SYNTHESIS BAROMETER OF THE COMMUNICATIONSINDUSTRY 2013 (France)

English version

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Why is Limelight-Consulting’s Barometer strategic for

agencies ?

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3.

4.

Brings keys of understanding on the evolution of the communication

industry

Gives you very strategic and objectivied elements:

what your customers and prospects say about you and will expect from

you in the future. A way for you to reaffirm your reason for being on

concrete, reliable, indisputable data.

Collect the point of view of your coworkers. Considering that the quality

of the relation between the customers and the agency is often equal to

the quality of the relation between the collaborators and the company

(concept of "a symetry of the attentions").

An analysis of the results (profits) with a neutral and objective look,

without any bias.

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How to use the Barometer for an agency

Concerning prospects:

Communicate elements of typical reinsurance: client

satisfaction, recommendation, strengths

Concerning agency’s clients:

Identify the points of improvements and the opportunities to

optimize the relation on a daily basis.

Stand back, validate, in the medium term, elements linked to the

agency’s strategy, seen in the prism of the stakes and the

customer expectations

Concerning the agency’s staff:

Bring to the agency’s staff a global and objectivied vision of the

companies’ stakes, the relationship with the customers and the

agency’s position in this ecosystem (culture, information and

training)

Identify and adjust the daily gaps between the agency’s staff

and the customers: communication, customers’ knowledge,

agency’ offer

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Qualitative phase

33 interviews with lead advertiser decision makers

Methodology : face to face or telephone / duration : between 30 and 45 minutes.

IP: June / July/August 2013.

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Qualitative phase

1068 respondents including 330 decision makers

Positions : 31% Decision makers : Heads of communication, marketing, General Managers

50% Upper Management: Operations Managers

19% Lower management: Project/product/group Managers

Type of advertisers: 32% 100 top advertisers*

Industry sectors** : 27% Sales and distribution

21% Consumer goods (food, clothing etc.)

12% Culture, Media, Leisure, Communications

12% Banks, Insurance

9% Household goods (automobile, etc) and Transport

7% Internet, Telecom, New Technologies

4% Tourism, hotels, and restaurants

5% Industry, Construction, Energy, Business services

3% Management, Public Services, Health services, Training

635 companies represented

Methodology : online and telephone / Duration : 15 to 20 minutes / IP: June-July-August 2013.

* Source : Gross advertising investments 2012, Kantar Média & Stratégies.

** Data adjusted for advertising media and non-media investments by sector in 2011, France Pub.

Unless otherwise indicated, the % excludes DK

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50%

46%

52%

36%

42%

42%

30%

31%

34%

27%

22%

20%

17%

1

2

3

4

5

6

7

8

9

10

11

12

13

53%

51%

50%

45%

45%

44%

36%

34%

31%

29%

24%

19%

18%

Scope of intervention of respondents

Brand content

Brand Strategy (product)

Digital marketing

Corporate brand strategy

Social networks

Digital advertising

Media buying

Point of purchase comm.

Mobile

CRM / PRM

Public Relations

E-commerce

Internal comm., HR

An advertiser manages 4.9 issues on average

Top 100All

Base : 1068

What issues do you manage?

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What keeps advertisers up at

night…

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At the heart of it, the intangible: THE BRAND!

What are the major risks to your brand/ company in the months or years to come? (open)

« Aggressive competitors:

those that have the means will

be the survivors…»

«Competitors who are more

flexible, agile and responsive »

Brand

32%Economy

23% Competition

18%

Digital

14%

Legislation

7%

Innovation

5%

« Lack of innovation that

keeps the client surprised

and interested»

« The evolution of the legislative

environment, fiscal and regulatory»

« legislation that’s too restrictive»

« Legislation on privacy and

personal consumer data»

« Become a real brand and center our

communication strategy on the brand »

« The depreciation of the brand »

« My brand should stay in the driver’s seat »

« Reputational risk »

Base : 1068

«Failure to make the transition to digital »

« We have E-commerce, the risk is that

distribution does not adapt »

« better digital integration in all divisions

(marketing, communication, HR, etc...) »

«That the crisis is longer and more severe

than we imagined »

« Effects of the economic crisis on

purchasing power and budgets.»

