#BizTrends2024: Johanna McDowell - Agency ecosystem trends that are defining future working methods

To manage marketing and agency ecosystems in a post-Covid world, marketers and agencies will need to adapt and build more flexible models.

IAS founder & CEO and managing partner Scopen Africa, draws 5 conclusions to help agencies and brands define future working methods

As the IAS we are in a unique and privileged position at the heart of the marketing industry where brands and agencies intersect.

We have many conversations with CMOs and agency leaders about the marketer agency ecosystem as we help all participants work together to deliver effective marketing that will drive growth.

One of the biggest surprises and learnings from the Agency Scope 2023/2024 study, the results of which are currently being presented to various industry players, is the growth in the number of agency partners/platforms that a CMO interacts with. On average this number is more than 15.

When I look at a recent report from our partners, AAR Group in the UK, they have identified in more detail which types of partners these 15 are and have tabled that growth from what was more usual less than 10 years ago when the average number of partners in a marketing agency ecosystem was five.

Fluidity and flexibility

This trend on its own requires much closer examination.AAR talks about fluidity as well as flexibility and they comment on the fact that the growth in this has happened for both individuals in how they work and for brands in the number of specialist agencies that they have the option to work with.

A lot of this fluidity has come from the opportunities that were created during - and because of Covid - when working from home or remotely meant that companies had to build in more flexibility into their businesses and this then became the new normal.

For brands, this also created a fragmentation of their customers and an evolving media landscape that required an increased number of marketing specialists to create successful marketing campaigns.

What we have seen already is that great talent no longer wants to live exclusively in a world of permanent agency roles. It seems that fluidity and flexibility are here to stay.

The focus is on accessing talent regardless of where it chooses to work.

Agencies: Following the trends

The agency ecosystem is evolving to follow these trends so that brands can access a greater number of specialists either via an open talent network through increased agency contacts or within a holding company offering.

With economic uncertainty now cited as one of the most fundamental reasons for the need for a more flexible marketing ecosystem, clients are less able to commit long-term to having large teams available plus they now wait longer before approving projects in case of last-minute impacts on their side.

This means that the need for freelance vs permanent staff goes up.

Not easy for agencies to manage without building in far more flexibility – and yet perhaps capitalising on the benefits of a more fluid talent pool.

Management of the increased number of partners

There is no simple formula to lay out what agency ecosystem is best for a brand.

Scale and business category are two of the biggest factors in defining how many partners a brand will best work with. And whether the brand will command and control all of the specialists or if one of the agencies in the system might be better suited to integrate of the different resources.

5 conclusions to help agencies and brands define future working methods

The debate will continue throughout this current decade in our view, and we draw a few conclusions now that may help brands and their agencies define future working methods:

1.     Brands will have the appetite to increase the fluidity of how they build their internal and external capability.

2.     More systems are now in place to allow greater access to more specialists and build them into the marketing ecosystem for a brand. If brands are not doing this they may well be missing out.

3.     There is not a one-size-fits-all solution. The right agency ecosystem changes according to marketer capability, category, scale and culture.

4.     The need for media-neutral leadership that puts the brand’s customer first has priority over the remuneration or leadership of one type of agency.

5.     Agencies need to leverage freelance expertise from a skillset and economic point of view, but without losing the culture and passions of the agency itself. The industry has been built on the differentiation of groups with different expertise and points of view - these key attributes need to be maintained for a sustainable future.

What this has meant for the IAS, is that, increasingly, marketers are seeking our counsel when it comes to simplifying their ecosystem structures without losing any of the benefits of the increasing need for specialisms.

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#BizTrends2024: César Vacchiano - Sustainbility and DE&I will gain relevance

Two trends, already huge in the US and the UK, that will gain relevance in the rest of the world are sustainability and Diversity, Equality and Inclusion (DE&I).

Two huge trends in the US and the UK that will gain relevance in the rest of the world are sustainability and DE&I says César Vacchiano, president & CEO at Scopen

Our industry will increase its focus on sustainability, and reducing its carbon footprint.

This affects all - brands, agencies, and media owners - and they are starting to calculate carbon emissions, establish positive impact initiatives and identify the most sustainable partners.

Companies that demonstrate their sustainability will grow more in the coming years.

DE&I are the other huge objectives in our industry. Agencies are showing how they are focused on solving this issue in their credentials.
Brands win more and more awards with campaigns that show their commitment to achieving these objectives.

Awards now have very balanced positions among jury members, and the Jury Presidents of different categories show just how diverse our industry is.

Artificial Intelligence

When 2022 was coming to an end, everyone in our industry was thinking about Artificial Intelligence (AI), and it certainly proved to be the hottest topic in 2023 - and will continue to be in 2024.

Nearly 50% of marketers in South Africa (and other countries) believe this is one of the biggest challenges for agencies.

One year ago, we were feeling a mixture of sceptical, worried and, especially, uncertain, about what AI would mean for our industry.

Today, we are all more aware of the opportunities and help AI provides when properly used.

As with all new technologies, it requires understanding and training, and the best output comes when experts use it, and creativity is amplified.

Agencies have invested in creating security walls and training their teams in legal issues, and now AI is being used as a practical and useful tool to save time on mundane tasks.

It is already utilised to produce and distribute content at scale, quickly explore creative territories, and help clients refine briefs.

AI will increasingly also bring benefits for clients, especially efficiencies.

Growth of digital investment

Understanding and engaging with consumers is becoming more and more complex since we are all distracted, watching multiple screens.

The ability to connect with Gen Z is even more complicated, especially when encouraging younger audiences to engage with brands.

Brands are investing less in Paid Media in favour of organic strategies. The creation of precise and creative content is becoming crucial to reach specific targets (particularly Gen Z).

The growth of social media, influencers, KOLs… etc. is highly impressive.

Digital investment is approaching 50% of brands´ total investment. And 30% of that Digital investment is going towards social media and Influencers.

Consumers are increasingly relying on influence. Influencer specialist agencies are growing fast, not only working with brands but also closely with influencers, becoming their agents and advisors. Influencers represent a large percentage of their income.

Agencies trends

Marketers want ideas coming from any type of company they work with.

Globally marketers work with 15 different partners to solve their communications needs (five of those being digital platforms).

Orchestrating those partners is becoming more and more complex, which is why we see an increase in the significance of leading agencies.

A Lead Agency is not only an agency that comes up with the big ideas; it is the agency that identifies insights and builds solid strategies that become the base to create those solid ideas.

Marketers are increasingly considering Strategic Planning as the most important skill when selecting agencies and defining the ‘ideal’ agency.

Media agencies keep reinforcing their position in this territory, which is easy for them due to their strengths in research, data and analytics, combined with the economic resources to hire the best planners.

Marketers trends

More than 70% of marketers invest in and use marketing tools.

Salesforce is the leading tool, and, with 40%, Adobe Marketing Cloud is the runner-up.

Using these marketing tools is a challenge for marketers and, once they have them, they do not know how to use them properly.

This is a big opportunity for agencies, who can help their clients in the use of these tools and more and more agencies have certified employees to help brands.

When reflecting on these trends, we realise how agencies are reinforcing their capabilities, leading to a dramatic increase in the contribution to their clients’ growth, and how all companies operating in our industry are focused on building a better world.

Gradually, we will achieve it. The talent and passion in our industry are difficult to find in others.

You may also want to read #BIZTRENDS2024: JOHANNA MCDOWELL - AGENCY ECOSYSTEM TRENDS THAT ARE DEFINING FUTURE WORKING METHODS

Scopen announces SA’s top 10 most admired marketing professionals

In November last year, Scopen announced the top three marketers. Now the full Top 10 have been shared.

