4A's Transformation 2014 - March 17 - Marc deSwaan Arons, CEO, Effective Brands

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  • 1. Imagine 2020
  • 2. Quite Close
  • 3. Urbanization Sustainability Technology •New economies
  • 4. The Marketing World
  • 5. Speed
  • 6. Transparency
  • 7. Transparency
  • 8. Generation WHY
  • 9. NGOs
  • 10. WHAT we do has changed dramatically
  • 11. HOW we are organized has not
  • 12. 250 CEOs and CMOs in 10 markets
  • 13. 10,231 marketing participants from 92 countries
  • 14. Client Opportunities & Challenges Marketing2020
  • 15. Collaborating for New Solutions Social Globalization •Purpose
  • 16. Opportunity to Influence
  • 17. Doing More with Less Privacy Touch-Point Consistency •Internal Silos
  • 18. Infobesity
  • 19. Personally Staying Current
  • 20. Marketing / Agency Roles Global ConsumersPartnersLocal Agencies
  • 21. Unleashing the value of Agencies as Idea Generating Intermediaries Agency2020
  • 22. - Strategy - Structure - Capability Agency2020
  • 23. Vision Interviews with 75 Thought-Leaders
  • 24. Michael Wege CMO The Hershey Company Clients
  • 25. Partners Patrick Harris Director, Global Agency Development Facebook
  • 26. Susan Credle Chief Creative Officer Leo Burnett Worldwide Creative Agencies
  • 27. Rob Norman Chief Digital Officer Global GroupM Media Agencies
  • 28. Jenny Hoffman Manager, Agency Development MEC Agency Millennials
  • 29. MaryAnn Brennan Senior Director, Global Procurement Mattel Procurement
  • 30. Online Survey: 725 Respondents
  • 31. Agency Profile Independent Part of Holding Other TypeWork Experience <5 Year 5-15 Years 16-25 Years >25 Current Position Board/EVP/SVP/C-Suite VP/Director/Head Manager Other
  • 32. The World according to AGENCIES Agency2020
  • 33. Half Full or Half Empty?
  • 34. Client Trust Value of Creativity Business Model •New Solutions
  • 35. Big Data Programmatic Media Technology •Millennials
  • 36. Embracing Change
  • 37. Agency & Client Agree on Top Trends … 50 38 54 43 0 20 40 60 Increased focus on measurement, ROI, and demonstrating the value of ideas Big data (e.g., media buying based on big data) Agency Client
  • 38. Top 3 trends that will impact the future role of agencies 50% 38% 31% 28% 27% 25% 25% 17% 17% 15% 11% 10% 6% 54% 43% 44% 3% 19% 23% 30% 11% 28% 14% 18% 10% 6% Increased focus on measurement, ROI and demonstrating the value of ideas Big Data (e.g. media buying based on big data) New providers of ideas (e.g. Idea Boutiques, Crowdsourcing, Facebook, Twitter) New agency revenue streams (e.g., New Products, Experiences, Cultures) Convergence of idea providers - 'everybody doing everything' Collaboration - within and across the agency, and inter-agency Insights that drive creation of messaging and ideas Generation Y - Millennials as employees, recruiters and idea generators Budget restrictions, cost-cutting The commoditization of creativity The rise or changing role of In-house agencies The power of procurement Agency and network mergers Agency Client
  • 39. … But not on Level of Agency Response 49 35 51 19 14 26 0 20 40 60 Strategy Structure Capabilities Agency Client*Top 2 boxes - % who responded “more radical/radical”
  • 40. No meaningful differences between how Independent vs. Holding are responding 51 34 52 46 39 50 0 20 40 60 Strategy Structure Capabilities Independent Part of Holding *Top 2 boxes - % who responded “more radical/radical”