« decrease in purchasing power,

prioritizing household spending »

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Decision makers: manage the crisis, strengthen the brand, stay « on

top » of digital

« Not adapting to

the shift in the

paradigm that

mandates digital »

« making the

transition to

E-commerce »

« Devaluation of the brand, drop

in value of intangible assets,

becoming dated and inability to

capture new markets » Economy

28%

Brand

27%Digital

16%

« The current economic environment: the crisis !»

« We are in a difficult economic climate there is a risk

of not meeting revenue goals considering the

context. »

330 decision makers 23% from top 100 advertisers

What are the major risks to your brand/ company in the months or years to come? (open)

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Budget shifts(according to 330 decision makers 23% from

top 100 advertisers)

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Focus on digital, brand, evaluation and reputation

Going forward, in which areas are you going to allocate more/less of your budget?

Social Media Marketing

Mobile mktBrand Content

PRMea. Adv. eff. ROI

CRMInternal Comm

e-commerceConsumer knowledge

Referral SEM..mkt Adverting Comm Influence mkte-reputation Web sites

Operational Mkt Major Media buying Retail marketingMedia partnerships

CSR comm.

Crisis mngt/ comm.Event mktMedia buying: display

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

0% 5% 10% 15% 20% 25% 30% 35%

Mo

re a

llo

ca

ted

Less allocated

€

« There are, in fact areas in which the advertisers

have not entered at all. Agencies are evolving as

the markets mature. The newer it is the more we

need agencies. » Adv Barometer 2012

40+% of advertisers will allocate +budget

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Budget increases by industry sectors

Large

consolidated Distribution Internet,

Telecom

Culture,

LeisureBanks,

insurance

Social Marketing

e-commerce

Brand Content

Social Marketing

Mobile Brand Content

+Valuation

Social Marketing

Search Adv. Comm

Mobile

Consumer

information Evaluation

Mobile

Brand ContentSocial Marketing

Internet,

Telecom

Distribution

The sectors that are

going to increase their

budgets the +:

By sector, TOP 3 areas of budget increases:

Base : 330

Going forward, in which areas are you going to allocate more/les s of your budget?

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Their vision of the abilities of agencies

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For ‘hot’ topics, digital agencies are on the rise

Which of the following types of agencies do you trust the most to accompany you on ...?

1er

2nd

1st

Mobile

marketing

Digital

78%

Customer

Marketing

18%

Media

17%

Brand content

Digital

32%

Advertising

45%

Corporate

21%

Social media

marketing

Digital

81%

Media

15%

Public

Relations

13%

3rd

Base: 330 decision makers 23% from top 100 advertisers

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On emerging issues, digital and customer marketing, contention

Customer

Marketing

64%

CRM,

Relationship

Mkt, data

Digital

33%

e-commerce

Digital

66%

Customer

Marketing

33%

Consumer

knowledge

Customer

Marketing

42%

Media

34%

Advertising

28%

e-reputation

Public

relations

24%

Digital

65%

Trade

Marketing

Advertising

21%

Customer

Marketing

63%

1er

2nd

1st

3rd

Advertising

8%

Advertising

7%

Customer

Marketing

10%

Corporate

10%Digital

11%

Media

6%

Base: 330 decision makers 23% from top 100 advertisers

Which of the following types of agencies do you trust the most to accompany you on ...?

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On subjects with strong added value, opinions are split.

Digital adv.

concepts

Digital

84%

Advertising

35%

Advertising

74%

Brand strategy

Corporate

24%

1er

2nd

1st

3rdCustomer

Marketing

5%

Media

14%

Base : sorted by sector across 1068 respondents

Which of the following types of agencies, who do you do most trust to accompany you on ...?

Base: 330 decision makers 23% from top 100 advertisers

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What stands out in agency

relationships

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By agency, still on the whole good…

AdvertisingCustomer marketing

Digital Corporate PR Media

Pleasure

Solidarity

Peace of mind

Pleasure

Peace of mind

Solidarity

Pleasure

Solidarity

Peace of mind

Peace of mind

Pleasure

Solidarity

Pleasure

Solidarity

Peace of mind

Solidarity

Peace of mind

Pleasure

1

2

3

83% 81% 76% 84% 89% 83%positiveoverall

impression

What overall impression have you had of your agency over the last few months?