The top 10 most admired marketing professionals in South Africa:

1.     Khensani Nobanda, Nedbank

2.     Sydney Mbhele, Absa

3.     Vaughan Croeser, ABInBev

4.     Doug Place, Nandos

5.     Nontokozo Madonsela, Momentum/Metropolitan

6.     Firoze Bhorat, Discovery

7.     Thulani Sibeko, previously Standard Bank

8.     Chantal Sombonos-Van Tonder, Chicken Licken

9.     Abey Mokgwatsane, Investec

10. Sadika Fakir, Absa

“My congratulations go to these top 10 marketing professionals. While accolades from industry bodies are always welcome, there’s little to beat a jury of your peers naming you their top-rated professionals,” says president and CEO of Scopen Global, Cesar Vacchiano.

He adds, “In naming the most admired marketing professionals as rated by both marketer and agency professionals, I must highlight that this was entirely spontaneous, with no prompting whatsoever from researchers.”

Information included in Agency Scope 23-24 covers companies noted for their marketing initiatives, and campaigns that achieved peer recognition, including the best marketing campaign as well as the best agency to work for and the most ideal client to work with.

Valuable data for all sectors of the industry

In response to the immense interest around the upcoming Agency Scope 2023/2024 results, Vacchiano says: “The excitement for the 23/24 Agency Scope results has been more than heartening to note, with 315 marketers interviewed, representing 220 brands compared to 235 interviews across 158 brands in 2021 – a marked increase in participation.”

He adds that the 200 agency professionals interviewed, comprising 155 creative and 45 media agencies along with 16 media owners solidifies Agency Scope as “among the most valuable data for all sectors of our industry”.

During his time in South Africa, Vacchiano presented confidential reports to some of the agencies that had already subscribed to the study, giving local and global insights into what the country’s top marketers think about several issues and how this drives industry change and growth.

More presentations to agencies will take place in the coming months.

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#AgencyScopeSA Part 2: Longer client-agency relationships produce great work

On his recent visit to South Africa, president & CEO at Scopen, Cesar Vacchiano shared insights from the latest Agency Scope in South Africa.

The research shows that SA is a little behind in certain areas.

“CMOs are not always up to date on what is happening in their industries. This makes them uncomfortable in making decisions and investing into new products. Because CMOs are behind, their agencies tend to lag as well,” says Cesar Vacchiano.

A key area where this can be seen is retail media, in particular with modern retailers and marketplaces, such as Amazon.

“Instead, this is being driven more by retailers themselves, who are implementing big changes. Checkers is an example of a brand that has evolved and moved into that space, reinforcing it as a brand enormously in a very short period of time,” explains Vacchiano.

However, Vacchiano says, SA is one of the countries where we see great creative talent and SA agencies are winning internationally, such as at Cannes, and this includes both big legacy agencies and young independent agencies.

SA a hub

So much so that the country is becoming a hub for solving certain needs for clients based in other countries. These include not only sub-Saharan African countries but in the UK and other English-speaking markets. This is because local agencies combine two competitive advantages: talent and experience as well as sometimes including competitive cost and pricing.

Same room equals bigger ideas

That said, clients want more and more for their agencies to be in the same city as they operate as they realise just how important it is to work with their agencies live rather than remotely. The bottom line is that being in the same room produces bigger ideas.

Less inhouse, more outsourced

The good news for agencies is that marketers are trying to solve less needs in-house.

Inhouse, across all disciplines, is decreasing, mainly because clients have realised just how difficult it is to identify, attract and retain creative talent.

“Creative talent is not happy working with the same brand and the same challenges every day. They prefer to work with different sectors and categories and challenges within these. They need to be inspired, to attend festivals and awards and participate as jurors, and that does not happen if they are working in a client company,” says Vacchiano.

The people with more technical profiles, such as programming, software, etc. clients have realised they need to invest heavily in training of people with more technical profiles to keep these profiles updated but they are not good at training their employees.

Big corporations and companies also want to reduce their headcount, so the more they can outsource the better.

Longer relationships

Client-agency relationships are longer.

“It was caused by Covid, but also because clients and agencies understand that longer relationships produce a better understanding and more confidence in each other. They know that working on an ongoing basis with their agencies allows for sharing thoughts, strategies, data, and learnings and how this produces good work,” explains Vacchiano.

There are fewer project-based relationships and when we do find these, they are mainly independent agencies and smaller client companies.

How CMOs want to work with agencies

Brands on average work with 15 different partners in SA, choosing one agency to be the lead agency. This is generally an agency that is a strong partner in creativity - the one that produces the big ideas.

CMOs also want to work with agencies that can solve all their needs. “Integrated agencies are difficult to find as they need the best talent in a variety of disciplines, but it is a challenge to identify, attract and retain that talent,” says Vacchiano.

He adds that 50% of clients want to work with a specialist.

At the same time, CMOs want agencies to share clients, with different teams working on one brand.

“Agencies have different types and levels of expertise as well as an understanding of a category and discipline, such as B2B. social, etc. Clients know this and want to tap into this, regardless of the agency,” says Vacchiano.

Awards for inspiration

During Covid agencies could not attend festivals and awards, now they attending these again.

“Attending these inspires creatives and they learn what is happening internationally and in other sectors, and that is inspiring for them,” says Vacchiano.

He adds that clients use awards as a reference when choosing agencies.

AI and its benefits

“Agencies will benefit from AI to work faster and save time as well as save in cost. They are starting to understand that used in a good way, in that AI can produce certain benefits in our world of marketing and communications,” says Vacchiano.

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#AgencyScopeSA Part 1: CMOs want integrated agencies and other key findings

On his recent visit to South Africa, president & CEO at Scopen, Cesar Vacchiano shared insights from the latest Agency Scope in South Africa.

This year Agency Scope interviewed 528 professionals - more than in previous surveys - of which 312 are marketing directors (CMOs, digital directors, media directors, etc.) and 220 were companies.

“We are very proud of these figures because it was a challenge to interview so many companies and professionals,” says Vacchiano.

Location, location

The South African market is concentrated in Johannesburg, with two-thirds of the companies interviewed based there, and 20% based in Cape Town.

“Johannesburg has grown since we started the study in 2016,” says Vacchiano.

Led by women

Of the marketing directors interviewed, 70% are women. The global average is 55% women, so the SA market is women-led.

Where is the money going

The investment into marketing and communication per R100 of client sales has declined from 2022 to 2023. For every R100 a client sold in 2023, they invest R3.5 into marketing and communications.

In 2022 this figure is R4.2. The decline is happening in all markets because of economic conditions.

The budget is split into:

·        Above The Line (ATL)/traditional: 38%

·        Below the Line (BTL): 27%

BTL has recuperated a little bit after Covid as clients invest more into experiential, promotions, activations, and events.

Of this investment, 35% is going into digital. In SA digital investment is still going mainly to digital paid media.

"While social media is increasing, it is still around 23%, whereas in other markets globally it already sits at 30%.

"Social media influencers are quite low in SA but growing fast. E-commerce and marketing automation represent only five percent of investment in SA, (other markets are up to 10%)," says Vacchiano.

15 different partners

A very important figure is that brands on average work with 15 different partners in SA of which five are digital platforms, that is Google, Meta, TikTok, Amazon, etc.

“For context, in China this figure is 25, in the UK it is 17. Bigger markets, such as the UK, where many original global campaigns are produced, have more partners. SA is not far from the UK figure,” says Vacchiano.