  • 41. Agency size was not a driver when it comes to top trends 51% 33% 25% 28% 29% 27% 27% 19% 17% 17% 6% 5% 18% 49% 33% 31% 31% 28% 24% 23% 17% 16% 16% 13% 12% 7% Increased focus on measurement, ROI and demonstrating the value of ideas New providers of ideas (e.g. Idea Boutiques, Crowdsourcing, Facebook, Twitter) Convergence of idea providers - 'everybody doing everything' Big Data (e.g. media buying based on big data) Collaboration - within and across the agency, and inter-agency Insights that drive creation of messaging and ideas New agency revenue streams (e.g., New Products, Experiences, Cultures) Generation Y - Millennials as employees, recruiters and idea generators The commoditization of creativity Budget restrictions, cost-cutting The power of procurement Agency and network mergers The rise or changing role of In-house agencies Small Creative Agency Large Creative Agency
  • 42. No meaningful differences between how small versus large agencies are responding 49 25 51 38 35 50 0 20 40 60 Strategy Structure Capabilities Small Creative Agency Large Creative Agency *Top 2 boxes - % who responded “more radical/radical”
  • 43. Media agencies are more focused on measurement and big data than creative agencies 49% 33% 33% 27% 27% 26% 26% 17% 17% 17% 12% 9% 6% 60% 12% 68% 28% 38% 16% 16% 18% 20% 2% 0% 18% 4% Increased focus on measurement, ROI and demonstrating the value of ideas New providers of ideas (e.g. Idea Boutiques, Crowdsourcing, Facebook, Twitter) Big Data (e.g. media buying based on big data) Convergence of idea providers - 'everybody doing everything' New agency revenue streams (e.g., New Products, Experiences, Cultures) Collaboration - within and across the agency, and inter-agency Insights that drive creation of messaging and ideas Generation Y - Millennials as employees, recruiters and idea generators Budget restrictions, cost-cutting The commoditization of creativity The rise or changing role of In-house agencies The power of procurement Agency and network mergers Creative agency Media agency
  • 44. What does It Take to Win?
  • 45. 3-Year Revenue Growth
  • 46. Validation
  • 47. Over- Performers
  • 48. MORE Focused on New Agency Revenue Streams 35% 24% 0% 20% 40% 60% New agency revenue streams (e.g. experiences) Over-performers Rest
  • 49. MORE focused on Collaboration 28 20 0 20 40 Collaboration - within and across the agency, and inter- agency Over-performers Rest
  • 50. MORE responsive to Trends *Top 2 boxes - % who responded “more radical/radical” 66 52 64 41 26 47 20 40 60 80 Strategy Structure Capabilities Over-performers Rest
  • 51. LESS Focused on Measurement & ROI 45 54 20 40 60 Increased focus on measurement, ROI, and demonstrating the value of ideas Over-performers Rest
  • 52. LESS Focused on Budget Restrictions 14 20 0 20 40 Budget restrictions, cost-cutting Over-performers Rest
  • 53. So …. What does It Take to Win?
  • 54. Marketing2020 Effectiveness Framework Big Insights Purposeful Positioning Total Experience
  • 55. The ‘WHAT’ Big Insights Purposeful Positioning Total Experience
  • 56. Big Data
  • 57. 38 33 45 42 30 32 34 36 38 40 42 44 46 48 50 We have right data and analytics available to measure marketing effectiveness We are able to leverage all data and analytics available to improve our marketing effectiveness Underperform Overperform Big Insights Purposeful Positioning Total Experience
  • 58. Big Insights Purposeful Positioning Total Experience
  • 59. Big Insights Purposeful Positioning Total Experience
  • 60. Agency2020 ‘WHAT’ Agency2020
  • 61. Big Insights
  • 62. iI Big Insights Client Creative Media
  • 63. iI Big Insights Client Creative Media
  • 64. iI Big Insights Client Creative Media
  • 65. Big data is important, but what role will the agency play? 48 49 35 60 0 20 40 60 Our agency has the right data and analytics available to meausre effectiveness Big data will help demonstrate the value of creative ideas Agency Client
  • 66. Media agencies are more confident in their ability to lead the way when it comes to data 45 46 68 68 0 20 40 60 Our agency has the right data and analytics available to measure effectiveness Big data will help demonstrate the value of creative ideas Creative Media
