The future of advertising and agencies in a networked society

Three possible scenarios

The worst case scenario

A £16bn revenue gap

What are social media? ‘ The online tools and platforms that people use to share opinions, insights, experiences and perspectives with each other.’ Source: Wikipedia Blogging Messaging Podcasting Online video Wikis Social networking

Social media and brand communications

Who uses social media?

New models of brand communications Participation

New advertising formats

Separating the hype from the reality High-involvement categories fare best Creativity and innovation are at a premium Humility is a virtue Be ‘legal, decent, honest and truthful’ Do not infringe IP

High-involvement categories fare best

Creativity and innovation are at a premium

Humility is a virtue

Be ‘legal, decent, honest and truthful’

Do not infringe IP

A case example of social media integration

A case example of social media tracking

Did it just happen or was it planned? Learning from academia

‘ Expansiveness’

‘ Popularity’

‘ Reciprocity’

Network size is predictable

...as is network flow

… as is circulation between networks

Agencies and social media The Delphi research

Predictive planning in social media Scale of the opportunity Estimated reach Predicated pass-on levels Levels of wear-out

Scale of the opportunity

Estimated reach

Predicated pass-on levels

Levels of wear-out

When thinking about brand messaging over social networking in ten years’ time, what changes should agencies expect in terms of: Consumer behaviour? Responsibility? Control? Predicting the future

When thinking about brand messaging over social networking in ten years’ time, what changes should agencies expect in terms of:

Consumer behaviour?

Responsibility?

Control?

“ There will be a mix of consumer-granted and non-permission activity – people will expect advertising to be relevant to them though.” Dissemination and permission

“ It will be likely that people will sell ‘rent’ parts of their data to brands in return for better service and/or discounts.” Knowing the worth of your data

“ Those who hustle to make a buck by forwarding irrelevant messages will be excluded or ignored!” Rewarding brand advocates

Assessing the top-line business impact

Impact

Possible structure of the industry in 2016

Total commercial advertising 1996-2016

“ Those agencies who innovate appropriately, in terms of their service and product offer, have potential for significant income growth in these new value-add areas.” A final thought…