As this becomes increasingly complex, a key challenge for CMOs is orchestrating all these partners to collaborate.

A lead agency

One way to do this is to choose a lead agency. In SA 66% of marketers work with a lead agency.

“One of these 15 partners assists in coordinating all the other partners. It is normally an agency that is very strong in strategic strategy, defining the insights to give the brand strategy,” explains Vacchiano.

The lead agency shares these ideas with the other partners, especially the ones in other disciplines, who then implement these ideas.

Integrated agencies

The many challenges in different areas mean marketers want more and more integrated agencies that can solve their needs under one roof. “It is difficult to find an agency with the best talent in a variety of disciplines because it is difficult to identify, attract and retain that talent,” says Vacchiano.

He adds that this is especially so in different verticals in digital as CMOs know e-commerce social media, influence marketing, search etc. requires specific expertise.

Competition: a thing of the past?

Forty percent of clients do not care about competition. “This is a change from the past, and is driven by Accenture Song and other consultants, that work with many brands in the same category,” says Vacchiano.

This is an argument for agencies to also share clients, he explains, with different teams working on one brand.

“Agencies have different types and levels of expertise as well as an understanding of a category and discipline, such as B2B. social, etc.”

PR more important

Within the integrated agency, media and PR are becoming more important. More marketers want closer relationships between media agencies and creative agencies and because of social and digital media, PR is also becoming important in that integrated offering.

These clients are looking at PR agencies, whether they are experts in an agency or freelancers, to solve their PR needs. The more integrated PR is in the different partners they work with the better.

“This PR is not traditional PR; it is influence and social media, and especially digital PR that clients believe needs to be embedded in the thinking and strategy that their agencies are presenting from the beginning,” expands Vacchiano.

Awards are important

Awards are becoming more important for marketers as part of their yardstick for selecting agencies to work with. CMOs want to work with agencies that produce big ideas and awards are a reference for them.

AI and automation tools

Marketers are using more and more different marketing automation tools, with 73%, or three out of four marketers, which is quite big, using these tools. Forty-three (43) percent of brands in SA use Salesforce.

Asked about AI, 45% of CMOs stated that AI is a challenge in their own organisations from how to incorporate it into their business and how to benefit from it.

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Key Oberservations and Trends from AdForum London Nov 2023

Here are my key observations and possible trends from the latest AdForum Worldwide Summit, which took place 5–9 November 2023 in London, England. It was a fascinating summit, with many of the best agencies in the world currently.

We pitch consultants met with 20 in total, 10 of which were independents: Accenture Song, Accomplice, Amplify, Anomaly, Assembly, CPB, Dept, Fold7, Iris Worldwide, Kairos, Mother London, MSQ, MullenLowe, Not Perfect, Pablo, Smart Assets, Stagwell, The Beyond Collective, Worldwide Partners and WPP.

#1. Do agency brands matter?

The answer is yes, they do, as long as there are clear differences/differentiating factors that help each agency brand occupy a position. These factors tend to be guided by the history of the agency, its name and its origins, the founders’ way of thinking, and the direction in which they want to take the agency.

This is naturally obvious for the independent agencies — and more on that later. But what happens in the holding group companies?

 #2. Agency brands within the holding companies

What’s next? With the very recent decision by WPP to merge Wunderman Thompson and VMLY&R into VML from January 2024, we speculated on other agency brands within the WPP group and, indeed, in other groups. Will Grey remain a separate brand? What about the media agencies in Group M: will Mindshare, EssenceMediacom and Wavemaker all merge into one? And, as these agencies all move onto one campus, what then will happen?

As a reminder, WPP used to have 38 buildings in London for its agencies; now it has three.

Unwittingly, Accenture Song has paved the way for gradual disappearance of famous agency brands. Its acquisitions globally, including South Africa, have resulted in strong agencies all called Accenture Song, apart from the Droga5 micro-network. Clients seem to have less anxiety over potential competitor conflict in this new environment.

Publicis Groupe increasingly focuses on the Power of One, although retaining some of its legacy brands — for now — and as long as there are real agency brand differences within the group.

#3. Agency methodologies

Clients want to understand agency methodologies more and more so that they can trust the agency to manage the complexities of the client marketing ecosystem.

With so many marketing channels and opportunities, how does an agency harness all of these and, indeed, should they? How does the lead agency model work and how do they bring in additional capabilities?

These are the questions that clients have and that they set before their agencies.

#4. Influence vs influencers

It’s all about influence. We met several agencies in London where influence is a key strategy in audience building and with an emphasis on earned and owned media strategies.

This is an area where some media agencies are starting to play a role; this hasn’t come to SA yet but it’s anticipated that it’ll soon be here.

#5. The rise of the independent agencies

In the UK, there are many very successful independent agencies, as there are here in SA. They are successful for many reasons, going back to point one: clear direction, clear points of difference, agility etc. What clients want to know is:

1. Who are they?

2. What do they do/what are their capabilities?

3. How well funded are they?

4. What are their networks like? Do they belong to any of the independent networks and, if so, why?

5. What is next for them?

#6. Budgets

They’re not increasing globally at all. Yet these budgets have to do more and more, and with an increasing range of channels. The danger of spray-and-pray is something that marketers and agencies fear. It’s also one of the reasons that earned media is becoming more and more important.

#7. Events & activations

These are no longer something to be added on at the end. Agencies now are involved from the beginning and are expected to provide strategy, clear success KPIs and measurements. The return of events after the first few years of the covid-19 pandemic is very noticeable and, provided it’s all ground in data, very effective.

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Part 2: PR Scope Spain: Clients work with communication consultants for longer

Scopen's 8th edition of its PR Scope study in Spain has found high satisfaction levels as clients work with their communication consultants for longer, with relationships increasing from four to five years.

A biennial study which analyses the relationships between communication consultancies and their clients, as well as the perception and image of these consultancies in the market.

For the current edition (2023/24) in Spain, 875 professionals have been interviewed: 441 of whom work for 414 different client companies, 327 professionals from consulting firms and 107 media professionals.

The fieldwork was carried out between March and May 2023.

The average duration of the relationship between companies and their communication consultancies is 4.9 years (4.1 in the previous edition), which represents an increase of just over nine months compared to the previous edition.

Large companies have longer relationships (5.5 years) than small ones (3.6 years). The majority of consulting firms maintain a regular or continuous relationship model with the companies they work with (82%), although this type of relationship decreases compared to the previous edition, while we see an increase in project work (20% vs. 13% in 2021). The average duration of a 'Type' project is six and a half months.

Set fee remuneration

The majority of those interviewed remunerate their communication consultants through a fee set at the beginning of the year (81% vs. 85% in 2021).

Remuneration by project has decreased (22%) but there is a significant increase of the mixed remuneration model by 15% (Fee + Projects throughout the year).

Eight per cent of accounts (with no variations compared to 2021) add a variable portion to the remuneration (a bonus provided at the end of the year to reward the consultant for good results) which represents almost 13% of the annual remuneration (11 % in the previous edition).

Satisfied with service

More than 95% of clients in Spain declare themselves satisfied with the service they receive from their consulting firms, and less than one per cent are dissatisfied. Even so, eight per cent declare they are considering changing their consulting firm soon, not due to dissatisfaction with the service, but, mostly, due to the contract coming to an end.

The recommendation index of communication consultants by their clients to colleagues and friends is 8.5 (on a scale of 0-10).

Contributing to business growth

Companies interviewed consider that their consulting firm contributes, on average, to grow their business by 10%. Although this is a lower percentage than what we find with other agents these brands work with (when it comes to creative and media agencies, the value is close to 25%), if we consider the level of investment and the fees allocated to consulting firms, this is a higher contribution percentage.