  • 67. Agencies Think They Get It … Clients aren’t so Sure 45 35 20 40 60 Our agency has sufficient capability in data analysis and analytics Agency Client
  • 68. Media agencies think they have the edge 41 66 0 20 40 60 Our agency has sufficient capability in data analysis and analytics Creative Media
  • 69. New Competitors
  • 70. Proving Value
  • 71. Over-Performers Excel ** 55 34 20 40 60 Our agency has sufficient capability in data analysis and analytics Over-performers Rest
  • 72. Over-performers Excel 60 54 40 47 0 20 40 60 Our agency has the right data and analytics available to measure effectiveness Big data will help demonstrate the value of creative ideas Over-performers Rest
  • 73. Size Matters 30 44 45 59 20 40 60 Our agency has sufficient capability in data analysis and analytics 0-49 FTE 50-130 FTE 131-490 FTE >491 FTE
  • 74. Purposeful Positioning
  • 75. Clients Feel More Purposeful… 49 71 30 50 70 The positioning of the brand or organization I work with is societally purposeful Agency Client
  • 76. Industry Reputation
  • 77. Agency’s Positioning Misunderstood 75 46 20 40 60 80 Our agency has a clear positioning Agency Client
  • 78. Not clear that Agencies are purposeful 51 38 20 40 60 The positioning of our agency is societally purposeful Agency Client
  • 79. Again, Over-Performers Win 79 53 57 72 46 48 20 40 60 80 Our agency has a clear positioning The positioning of the brand or organization I work with is societally purposeful The positioning of our agency is soceitally purposeful Over-performers Rest
  • 80. Total Experience
  • 81. Size matters, again 30 44 62 65 20 40 60 Agency roles will generalize toward everybody doing everything 0-49 FTE 50-130 FTE 131-490 FTE >491 FTE
  • 82. DEPTHPersonalization B R E A DTH# of Touch Points © 2013 EffectiveBrands Brand Value in a Digital Age
  • 83. Clients Need Strategic Support …
  • 84. … And are used to paying for it $ $ $ $ $ $ Business Marketing Communication
  • 85. Marketing2020 Effectiveness Framework Big Insights Purposeful Positioning Total Experience
  • 86. The ‘HOW’ Organizing for Growth
  • 87. Connect Big Insights Purposeful Positioning Total Experience
  • 88. Agencies Going from Silos… Big Insights Purposeful Positioning Total Experience Agency Lead Client Lead Creative Board Finance Planning Integration R&D Executives Finance Marketing Digital
  • 89. To Connected Networks Big Insights Purposeful Positioning Total Experience Account Manager Client Contact Creative Board Finance Planning Digital R&D Executives Finance Marketing Digital
  • 90. Inspire Big Insights Purposeful Positioning Total Experience 71 32 0 20 40 60 80 We ensure that all employees are fully engaged with our purpose Over-performers Rest
  • 91. Instead of Celebrating What We Do … Big Insights Purposeful Positioning Total Experience Ideas Storytelling Great Content
  • 92. Celebrating What We do for the World Big Insights Purposeful Positioning Total Experience SimplifyingAccessSelf-Esteem
  • 93. Shared Metrics Big Insights Purposeful Positioning Total Experience
  • 94. Over-Performers: New Metrics Big Insights Purposeful Positioning Total Experience 54 42 15 35 55 Consumer Engagement Over-performers Rest
  • 95. Over-performers view of the best metrics 54% 37% 34% 27% 26% 24% 12% 10% 9% 9% 8% 6% 5% 5% 1% 0% 34% 42% 39% 29% 32% 37% 28% 16% 8% 9% 5% 7% 4% 5% 5% 1% 2% 33% Consumer engagement Client sales or profit levels Client Revenue Growth Brand Equity / Health Client Brand Awareness Client Market Share Buzz/ Advocacy Media planning & buying efficiencies and effectiveness Brand Love Share of Voice/ Experience MROI Creation of new products and services Net Promoter Score (NPS) Agency growth in terms of share, revenues and/or profit Other Creative Awards It depends on the client/ brand's objectives Overperformers Rest
