partnerships, people & proprietary technology: the 3p’s of the future brand building value...
TRANSCRIPT
The 3P’s of the Future Branding Building Value Chain
Pipa Unsworth @peepa @verveiq
Faced with clients moving key services in-house, or working directly with media and marketing
technology platforms, what can agencies do to remain relevant and deliver value?
SOMEONE CHANGED THE RULES“The rules have been modified so much that we are actually playing a different game now. The very nature of the customer, the market and therefore of the organisation has transformed while a lot of companies are still playing by the old rules.”
Peter Hinssen @Nexxworks
Source: http://nexxworks.com/blog/what-happens-when-the-rules-of-the-market-change
CONTENT TRENDS
Soure: http://www.adweek.com/news/advertising-branding/10-trends-shaping-future-branded-content-163591
Real time marketing is the new normal
Content will be more participation based
Personalised content a scale
Embracing the new social influencers
Sign (i.e. data) driven content distribution
Content that drives conversion - not just acquisition
Content technology bringing together planning and buying
Productising data and insights
THE MOVE INHOUSE
Source: https://hbr.org/2015/07/6-reasons-marketing-is-moving-in-house
#1 Agencies aren’t keeping pace
#2 Agencies are stuck on advertising
#3 Continuity has become more important than campaigns
#4 Companies no longer want to outsource customer relationships
#5 Companies want to own the data
#6 Agency talent is moving in-house (or joining startups)
NEW TECHNOLOGY IS ALLOWING BRANDS TO BYPASS AGENCIES
Source: http://www.adweek.com/news/technology/new-technology-allows-brands-bypass-agencies-158182
“If it’s programmatic inventory, it’s really easy to do. You can train your receptionist to do it.”
Adtech company CEO
“Programmatic buying is ridiculously complex. We will beat you every time at the auction.”
Agency media executive
V.S.
MORE COMPETITION FROM MEDIA FIRMS“Media companies are increasing revenues by building creative studios that allow them to give away creativity to brands so that they will spend more money on a media buy with them. “
Source: http://digiday.com/agencies/6-trends-will-shape-future-agencies
“AGENCIES ARE COCKROACHES, NOT DINOSAURS.”
Source: http://adage.com/article/agencies/future-ad-agencies-uber-model/299816/
Brian Wieser, Senior Analyst, Pivotal
https://econsultancy.com/blog/65050-how-is-the-agency-model-changing-part-one/ Source: https://econsultancy.com/blog/65050-how-is-the-agency-model-changing-part-one/
Source: http://adage.com/article/agencies/future-ad-agencies-uber-model/299816/
Source: http://adage.com/article/agencies/future-ad-agencies-uber-model/299816/
The 3P’s of the future brand building value chain
THE 3P’S
Strategic alliances are critically important in brand building value chain - how do you
build the right partnerships?
Partnerships People Proprietary Tech
The war for talent is fierce - how do you find and keep the
right people?
Investing in tech can differentiate and provide a clear
competitive advantage - how do you avoid the
pitfalls?
PARTNERSHIPSStrategic alliances are critically important in brand building value chain
How do you build the right partnerships?
#2
PARTNERSHIPS§ Partnership opportunities are everywhere: Content, Media,
Technology, Services. For example:§ Unilever and Vice to create content for its Broadly women’s channel§ Pinterest and Vice join forces to create content for Bank of America§ WPP, Daily Mail & Snapchat created Truffle Pig content agency
§ Brand-Agency JVs
§ Re-bundling of creative and media
Focus on the value to the customer
PEOPLEThe war for talent is fierce.
How do you find and keep the right people?
#2#
PEOPLE§ 79% of agencies believe talent shortage is one of their biggest challenges
§ Agencies are not just competing for talent with other agencies – they are competing with consultancies, startups, tech firms
§ Rising numbers of people freelancing and contracting
Source: eConsultancy & Adobe “The Future of Agencies” Report
Operating model that supports a ‘fluid’ workforce
Reinvigorate reasons to believe and belong
PROPRIETARY TECHInvesting in tech can differentiate and provide a clear competitive advantage
How do you avoid the pitfalls?
#23
PROPRIETARY TECHNOLOGY§ 62% of agencies say they are increasing their investment in proprietary tech
§ 34% have an innovation lab and a further 29% are planning one
Source: eConsultancy & Adobe “The Future of Agencies” Infopgrahic
Clear plan for monetising your investment
Embed it into your core agency proposition
Build, buy or partner?
SUMMARY§ Several forces are disrupting the traditional brand building value chain
§ CMOs are looking for new ways to create content and be agile
§ Agencies are evolving: § Creating new services and operating models § Making strategic acquisitions and alliances§ Embracing new hiring models to secure talent§ Building their own technologies to deliver new services and differentiate
themselves
§ Agencies must carefully choose how and where they add value, be more collaborative with clients and other key players in the new brand building value chain.