Related to this, the ADC highlights, "the growing strategic importance of communication consultancies for their clients, as evidenced in the 2nd edition of the study carried out in collaboration with Scopen on the value they bring to society."

Their general director, Dolores González Pastor, highlights that "communication consultancies are crucial allies for their clients since they provide creativity and a strategic vision, essential value factors to building the positioning and reputation of both brands and institutions".

Challenges

When professionals from client companies are asked about the challenges their companies will be facing in the coming years, the most mentioned challenges are:

·        Knowledge of the consumer and ability to reach them (35%)

·        Strengthening the prestige, reputation and positioning of the brand company (35%)

·        Ability to adapt to new times (21%)

·        Venture more on creativity-innovation (21%).

When it comes to consulting firms, they consider that their greatest challenges strengthening digital capabilities and their ability to adapt to new times, thereby showing their concern for the rapid evolution which is resulting in numerous changes to the functioning of the sector.

Héctor Abanades, research manager at Scopen clarifies, “We´re seeing a more fragmented market, with a larger number of consulting firms. It is key to differentiate from competitors, transferring particular capabilities with real jobs that can demonstrate these capabilities.

Digital (especially Social Media and Influence), creative and content generation capacity, and the capacity for data analysis and interpretation, are the three key areas.”

Consultancies that stand out

To evaluate how communication consultancies are perceived, Scopen groups together the responses of those professionals interviewed (from companies, consultancies and media professionals) and prepares various rankings analysing different aspects:

·        Spontaneous knowledge

·        Exemplarity

·        Attraction

·        Market Perception Global Ranking (taking into account key attributes)

·        Customer Rating Global Ranking

·        Competitor Opinion Global Ranking (by professionals who work in other consulting firms).

The most mentioned in the Top 3 of these six rankings are LLYC, which appears in five of them, leading the Spontaneous Knowledge, Exemplarity and Attraction, Apple Tree which appears in three, leading the global Competitor Opinion Ranking and Havas PR which also appears in three and leads the Customer Rating Ranking. The Global Market Perception Ranking is led, in this edition, by Ogilvy.

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PR Scope Spain: 96% of companies are satisfied with their communication consultants' work

Scopen has just released the 8th edition of its PR Scope study in Spain, a biennial study which analyses the relationships between communication consultancies and their clients, as well as the perception and image of these consultancies in the market.

For the current edition (2023/24) in Spain, 875 professionals were interviewed: 441 of whom work for 414 different client companies, 327 professionals from consulting firms and 107 media professionals.

The fieldwork was carried out between March and May 2023.

Those professionals interviewed in each client company must be involved in the decision-making process to select communication consultants and should be interacting with them in the day-to-day work.

On average professionals interviewed were 43 years old, and have been in their current position for more than 8 years, and in their company for almost eight years.

They are mostly based in Madrid (68%), in foreign multinational companies (50%) and the most mentioned position is that of Communications Director (41%), being the maximum decision-maker in all communication matters, along with other managers (60%).

The sector with the highest percentage of professionals interviewed is Services (51%), followed by FMCG (28%).

The client companies interviewed for this edition of PR Scope Spain invoiced, on average, €276m annually in 2022, a very stable figure, which increased by 2% compared to 2021.

Digital allocated largest percentage of budget

The largest percentage of the budget is allocated to Digital, with a fair balance between Earned Media (40%), Owned Media (31%) and Paid Media (29%).

Investment in Digital, which had been growing in recent years, slows down in this latest edition (53% compared to 56% in 2021).

Within Digital, Social Media is the discipline professionals consider they should work on more with their communication consultants (89%).

César Vacchiano, Scopen’s president and CEO, says, “The challenge for communication consultancies lies in demonstrating to clients that they can solve their needs more creatively, quickly and effectively, and thus be able to grow.”

Preference for integrated consultancies

Most of the companies analyzed (49%) work with consulting firms specialising in various disciplines and 46% do so with consulting firms that solve their needs in an integrated way.

However, in the future, the percentage of clients who declare they would prefer to work with integrated consultancies that can solve all their communication needs is higher (49%, compared to 43% who prefer to do so with specialised consultancies).

The disciplines in which most work is done by specialisation are:

·        Corporate communication

·        Social Media (which has increased in the last two years)

·        Brand/Product communication (which, however, shows a significant decrease)

Selection of consultancies

When selecting a communication consultancy to work with, those responsible for communication continue to resort, for the most part, to pitches (89%).

The selection tools most used when creating a long list are:

·        The work carried out by the consultant (their cases, credentials...) (85%)

·        One´s own experience and personal knowledge of the communications director (76%)

·        Recommendation of friends or colleagues (67%).

It is important to highlight that, in this edition, the importance of practically all declared tools has increased, except good quality/price ratio, which decreases in the number of mentions.
More importance is given to the value and qualification of the consultants, than to the cost.

If we look at the preferred qualities to prepare a long list for selecting consultancies, the most mentioned are the Ability to establish relationships / Credibility in the media, The professionals who work at the consultancy and Strategic Communication Planning.

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IAS agency credentials - 2 gold winners for 2023

The Assegai Integrated Marketing Awards, in conjunction with the IAS (Independent Agency Search and Selection) is proud to announce that two entrants of the IAS Agency Credentials Award achieved the prestigious gold award, namely Ogilvy, and Saatchi & Saatchi.

Although this award was inaugurated in 2016, IAS recently revitalised their relationship with the Direct Marketing Association of South Africa (DMASA), organisers of the Assegai Awards, in order to 'relaunch' the IAS Credentials Award in 2021. The award ceremony took place on 9 November 2023 in Melrose, Johannesburg. Entries were received from creative, digital and media agencies.

Judges included several leading South African marketers as well as international judge Cesar Vacchiano who is president and global CEO of SCOPEN International. Johanna McDowell, CEO, Nikki Munsie, business director and Tebatso Masete, project director of the IAS were also part of the judging panel.

According to Vacchiano: “The judges were quite specific about the criteria and the winning entry certainly displayed evidence of an agency that was clear about their focus and positioning. The credentials entries provided the judges with insight into the agency culture and the successes of the work that they are doing for their clients. ROI was clearly evident.”

Johanna McDowell, founder and CEO of the IAS comments: “We are committed to our partnership with DMASA and will continue to offer the Credentials Award. We would like to encourage more agencies to enter this award in the future because it will give them an opportunity to showcase their agency to the significant number of leading marketers on the judging panel,” concludes McDowell.

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Post pitch relationships: Keep the glow when the real work hits hard

Like all partnerships or collaborations, the client-agency relationship starts as a good fit, then needs to adapt to changes and company cultures to bring out the best in both parties.

The pitching process is much like a wedding - the excitement, stress, choices - and the big day. Then the honeymoon, where all is still aglow, So how do you keep the glow when the real work hits hard?

A walk-through of the process

In my experience, the early days are crucial to ironing out any personal and professional creases to get the relationship off to a good start and set it up for maximum opportunity for success.

It’s during this period that the establishment of working practices for all parties must be agreed on, and a blueprint of all teams’ key roles and responsibilities created.

In a pitch situation, a client and an agency may only have met each other two or three times before choices are made and almost strangers get together in what will be an intense relationship.

Clients want to know, these days, much more about agency methodologies and in a new relationship they want to know how the first 90 days will be handled by the incoming agency.

While there have been brief discussions about how they will work together and what each will do, they still need to determine how to make that work practically.