  • 96. Differences in metrics, creative versus media 46% 35% 34% 33% 28% 28% 14% 10% 7% 6% 6% 5% 5% 5% 2% 1% 37% 50% 22% 52% 32% 12% 30% 8% 8% 22% 8% 12% 0% 4% 6% 0% 2% 32% Consumer engagement Client Brand Awareness Client sales or profit levels Client Revenue Growth Client Market Share Brand Equity / Health Buzz/ Advocacy Brand Love Media planning & buying efficiencies and effectiveness Share of Voice/ Experience MROI Net Promoter Score (NPS) Creation of new products and services Agency growth in terms of share, revenues and/or profit Creative Awards Other It depends on the client/ brand's objectives Creative agency Media agency
  • 97. Organize Big Insights Purposeful Positioning Total Experience
  • 98. Winning Clients are Collaborating with More Agencies Big Insights Purposeful Positioning Total Experience Source: Marketing2020 Data 55 33 0 20 40 60 % that works with more than 5 agencies M2020 Over-performers M2020 Under-performers
  • 99. Lack of Clarity on Roles is a Major Issue Challenge 34 45 32 41 38 38 20 40 60 Internal Agency Role Clarity Agency-Client Role Clarity Agency-Agency Role Clarity Agency Client Big Insights Purposeful Positioning Total Experience
  • 100. Over-Performers are ahead, but there is room to improve 36 50 39 34 43 27 20 40 60 Internal Agency Role Clarity Agency-Client Role Clarity Agency-Agency Role Clarity Over-performers Rest Big Insights Purposeful Positioning Total Experience
  • 101. From P&L Silos Big Insights Purposeful Positioning Total Experience
  • 102. To Networked Collaboration Big Insights Purposeful Positioning Total Experience
  • 103. Garage Team Mazda Colgate Red Fuse Team Detroit Team Nestle Big Insights Purposeful Positioning Total Experience
  • 104. Let’s Talk Millennials Big Insights Purposeful Positioning Total Experience
  • 105. Where do agencies stand when it comes to Millennials? 56 28 10 30 50 70 Our agency is successfully attracting, developing, and retaining Millennials Agency Client 55 62 10 30 50 70 Our agency is successfully attracting, developing, and retaining Millennials Creative Media 60 44 10 30 50 70 Our agency is successfully attracting, developing, and retaining Millennials Large Creative Agency Small Creative Agency
  • 106. Over-Performers Win with Millennials Big Insights Purposeful Positioning Total Experience 70 49 30 50 70 Our agency is successfully attracting, developing, and retaining Millennials Over-performers Rest
  • 107. Millennial Motivators Big Insights Purposeful Positioning Total Experience
  • 108. Mentorship Collaboration Balance • Transparency Big Insights Purposeful Positioning Total Experience
  • 109. Purpose Big Insights Purposeful Positioning Total Experience
  • 110. Millennial De-Motivators Big Insights Purposeful Positioning Total Experience
  • 111. Hierarchy Rigidity The Accepted Path • The Excel Effect Big Insights Purposeful Positioning Total Experience
  • 112. Clear Career Paths Big Insights Purposeful Positioning Total Experience 75 64 40 60 80 There is a clear career path for me Over-performers Rest * % Fully agree/ agree
  • 113. Build Big Insights Purposeful Positioning Total Experience
  • 114. Agencies Feel Equipped – Clients Not Convinced 42 23 10 30 50 Current Capability vs. 5 year Requirements Agency Client Big Insights Purposeful Positioning Total Experience
  • 115. There are Some Clear Areas to Focus on 54 52 47 51 61 44 30 50 70 Branded Content Creation Mobile Digital and Social Media Advertising Agency Client Big Insights Purposeful Positioning Total Experience