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Agency presentations:

improvement is a priority

20

25%

17%

15%

14%13%

10%

7%

Creativity

Strategy

Operational

FocusNothing, it's all good

Everything

Organisation

Ligne B

In general, clients are asking for + creativity and strategy

All

In terms of the quality of the presentations you see today what would you like to see improve above all else….

Operational No 2 priority for:

Capital goods(16%)

Industry/service (16%)

Base : 1068

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What are the agencies’ strengths

& weaknesses?

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Best: relationship management. Needs improvement: innovation and process.

How would you rate your agency on a scale of 1 to 5 from bad to best (22 elements evaluated) ?

Top 3 of 22 elements

Good rapport with agency contact people

Availability of leaders when necessary

Commitment and reactivity of sales teams

Surveys, contracted benchmarks, added value

Agency investment in client growth

Provision of tools /processes to maximize efficiency

Forward thinking on the evolutions in marketing/comm & sharing with clients

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Bottom 3 of the 22 elements

All Decision makers Management

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By type of agency…

AD CM Digital CORP PR Media

Good rapport with agency contact people

Availability of leaders when necessary

Commitment and reactivity of sales teams

Understanding of advertiser’s industry /issues

Able to adapt to company and rise above internal issues

Contracted surveys, benchmarks, value added

Commitment & investment in company growth and learning

Provision of tools /processes to maximize efficiency

Visibility on internal vs external service provision

Strategic planning

Outsourcing : ability to manage outside suppliers

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AD CM Digital CORP PR Media

How would you rate your agency on a scale of 1 to 5 from bad to best (22 elements evaluated) ?

Top 3 of 22 elements

Bottom 3 of the 22 elements

CHALLENGES FOR ADVERTISERS

1. The findings

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« Advertisers say »

"Agencies do not have the customer in mind"

"They are responding to our questions, not anticipating"

“All the elements are there but they are not working together: there are very good

soloists but with no musical training and there is no orchestra anywhere to be seen."

"Data: agencies do not know how to handle it"

"I expect ideas from an agency, not the run-of-the-mill"

"My frustration is the execution: mistakes on a daily basis. If the execution is not there,

creativity and vision are forgotten."

“It’s inexcusable for a big agency to make poor quality presentations."

“When subjects are considered minor in the eyes of the agency, they dedicate fewer

resources and less intelligence ... So things must be done and redone to the

detriment of everyone concerned."

"The deliverable is good, it’s the operational that’s sometimes complicated“

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A « marcom » that takes charge

An evolution in the business that puts the Marcom back in the center

and clarifies 3 things:

1. Multi-channel = fluid workflow

« The ride needs to be smooth: hot or cold prospect, for all clients and on all channels »

« It is hard for an agency to master all channels and today we are on all channels »

2. Brand content

« There is an issue in understanding and building the brand »

3. Data , CRM

« We are going to become a ‘customer centric’ enterprise, data is going to put us back in

the heart of the business »

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« Utopia », or an puzzle to solve

« On the one side we need fresh talent to challenge us, and on the other we need

production workhorses as we are constantly producing »

Intelligence

« Understanding the brand and the ability to increase its value »

« The agency needs to understand the course of business »

« I would be part of the company audit to get as close to the subject as possible»

« We want to be kept up to date, it can get very egocentric on the corporate side »

« A strong advisory role, and daily support »

« A creativity and highly cultivated agency »

Operationnel

« we must go forward together, it must be a tight partnership »

« The right level of expertise and maturity must be assigned to each project »

« Drive the operational »

« The importance of the quality of the deliverables is inescapable »

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2 poles

creativity

Operational

« It is the only

thing that cannot

be internalized »

« Asking for good

creativity is a given»

« The implementation

can be internalized »

« If the execution is

not there, there is

frustration and

creativity and vision

are forgotten»

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2 corporate culture variables

creativity

Marketing

Operational

Business

« If you understand

the business, the

rest will follow »

« If you understand

the brand, the rest

will follow »

« We need to have

good deliverables

before we need brain

power»

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Respond earlier rather than more(Avoid wasting energy, avoid being just average and all over the

place)

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When it’s right the advertiser is willing to pay

« They have this ability to take on the subject from all angles with an intrinsic knowledge

of what we are. They are consulting minded and that I will pay for without hesitation »

« We are ready to pay if they are good and they have the solution »

« Agile minds are priceless ! »

« We pay them well for the good work we are getting in exchange »