It is at this stage that a walk-through of what the process should look like is valuable and can set up the relationship for success.

The dreaded gap between agencies

In pitches we’ve run over the years, we’ve had calls from clients after two months saying, “It’s not working. I’m not getting the work I thought I was going to get. The people who are working on my business aren’t the ones I met in the pitch. We had to make minor changes to the campaign that was presented and I’m still waiting to see the work…”

This is what we want to avoid – and any agency that wins a pitch should want the same.

It’s not just about making the relationship work but that the new agency gets off on the right foot financially and can start producing the goods, recovering the costs of their pitch, and implementing campaigns.

When a client takes on a new agency there may well be a gap in output during the transition phase.

This spells gloom for many marketers who have an inherent fear of “the gap” and the time it takes for the handover. It is often where slipups occur.
The marketer is looking for a seamless handover and an agency that gets off to a flying start.

It is the possibility that this may not be the case rather than the actual selection of the agency, that keeps marketers awake at night leading up to a pitch.

Pain-points and passion

Knowing the pain points of both client and agency means we can introduce the teams, noting what each member’s responsibility includes, to create clear lines of communication.

Agencies need to spend time in the client’s business to see how it operates; almost being inducted into the business by key people.

Likewise, the marketer should spend time in the agency to understand how it operates, to determine what KPIs and even scope out the passion with which the agency works.

The better the understanding of both parties of the culture and work practices of the other, the better their chances of achieving results that will form the cornerstone of the relationship’s success.

Just as nobody would judge a marriage after a few months, I believe the first quarter is a good milestone for a working relationship - not to “ditch and run”, but to note where settlement cracks have appeared and can be dealt with before there’s structural damage.

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Agency Scope 2023/2024 SA's top three most admired marketing professionals named

The three most admired marketing professionals, as rated by marketers and agency professionals in the Agency Scope 2023/2024 are Khensani Nobanda, Nedbank, then Sydney Mbhele, Absa, and third Vaughan Croeser, ABInBev.

Image supplied. SA’s top three most admired marketing professionals according to Agency Scope 2023/2024 results

In response to the immense interest building around the upcoming Agency Scope 2023/2024 results, president and CEO of Scopen International, Cesar Vacchiano, provided an amuse-bouche to further whet the appetites of marketers interviewed and subscribing agencies, by naming top three most admired marketing professionals.

Naming the Top 10 soon

“In naming the most admired marketing professionals as rated by both marketer and agency professionals, I must highlight that this was entirely spontaneous, with no prompting whatsoever from researchers,” says Vacchiano.

“My congratulations go to Khensani, Sydney and Vaughan, along with the rest of the top 10 marketing professionals we will be naming soon. While accolades from industry bodies are always welcome, there’s little to beat a jury of your peers naming you their top-rated professionals,” he explains.

A marked increase for participation

At the start of his month-long trip to South Africa, Vacchiano says: “The excitement for the 23/24 Agency Scopee results has been more than heartening to note, with 315 marketers interviewed, representing 220 brands compared to 235 interviews across 158 brands in 2021 – a marked increase in participation.”

He adds that the 200 agency professionals interviewed, comprising 155 creative and 45 media agencies along with 16 media owners solidifies Agency Scope as “among the most valuable data for all sectors of our industry”.

During his time in South Africa, Vacchiano will be presenting the confidential reports to subscribing agencies, giving local and global insights into what the country’s top marketers really think about a number of issues and how this drives industry change and growth.

Information included in Agency Scope 23-24 covers companies noted for their marketing initiatives, and campaigns that achieved peer recognition, including best marketing campaign as well as best agency to work for and most ideal client to work with.

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AdForum's true value: Learning from visionaries, bringing home gold

From 5 to 9 November 2023, the bustling city of London will play host to agency CEOs who will present their strategy and vision to the world's leading search and management consultancies.

Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and Scopen partner will be one of them.

“The agenda for this year is truly spectacular with regards to the quality of the agencies and pitch consultancies attending,” says McDowell.

“Importantly, this shows that the world’s high-profile agencies recognise the importance of interacting with pitch consultants.

“About 30 of us from around the globe will be there, including the British pitch consultants who, despite the fact they know these agencies well, attend because of the value they get from being part of the consultant’s group," she adds.

Even while the agencies engage with pitch consultants and discuss various trends and issues, McDowell says the consultants learning from each other is invaluable, sharing experiences they have with agencies from Australia, various parts of Europe and their home turf.

“In the years I have attended the AdForum Worldwide summit, I’ve never seen an agenda quite like this,” McDowell notes. “It’s always been held over two and a half days at most. The fact that this year it is being held over four days with many more agencies in attendance shows the growing significance agencies are finding in engaging with pitch consultants.”

Live and written feedback

It is a testament to the relevance of the pitch consultancies and the return on investment of time and money for agencies to present to so many consultants at once, representing businesses from all over the world.

“What these agencies want from us is our feedback on how they come across in their presentation,” McDowell asserts.

“The key reasons for this are first that we know about them and their business and secondly, to not only get live feedback in the presentation room but also the full written report on how the agency was viewed by the consultants.

“Included in the report is how the agency was seen by the consultants; any key points we felt they missed out on; highlights, lowlights and compilation of all of our comments which amounts to extremely useful data for new business as well as the way they’re marketing their agencies.”

Apart from getting to know the pitch consultants and how they operate, McDowell says the value of the feedback is seen as vital for the agencies. The role of the pitch consultant has evolved over the years to where their experience becomes a part of the agency’s pitch strategy.

AdForum Summit’s evolution

“The AdForum Summit meetings have always been very worthwhile, from the first one I attended in 2007, also in London. Most interesting for me is having watched how so many of the participating agencies have grown and evolved over these 16 years. When the IAS partnered with the AAR as specialists in developing marketing ecosystems that drive growth in the sector, they encouraged me to attend the AdForum Summits," says McDowell.

“I’m grateful for them advocating for this,” she says, “because the quality of the learning from the event offers continual learning and development. It’s like gaining a Masters in pitch consulting, and many of the peers I met all those years ago stay in touch and share knowledge, which is immensely valuable to me and to the IAS team.”

With agencies like Deloitte Digital, MullenLowe Global and WPP in attendance as well as several high-profile independent agencies such as Pablo and Mother, McDowell says she is counting on another top-drawer experience and learnings unlikely to be found in any one place at one time.

“I look forward to the AdForum Worldwide Summit as an intense week of learning and, as always, bringing marketers, advertising agencies and pitch consultants closer on a creative and strategic partnership level,” McDowell says.

“While London is a magnificent city, I’ll be there to bring experiences and innovation home to South Africa.”

Top FM AdFocus Award to honour best client-agency partnership

The Partnership of the Year Award will celebrate a marketer and agency team that has risen to the challenges while maintaining a robust relationship

Johanna McDowell CEO of the Independent Agency Search & Selection Company speaks on the importance of the FM AdFocus Partnership of The Year Award.

With the current economic climate and lingering effects of the Covid-19 pandemic, the relationship between marketers and agencies in creating effective brand marketing has never been more crucial. 

“In the past 18 months, we’ve seen a stronger relationship developing between marketers and their agencies, driven largely by the turbulent economy and budgetary constraints, compounded by limited resources and the increasing use — and confusion around — martech [marketing technology],” says Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and Scopen partner.

The digital revolution has led to a fragmenting of spend, creating a need to collaborate in combating potential pitfalls in the consumer market,” says McDowell.

“The sheer volume of work required for a brand to stay ahead of the pack is not something a marketer can do alone. They risk not being seen, and determining which channels should be used is best done when marketers and agencies work together on each campaign.”