  • 116. What are the capabilities for the future? 77% 54% 52% 47% 42% 40% 34% 31% 28% 24% 18% 15% 14% 13% 9% 1% 1% 48% 51% 61% 44% 40% 60% 35% 30% 33% 14% 14% 24% 15% 16% 10% 6% 0% Data analysis and analytics Branded content creation Mobile Digital and Social Media advertising Consumer understanding & insights Consumer/customer engagement Big creative idea development Brand strategy Consumer/customer touch point planning New business model development Product or service innovation Brand positioning Shopper marketing/Retail experience Apps creation (e.g. native advertising) Public relations/Crisis Management Advergaming Other Agency Client
  • 117. Differences between capabilities that Media vs. Creative are focusing on? 75% 52% 49% 47% 42% 40% 37% 34% 27% 24% 17% 17% 14% 13% 10% 1% 1% 90% 62% 74% 44% 24% 58% 16% 12% 38% 26% 2% 24% 6% 20% 2% 0% 2% Data analysis and analytics Branded content creation Mobile Digital and Social Media advertising Consumer/customer engagement Consumer understanding & insights Big creative idea development Brand strategy Consumer/customer touch point planning New business model development Brand positioning Product or service innovation Apps creation (e.g. native advertising) Shopper marketing/Retail experience Public relations/Crisis Management Advergaming Other Creative agency Media agency
  • 118. What capabilities are over-performers focused on developing? 80% 53% 50% 48% 44% 43% 38% 30% 28% 22% 22% 16% 10% 9% 6% 1% 0% 76% 40% 56% 51% 41% 47% 33% 31% 29% 15% 23% 17% 16% 12% 11% 1% 1% Data analysis and analytics Consumer understanding & insights Branded content creation Mobile Consumer/customer engagement Digital and Social Media advertising Big creative idea development Brand strategy Consumer/customer touch point planning Product or service innovation New business model development Brand positioning Shopper marketing/Retail experience Apps creation (e.g. native advertising) Public relations/Crisis Management Advergaming Other Overperformers Rest
  • 119. Clients are not entirely convinced how equipped the agency is 42 23 0 20 40 60 % "very good/world class" agency capability vs. 5 year requirement Agency Client
  • 120. Over-Performers are More Equipped 54 34 0 20 40 60 % who rate agency's capability "very good/world" class vs job requirement 5 years from now Over-performers Rest Big Insights Purposeful Positioning Total Experience
  • 121. Over-Performers train more 46 29 0 20 40 60 % who receive >3 days of training per year Over-performers Rest Big Insights Purposeful Positioning Total Experience
  • 122. … and better 60 48 20 40 60 % who rate quality of training program >6 (scale of 1-10) Over-performers Rest Big Insights Purposeful Positioning Total Experience
  • 123. Agency2020 Effectiveness Big Insights Purposeful Positioning Total Experience
  • 124. What can you do Tomorrow? Winning in 2020 … or 2015 Big Insights Purposeful Positioning Total Experience
  • 125. Lead by Example 71 49 30 50 70 Our agency's senior management sufficently understand social and digital marketing Over-performers Rest
  • 126. Clients want agency leadership to step up their game 58 41 20 40 60 80 Our agency's senior management sufficently understand social and digital marketing Agency Client
  • 127. Media leadership is already doing it 55 80 40 60 80 100 Our agency's senior management sufficently understand social and digital marketing Creative Media
  • 128. Think IMIADA
  • 129. Think Integration
  • 130. Not Hand-Off
  • 131. Think Holistic
  • 132. Celebrate the Industry
  • 133. Your Clients Need You
  • 134. You Have the Talent
  • 135. You have Proven Ability
  • 136. You are Admired 69% of consumers think that advertising has the power to change the world* Source: McCann “The Truth About Advertising” – Transformation 2013
  • 137. You can Complete the Puzzle
  • 138. So, … What’s Holding You Back?
  • 139. Go for it!
  • 140. Thank You marc@effectivebrands.com @mdeswaanarons