), followed by a ‘Framework Contract’ (42.1%, new in this edition of the study), ‘Annual Retainer’ (14.3%) and ‘By Commission’ (2.0%). If we make a comparison with the last edition, there are more marketers that work with agencies based on Project based relationships (46.0% in 2020).
The marketers’ remuneration model with creative agencies in China is different from the global sample. China is above the global average in the number of ‘Project based’ relationships (China: 51.1%, Global: 36.4%) as it also occurs in Argentina, Spain, UK, and India. On the other hand, we find that Brazil, Chile, India, and South Africa are markets with a higher percentage of client-agencies remuneration based on a ‘Framework contract / Annual Retainer’ model.
Client satisfaction with creative and media agencies still has to improve
The NPS index (Net Promoter Score) for creative agencies in China in 2022 is negative (-6.2). However, it has improved from the previous edition (2020 NPS= -10.6). China is placed in 8th position in the NPS index ranking among the 10 countries where the study is carried out (global NPS= +10.6).
Regarding media agencies, the average NPS index in China is -14.5 (in 8th position among 9 countries analysed). The global NPS average for media agencies is +9.7.
China is the most demanding market in terms of client’s satisfaction with its agencies. Even though NPS index has increased in the last two years, the number of detractors is still higher than that of its promoters. The complexity and higher competition of the market means those agencies need to offer more added value (new services, specialties, alliances with other partners …) to achieve higher levels of client satisfaction.
The level of satisfaction with the service provided by the IMC agencies in China has also increased in the last two years (2020 ‘very satisfied or satisfied’: 63.4% vs. 2022: ‘very satisfied or satisfied’: 66.2%), while the international satisfaction benchmark stands at 77.1%.
72.7% of interviewees have no intention to change their current IMC agencies (66.9% in 2020) but in the last two years, the intention to change agencies has increased (‘definitely’ will change or ‘probably’ will change) and is similar to the global average (11.6% of Chinese marketers are thinking of changing their IMC agencies in 2022 (6.3% in 2020, and global benchmark is 13.9%).
Focus on the consumers and the changing digital environment, the main industry challenges
For marketing professionals, the most mentioned challenges are investing in ‘Tools / Measurement / Data / Big Data’ (23.8%), ‘Improve internal resources / Processes’ (20.3%) and being capable of ‘Anticipating trends / Adapting to current times’ (17.3%).
As a global trend, ‘Understanding consumers’ is key in brand strategy as they are better informed and have developed new habits. ‘ROI’ and efficiency are also listed amongst the top challenges for marketers, which can be attributed to a review of budgets, especially in these uncertain times caused by ‘COVID-19’. Data Protection Laws are also of greater concern.
When compared to the previous edition, four concepts have increased dramatically: ‘Tools / Measurement / Data / Big Data’, ‘Improve internal resources / Processes’, ‘Anticipate trends / Adapt to current times’, ‘Branded Content / No intrusiveness’, and ‘Understanding Digital transformation’. Meanwhile, two ideas have been included as new: ‘Better understanding of Digital Transformation’ and ‘Achieving good relationships with more and different partners’.
The desire to differentiate from competitors through creative and innovative campaigns is also a global trend in 2022.
When we ask marketers to identify the main challenges for their agency partners, they mention their need to improve ‘Market knowledge / Understanding consumer needs’ (22.3%). In second place they think they need to provide more ‘Innovation / Creative ideas’ (21.8%), followed by being able to ‘Anticipate trends / Adapt to the environment changes’ (20.3%).
You may also be interested in reading: AGENCY SCOPE CHINA 2021/22: Marketers’commitment to innovation and digital transformation is changing the agencies’ ecosystem in china
Agency Scope China 2021/22: Marketers’ commitment to Innovation and Digital Transformation is changing the agencies’ ecosystem in China
SCOPEN has just finished a new wave of their AGENCY SCOPE Study in collaboration with R3, a renowned global marketing consultancy in China. COVID-19 has accelerated processes, with one of the most relevant changes being marketers’ commitment to Innovation and Digital Transformation. “Being closer to Digital Platforms will help agencies to be perceived as companies better prepared to work with brands” says César Vacchiano, president and CEO at SCOPEN, ”Competition is high, and all strategies that help marketers to reinforce the position of their brand and connect with their audiences, will help enormously when it comes to retaining clients, and winning new accounts”.