As client-agency partnerships become closer, winning the IAS-sponsored Partnership of the Year Award at the annual FM AdFocus Awards — which celebrate agencies and individuals for their creativity, marketing skills and business acumen — has gained even greater meaning. 

Combating uncertainties through robust partnerships

McDowell says too much is happening in an atmosphere of uncertainty for marketers and agencies to do anything but hunker down together and create best-fit solutions.

“Rampant inflation and other global challenges, along with the distinctly South African issue of load-shedding, means stronger marketer-agency teamwork is the only way to mitigate potential issues.”

Those who have found a way to partner in combating difficulties are able to deal with the turbulence together, McDowell says. 

So, how can agencies and marketers make sure they’re armed against all eventualities?

“They can continue to forge their partnership by being flexible and willing to bend rather than break as they navigate their way through everything from budgets and technology to understanding and agreement on platform choices,” she says.

“It is because circumstances during and after the pandemic have brought so much change that the Partnership of the Year Award has taken on a whole new meaning for our industries, and we’re looking forward to well-deserved accolades being delivered.”

Testament to the ever-increasing importance of this award among clients and agencies is the record number of entries in this particular category at the AdFocus Awards this year. The secret to great partnerships in an uncertain era, “is to be in lockstep across all decisions. It’s what the judges will be looking for from entries in the FM AdFocus Awards 2023 Partnership of the Year Award”.

The winners of the 2023 AdFocus Awards will be announced on November 22 2023. For more information on the awards, visit www.adfocus.co.za

Read this online here

Don't get caught out at pitching time

Where many organisations start slowing down in the fourth quarter, the period between September and December is often one of our industry’s busiest, writes Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner.

 It’s the season for new business pitches, and marketers are glancing ahead to 2024 for a number of reasons. Firstly, they’re evaluating whether the agencies they have in place are the right ones for what may come. Next, any contracts coming to an end will need to be dealt with before the new year takes hold and this means looking at new agencies or reviewing their current ones for suitability.

 Thirdly, marketing executives will be noting the many changes taking place in the market, both on their side and that of the agencies, and formulating solutions regarding the options open to them in terms of resources and budgeting.

 Then, some marketers are keen to get a head-start on 2024, with new agencies and new work before the end of 2023, making the time between now through to the end of February officially pitching season, with all its attendant demands.

 Add to these pressures the fact that 70% of corporate South Africa starts its new financial year at the end of March, and marketers know there are deadlines and governance requirements to be met - and those ready to run when the starter’s pistol sounds will be in the best position to head the race.

 The season of the big spend

 Impacting on this vital activity is that this is traditionally an extremely busy time, ahead of the holidays, followed by back to school campaigns directly thereafter. The December break, where many South Africans get their chance for downtime, requires extra consideration around timing.

 Historically, this is the season where we see a lot of spend happening, particularly in the retail sector and the launching of new brands in time for festivities. So, on top of time spent on the pitching field, marketers and agencies still have their day jobs to contend with. It’s an intense time – exciting too, but often fierce. It’s a period of reviewing the work onboard, while not wanting to turn down new opportunities.

 My message to marketers now must be to get your juggling gloves on and make a start on all of the above, because if you want to start with new agencies or re-brief current ones, there are some 14 weeks to year end.

 To run a proper new appointment process takes eight to 10 weeks, and there’s much to be done, so marketers need to call in their troops and get as much assistance as possible to make the catch within the timeframe and finish the hard yards before January to alleviate pressures as 2024 begins.

 By making sure you have a team that includes an intermediary, you have expert assistance that can  take some of the load off during this tight timeline, allowing you to dive in now and get that head start. Handing over the management of the pitch process enables marketers to turn up just three times – to note credentials, the chemistry session and the final pitch, essentially removing their greatest pain point.

 With the managing of post-pitch contracting and the hand-over between agencies taken care of, time-poor marketers can focus on hitting the ground running with their new agency in place and campaigns can be briefed in and started almost immediately.

 Even as we watch the clock ticking towards 2024, there’s little reason why marketers should drop the ball at this stage. By ensuring they’re surrounded by an agile and experienced team, 14 weeks well-used can put a marketer ahead of the pack – not only to score that try, but to convert it to early success.

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Further strength behind IAS Media Assurance Auditing offering as ECI Media Management incorporates Eley Consulting into its business

Independent global media consultants ECI Media Management announces that it is incorporating British firm Eley Consulting into its European business.

 Established in 2015 by Mike Eley and Richard Edwards, Eley Consulting supports leading advertisers with market intelligence and expertise in strategic and digital planning, intermediary services, media accountability and financial transparency. Eley Consulting entered into a partnership with The Independent Agency Search and Selection (IAS) late 2022, offering Media Assurance Auditing in South Africa and Africa.

 The deal will see Eley Consulting’s talent and client portfolio of UK, European and African advertisers consolidated into ECI Media Management, boosting the company’s presence and capabilities in these regions. Richard Edwards will join the UK team in a senior client management and new business capacity, while Mike Eley will take on an advisory role.

 ECI Media Management is one of the world’s largest media performance consultants with a global footprint across the Americas, Europe and Asia Pacific, now also extending into Africa through its partnership with the IAS. It offers data-driven media intelligence and rigorous benchmarking to a portfolio of blue-chip global advertisers, helping them to ensure their advertising investment and agency relationships drive higher media value for their brands.

 Johanna McDowell, Founder and CEO of the IAS, says “This new development adds further strength to the existing Media Assurance Auditing service that IAS offers to local clients. Backed by ECI Media Management’s experience, team and track record, IAS is set to deliver 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”.

 Richard Edwards added: “We are pleased to be bringing our business into ECI Media Management – our companies are a natural fit as our values and approach align. The integration of our businesses will create a powerful team that will enable ECI Media Management to continue its growth trajectory across Europe and into Africa. We will continue to work closely with our Africa partner, the IAS, and will bring additional opportunities for the African markets which up till now have not utilised Media Audits to their full benefit.”

 The deal is effective immediately.

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Agency Scope SA 2023/2024: A very good response

With Agency Scope SA 2023/2024 fieldwork well into its third month, close to 200 interviews have been completed among marketers responsible for more than 150 brands. This is according to Johanna McDowell, Scopen partner and CEO of the Independent Agency Search & Selection Company (IAS).

“Our research team is well on the way to achieving our target of 200 brands and 300 interviews by the end of the fieldwork for the Agency Scope biennial study, which delves deep into what marketers really think and will provide important analysis for industry leaders and senior personnel,” she says.

“The response has been very good, even while marketers are under more time pressure than ever - certainly more than they were two years ago. With just a month to go, we’re thankful that marketers have been willing to give their time to this pivotal industry research.”

Snapshot of early insights

Some of the early insights offer a compelling view of what the final results may show, McDowell notes, as interviews progress steadily toward presenting the final results in November 2023.

“Greater respect for Scopen and a far more positive response is apparent across the board this year,” she asserts, citing the example of a “hard to get” respondent participating because her colleagues told her what an intriguing and thought-provoking interview it was.

“This bodes well for the research overall, as the growth in diversity of respondents is of huge value to the whole industry,” McDowell says.

Artificial Intelligence (AI) and tech

“Snippets include those we’ve seen on the topic of Artificial Intelligence (AI), which indicate that it is highly topical, but very polarising – people either fear it or are extremely excited by it.”

Also noted is the market’s focus on staying up to date with tech and digital evolution, the takeout being that some brands are very advanced while others are overwhelmed and struggling to keep up.