AGENCY SCOPE CHINA 2021/22 is the ninth edition of the study in the country, which is also conducted in 11 other markets, enabling us to include global benchmarks in key criteria. In this edition, we interviewed 396 professionals from 208 leading companies that operate in the Chinese market with 670 client-agency relationships analyzed. The fieldwork took place between August and December 2021.
The primary value of AGENCY SCOPE is to provide subscribing agencies, and other communication partners, with first-hand information regarding the needs of their existing and prospective clients. This report provides them a unique tool to improve and supply new services as it covers the main findings and trends in the communication and marketing sector and more specifically, the perception and image of their company in comparison to all other agencies and communication partners that Chinese marketing professionals work with.
Marketers search for specialists in different territories
Marketing professionals interviewed distribute their marketing budget in China as follows: more than half (53.2%) is invested in ‘Brand Building Campaigns’, while the rest (48.8%) is invested in ‘Transaction Driven Activities’ (Performance). Figures are similar when split by size of company (Multinational and Locally Based).
When we asked marketing professionals what type of agency they are currently working with to meet their communication needs, we found that 82.2% of the respondents currently work with ‘Specialised agencies’ in each discipline, 15.6% work with an ‘Integrated agency’, and 2.2% work with a ‘Customised service team/agency by a holding group company’. As for the near future, the figures show a similar trend.
China has a similar profile when compared to other markets such as Mexico, UK, and South Africa (globally 49% of Marketing professionals prefer to work with Specialists and 51% with an Integrated agency), where specialisation is rising year over year “one of the main explanations for this trend is a complex and changeable environment full of new digital and data options which necessitates working with specialists” says Vacchiano.
On average, an advertiser in China works with 25.6 different partners to solve all its marketing-communication needs. Digital Platforms (9.1), Field Marketing Agencies (3.9), Digital & Social Agencies (3.8), IMC Agencies (3.5), Media Agencies (1.8), PR Agencies (1.8) and Divisions of Consultancies (1.7).
Besides, 38.5% of marketing professionals have declared that one of their current creative or media agencies leads all their communication needs. This figure has increased compared to the previous edition of the study (20.7% in 2020). Despite this growth, China is placed below the global benchmark (55.4%). In other countries, such as the UK and South Africa, commitment to leading agencies is higher.
China is the market in which advertisers tend to work with most partners. The more partners you have, the more complex coordination and leadership gets. In China, almost 4 out of 10 marketers (a figure that has doubled in the last two years) identify one of their agencies (creative or media) as the leader of their communication-advertising-marketing
Strategic planning, integrated services, creativity-innovation, and data are key
For marketers, ‘Strategic Planning’, ‘Integrated services offering’ and, ‘Creativity-Innovation’ are the 3 most mentioned attributes to define the ideal creative agency, followed by an expert ‘Professional team’ and the ‘Agency’s previous experience and expertise’. In comparison to the previous edition (2020), mentions for ‘Good professional team’, ‘Agency’s previous experience and expertise’, ‘Research, Data, Tools’, ‘Branded Content expertise’, ‘Digital capabilities’ and, ‘Good value for money / Reasonable Fee’ have increased.
Media agencies stand out in ‘Media Planning’, ‘Negotiation capabilities / Good prices’, ‘Research, Data, Tools’, and ‘Strategic Planning’. When compared to 2020, ‘Media Planning’ and ‘Good value for money / Reasonable Fee’ have increased.
More than ever, ‘Strategic Planning’ and ‘Data’ are key to enable marketing professionals to differentiate their brand/company from competitors to reach more evolved, informed, and demanding consumers. Agencies must meet this creative challenge by offering more and better ideas that communicate with impact.
You may also be interested in reading AGENCY SCOPE CHINA 2021/22: Markets more and more likely to work with agencies based on project mondel
AGENCY SCOPE 2021/2022 wrap up: New insights into the evolution of our industries
“It seems like just yesterday we were learning things about marketers and their agencies we’d never asked before,” says Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner. “Eight years has flown by, and with every AGENCY SCOPE, we’ve watched our markets evolve.”