“Also, creative speed to market has been mentioned a lot; and in terms of digital platforms, marketers want quick creative concepts and are not prepared to endure traditional media lead times,” says McDowell.

“On budget issues, researchers are observing cuts, even while marketers are still expected to deliver targets. With less money and less marketing, it seems this is going to be an area of huge interest to the industry as a whole.”

Online survey

Apart from researchers hour long and in-depth, face-to-face interviews with marketers, Scopen sent out an online survey to around 500 senior members of creative and media agencies early in August.

“This is designed to get their insights on what is happening in their industries. It provides vital information that will complement the Agency Scope study in terms of furnishing data from the other side of the coin,” McDowell says, adding that the online survey takes anywhere from 20 to 40 minutes; and the response has been robust, with agencies noting their appreciation of being included.

“Both marketers and agencies understand the importance of giving feedback to the knowledge base we are creating, and which will add immense value to the overall Agency Scope study. We’re anticipating lots of new data to analyse through September and October, and we’re looking forward to our full presentations from 30 October onwards.”

With so many profound and rapid changes between the last study and this, Agency Scope is excited to see how the changes and challenges are being experienced, and the solutions marketers are implementing to meet shifting dynamics.

“A full schedule of meetings is planned throughout November, where we will be presenting to agencies that have subscribed to their individual agency reports,” McDowell points out, noting that for those that aren’t yet subscribed, there’s a window of opportunity before the November sessions start.

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Popular 'No Bullsh*t Leadership' course now available in SA

Suitable for communications professionals at any stage of their career, this e-learning programme can train anyone to lead and lead well

“For over 45 years, AAR has been at the unique intersection between brands and agencies, and we have seen first-hand how great leadership sets industry leaders apart,” says Victoria Fox, CEO of this international marketing consultancy.

“We believe leadership must be thought of and taught in a completely new way, and that companies who embrace this challenge will gain a considerable competitive advantage ... We can’t just wait for new leaders to emerge; we must nurture them to succeed.”

With this in mind, AAR has developed a new e-learning programme, titled “No Bullsh*t Leadership”, in collaboration with Chris Hirst, former CEO of Havas Creative Group and author of best-selling business book of the same name. It aims to “accelerate the introduction of a new generation of everyday leaders by democratising leadership training for all,” not just those in the C-suite.

First launched earlier this year, the No Bullsh*t Leadership e-learning programme was only initially open to those based in the UK. However, the Independent Agency Search and Selection Company (IAS) — the AAR Group’s partner in SA — believes this online course will be relevant to agencies and brand marketers in this country.

For this reason, enrolment for the next edition of this UK CPD-accredited online course, starting in October, is now open to communications professionals in SA. There are 40 places available and the programme is suitable for people at any stage of their career.

The No Bullsh*t Leadership e-learning programme is led by Hirst and AAR consultant and executive coach Vonnie Alexander. It comprises eight modules covering different aspects of leadership, including sessions on the importance of decision-making, why self-care is vital, and how to have difficult conversations.

It will feature guest speakers including Harpreet Kaur, the 2022 winner of the UK-version of The Apprentice, and attendees will also have access to an online discussion forum.

I passionately believe that there is no leadership type. Everybody can lead and lead well – and the 'No Bullsh*t Leadership' programme is how

Chris Hirst, author of best-selling business book 'No Bullsh*t Leadership'

“Leadership is always the problem and better leadership is the only solution. Yet so much of what we’re told and sold about the subject is just snake oil,” says Hirst.

“This creates two baleful real-world problems: it inhibits those already in leadership positions from fulfilling their potential and worse, excludes whole swathes of society from believing it is something they can aspire to.

“I passionately believe that there is no leadership type. Everybody can lead and lead well — and this programme is how.”

Johanna McDowell, founder and CEO of IAS, says: “We are very excited that the No Bullsh*t Leadership e-learning programme is now open to SA and rest of Africa.

“We have had many enquiries from brands and agencies about leadership programmes that are specific to the marketing and advertising industry. This course will definitely be very relevant in terms of growing leaders in this country and beyond.” 

For more information, or to sign up for the No Bullsh*t Leadership e-learning programme, click here.

7 insights from #Cannes2023

It seemed this year's Cannes Festival attracted more marketers than ever before. Some accompanied their agencies, some joined their global company meetings, the WFA seminars, the CMO Global Growth Council, and client and agency celebrated together the Lions awards they won.

 Cesar Vacchiano, Scopen International president, gives insights from Cannes Lions 2023.

The big consultancies occupied the Cabanas. More than ever platforms and tech companies occupied the beach, hotels, and restaurants. They hosted the most sought-after parties, bringing artists and singers. Those without passes were even swimming through the sea to approach the beach where the parties were being held. Police boats turned them back.

7 Insights from Cannes Lions 2023

1.   The buzz word: AI

The buzz word of this year’s festival was AI. Everybody was talking about the fears and the opportunities. The learning is that we must think of it as a tool, as it is going to help us improve what we do. It is certainly going to make some jobs obsolete, but it will also open opportunities to work in this new environment, as always happens with new technologies and tools.

Some live demonstrations took place, and it was amazing to see how songs can be written using AI, showing that we must take it as a new tool and not as a threat, and that it will help us to reinvent ourselves because this is how our world progresses.

2.   Diversity and inclusion

Another big topic was around diversity and inclusion which is being heavily supported by big brands that have realized its importance. It is not only the governments, NGOs, or small projects around the world, but the big multinational brands supporting and doing authentic things that change the world for the LGBTIQ+ collective as well as the inclusion of women. Even the festival supported this important issue with the most diverse panel of jury presidents ever.

3.   Social media

Insights convinced us that social media is one of the most important platforms to connect with the younger generations and seminars focused on the power of key opinion leaders and influencers. We need to understand what is happening with these creators and how they work, coordinating and integrating themselves with the strategies of the brands. Looking at the social market, Social Commerce is going to reach $1 trillion US dollars, so we really need to pay attention to what is happening in this space.

4.   Rise of B2B

Last year we saw the rise of the B2B category. This year we have seen this category keep growing, and some extraordinary cases even won Lions. The most impressive work was done by Intel that allows for the detection of fake faces as a B2B tool, done in a very creative way.

5.   Pharma is growing

Another growing area is Pharma. More and more companies and agencies are competing in all its categories. It is a difficult sector with many barriers and legal restraints. What is amazing is to see how Pharma is helping to end many diseases and make life easier in emerging markets.

6.   Gaming and its power

We also saw a high presence of gaming and the power it wields. In the past it was all about Fortnite, and it was more like a trend. Now we see multiplatform campaigns and the power of platforms such as Twitch.

We saw a campaign from the Bank of Montreal that involves streamers talking about financial education on Twitch engaging young people, Gen Z, for hours learning about finance.

7.   Creativity more important then ever

Attending the Awards galas, you really have the feeling that creativity is more important than ever. You appreciate how ideas differentiate brands, how ideas move people to engage with brands, and how innovation improves people’s lives and makes the world a better place to live in.

10 inspiring campaigns

I also encourage you to learn from the following 10 inspiring campaigns that won awards in many categories, and approach briefings and challenges in many different ways:

1.      Mouthpad by Wunderman Thompson Lima

2.      Knock Knock for the Korean Police by Cheil

3.      The Artois Probability for Stella Artois by Gut Buenos Aires

4.      The Last Photo a Live Event Outdoor by adam&eveDDB

5.      Fitchix for Honest Eggs by VMLY&R Melbourne

6.      Shellmet by TBWA Hakuhodo

7.      Schoolgirl Newscasters by Impact BBDO Dubai

8.      Fondation Anne de Gaulle by Havas Paris

9.      Heinz Draw Ketchup by Rethink Toronto, 1

10.  The Foamy Haircut for Brahma by Africa Sao Paulo

The last two are 2022 campaigns that won in 2023 demonstrating creative effectiveness. I have selected work from different countries and regions that demonstrate that great creative ideas come from everywhere.

Congratulations to the South African agencies that won Cannes Lions this year. Ogilvy (the most awarded South African agency), FCB Africa, Grey, Grid, and Promise must be very proud because it is more and more difficult to win.

There were more than 27,000 entries and only 3% won a Lion. South Africa also won in the Young Lions competition, something also very difficult to achieve.

The team from Joe Public, Raphael Janan Kuppasamy and Bernice Puleng Mosala, with Your Home A Classroom, won in film competition focused on raising awareness amongst mothers in India to take charge of their young children’s education. Thanks to Cannes Lions our industry is inspired and celebrates its talent and uniqueness, more so each year.

More findings from Scopen's Agency Scope in Mexico

The selection methods most commonly used in Mexico continues to be pitching (for both creative and media agencies), which is used in 78% of cases (70% in 2021) and in line with the global average (77%).

Internationally, China is the leading country in creative agency selections by pitching and 95% of accounts are won in this way.
This is according to Scopen's seventh edition of its biennial study Agency Scope in Mexico.

Increased time with creative and media agencies

Mexican advertisers work with a creative agency, on average, for a period of 4.5 years (3.9 years in 2021), the same as the global average. Portugal is the market where the relationships are longest (6.4 years) and China where the relationships are shortest (3.1 years).

With media agencies, the average duration has also increased in the last two years: 4.1 years in 2021 and 5.2 years in 2023. In this case, the global average is 4.9 years, and Portugal is again the country with the longest relations (6.5 years) and China where they are shortest (3.1 years).

Most common remuneration model

An annual fee remains the most common remuneration model for creative agencies (in 69% of cases), ensuring a continuous relationship, although at the same time, there is an increase in the number of advertisers who declare to pay their agencies “for specific projects” that are approved throughout the year (36% in 2023 vs. 32% in 2021).

In the case of media agencies, the most used method is also the Iguala (Annual Fee) which has significantly increased compared to the previous edition (80% in 2023 vs. 68% in 2021), with less and less renumeration by commission on media investment -online/offline- (15% in 2023 vs. 26% in 2021).

On the other hand, the variable offered to media agencies is increasing in practically all the markets in which this study is conducted and the fact that the media agencies commit to results and the success of their campaigns, helps establish a variable based on data targets that can be measured.

Satisfaction with agency work

Of Mexican marketing managers, 87% declare themselves satisfied with the work done by their creative agencies and only 4% declare dissatisfaction with the service they receive.

The clients of independent agencies are the ones who are most satisfied with their agencies (92% are satisfied compared to 81% in the case of clients who work with group agencies).

The high satisfaction level explains the low intention to change agencies in Mexico, where only 9% of advertisers say they are thinking of changing agencies (and 4.1% are sure of the change).

Lower satisfaction with media agencies

In the case of media agencies, the satisfaction of advertisers is lower (80% declare themselves satisfied and 29% declare themselves “very satisfied”). However, only 7% declare dissatisfaction (2% “very dissatisfied”).

This also explains an increased intention to change the media agency of advertisers (14%), a figure that doubles the percentage of dissatisfied customers, so that, even if they are satisfied, there are advertisers who are considering changing.

Growth in business

The satisfaction of Mexican advertisers is also reflected in the contribution that marketers assign to the growth in business of the companies in which they work. In the case of creative agencies they attribute, on average, a percentage higher than 24% and in the case of media, just over 26%.

Most valued awards

The Effie Awards (42%) and the Cannes Lions Festival (32%) are the most valued awards in the sector by those responsible for advertising & marketing in Mexico, well above the rest and with more mentions than those obtained in the previous edition in which, mainly due to the non-celebration of many festivals due to the pandemic, the communications to promote them also decreased.

Most admired company and campaigns

In this edition, Coca-Cola appears in first place as the most admired company for its marketing and communication in recent years, followed by NIKE and ABInBev-Modelo.

Among the campaigns most valued by marketing managers, Corona takes first place (coming from 22nd in 2021), Victoria takes second place (from being 12th) and Coca-Cola takes third place (second in the last edition).

Most admired agency

As for the creative agencies that stand out, seven rankings have been developed that analyze different aspects: Spontaneous knowledge, Creativity, Exemplarity, Attraction, Perception of the market, Customer evaluation, and Opinion of the competition. In them, remarkably, as in the previous edition, Ogilvy leads five of the seven rankings and appears in second place in the ranking of Opinion of the competition.

Among the media agencies there are six rankings, given that Creativity is not valued in this case.

In this edition, Starcom appears in all six, leading the rankings of Attraction, Customer Evaluation, and Opinion of the Competition. Also noteworthy are Havas Media (which appears in four, leading in three of them) and Mindshare (which appears in three).

The first part of the findings can be viewed here.

#MasterclassNotes: Leadership needs to come from the middle

Earlier this year at the AdForum Worldwide Summit in New York City, one of the topics of conversation among my fellow pitch consultants was the apparent relentless change at C-suite level among agencies. Here in South Africa, the same is happening and, in the last few weeks in particular, there have been changes at top level in both agencies and among brands.

Global agency leaders have been moving on at a rapid pace — not necessarily to new agencies but often on to the marketing side of the industry or out of the industry altogether. We’ve also noticed many changes among the leadership within global brands and business, and there appears to be little succession planning.

To add to that, an early trend that’s emerging from local research currently in the field is the indication that senior media agency staff are moving across to brands to take up newly created media leadership positions there. What will be the impact of all of these senior level changes and how do we mitigate this?

Leadership development gap

In a 2023 Global Leadership study conducted by the Development Dimensions International (DDI), only 40% of people reported that their company had high quality leaders. In the same study, nearly 80% of companies believe that there’s a leadership development gap. In my work with clients and agencies, when I talk to brands and to agencies, I hear how they’re struggling to find time to train and develop new leaders. I’ve also often been asked about leadership development — and especially more so recently.

Leaders aren’t only in the C-suite, too.

In reality, a leader is anyone with influence, responsible for guiding people and projects from point A to point B. It’s more important to understand this than ever before. I see this firsthand as clients are always asking to see the day-to-day leaders, as opposed to the C-suite leaders, from agencies during pitch processes. It’s the day-to-day leaders who’ll have the most impact on the clients’ businesses.

No longer top-down

Leadership is no longer top-down, so much leadership needs to come from the middle.

Digital transformation and covid have completely redefined the way we work and people now are required to master an ever-expanding set of core skills. The demands of business means that people are being promoted faster but they may not necessarily have the experience to navigate at the new level.

We need to start talking about leadership coming from the middle. In short — and to quote from No Bullsh*t Leadership: Why the World Needs More Everyday Leaders and Why That Leader Is You, a bestselling book by Chris Hirst, former Havas Creative global CEO and Grey London CEO — which, by the way, he openly encourages:

• Anyone who has people who depend on them is a leader

• Our societies, businesses and communities need more and better leaders from all walks of life

• Top-down hierarchical leadership doesn’t work anymore: we need a new way for new people

• The bullshit that surrounds the subject of leadership both inhibits people from fulfilling their potential and excludes people from believing they too could lead

• No-one is born a leader — there’s no leadership type.

• We can all lead if we choose to — and we need practical help so that we know how.