BIMA Breakfast Briefing | AAR Thinks: 2014 Opinion Research

680 views

Published on

Intermediaries AAR joined BIMA for July's BIMA Breakfast Briefing.

Tony Spong and Robin Charney presented the findings from their latest research 'AAR Thinks: 2014 Opinion Research' - carried out amongst UK clients and agencies.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
680
On SlideShare
0
From Embeds
0
Number of Embeds
134
Actions
Shares
0
Downloads
2
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

BIMA Breakfast Briefing | AAR Thinks: 2014 Opinion Research

  1. 1. AAR Thinks: Opinion Research 2014 “Taking advantage of the upturn in confidence” Tony Spong and Robin Charney July2014
  2. 2. Introductions  Who are AAR  Who we are  How to contact us - rcharney@aargroup.co.uk - 07770658073 - tspong@aargroup.co.uk – 07872603771  If you want to mention us today - @aargroup  Feel free to jump in with any questions as we go! © 2014 AAR privacy & legal
  3. 3. AAR Thinks: Opinion Research 2014 Background and context  The research was undertaken by Colman Parkes Research using telephone interviews  They spoke with 200 senior management/Heads of teams from clients and agencies in the UK to give an informed, mutual view © 2014 AAR privacy & legal
  4. 4. What we’ll cover this morning Market confidence and looking ahead Pitches and expectations Senior challenges and wish lists © 2014 AAR privacy & legal
  5. 5. Time to put your best foot forward? © 2014 AAR privacy & legal
  6. 6. How are Marketers feeling? 93% say things picked up for marketing in 2013 86% say things have picked up for my brand in 2013 74% say things will continue to pick up for marketing in 2014 Focussing on clients’ overall expectations © 2014 AAR privacy & legal
  7. 7. How are Marketers feeling? 90% are more confident in their team’s ability to perform than 2013 61% believe they have a better marketing structure in place for 2014 Focussing on clients’ view on their team and structure © 2014 AAR privacy & legal
  8. 8. How are Marketers feeling? 78% agree that marketing is getting better at demonstrating ROI to the board 68% say their remit is growing to be genuinely ‘marketing’ v just comms Focussing on clients’ view of their remit © 2014 AAR privacy & legal
  9. 9. What are their top challenges? 63% say increase in competition 55% say understanding consumers’ requirements 53% say low or changing budgets © 2014 AAR privacy & legal
  10. 10. Three code question Q.20. What are the three biggest challenges that you face in marketing your brands? Base: Total Respondents Clients Only (100) 6% 7% 11% 12% 16% 18% 19% 38% 53% 55% 63% No time or budget to test new ideas Understanding emerging channels Analysing data and information from multiple sources Getting senior stakeholder buy-in Understanding which channels work and which… Working with procurement to an agreed agenda Managing all agencies to one agenda Getting the best ideas out of agencies Low budgets/changing budgets Understanding consumers' requirements Increase in competition Client Side Biggest Challenges Currently Facing Clients Total Results
  11. 11. And the agencies top challenges are exactly the same 72% claim more competition 49% downward pressure on margins 3rd was challenge of managing talent - 45% recruiting new and 40% retaining experience Interestingly – only 6% state lack of new biz – and they could tick multiple options © 2014 AAR privacy & legal
  12. 12. Three code question Q.17a. What are the three biggest challenges your agency is currently facing? Base: Total Respondents Agencies Only (100) 0% 1% 6% 9% 11% 11% 13% 17% 19% 40% 45% 49% 72% Unrealistic commercial agreements Increased workload compared to scope of work Lack of new business Keeping up with change/developments in the industry Resourcing new business Cost/frequency of incumbent pitching Increases in operational costs Recruiting senior people Recruiting specialist skills Retaining experienced staff Recruiting talent Pressure on profit margins Increase in competition Agency Side Biggest Challenges Currently Facing Agencies Total Results
  13. 13. The budget perspective is very encouraging Only 8% of Clients state their budget for 2014 is less than in 2013 © 2014 AAR privacy & legal 60% 32% 8% 0% More than 2013 Same as in 2013 Less than 2013 Don’t know
  14. 14. For the 60% of clients who are spending more It’s a mixed plan but, interestingly, 80% will be adding capability and 70% capacity, which sounds positive for new and organic business development © 2014 AAR privacy & legal 42% 46% 66% 70% 74% 80% Undertake more agency-type work in-house Make structural changes that will enable us to better manage the agency roster Switch to more project-based agreements Add additional capacity to my existing agency roster Switch to more retained-based agreements Add additional capability to my existing agency roster
  15. 15. For those looking to spend the same or less A different slant, with the opportunity to demonstrate the value of tenure and efficiency for existing relationships © 2014 AAR privacy & legal 40% 48% 58% 62% 68% 70% 72% 75% Consolidate my existing agency roster Undertake more agency-type work in-house Reduce size of the agency roster Negotiate agency fees Extend contracts with existing agencies rather than going to the market Switch to more retained-based agreements Increase my agencies' accountability for ROI Switch to more project-based agreements
  16. 16. Has any of this hit the market yet? This is the agency view of what they are seeing so far © 2014 AAR privacy & legal 60% 32% 8% 0% More work, same scope More work, extended scope Neither Don’t know
  17. 17. Although, interestingly, agency competition is the “client” “It’s how we want to evolve as a company, to have a more centralised approach to our work. Also it keeps all our ideas in one place” - Client view “We are looking to develop our own talent and do new things internally while doing more traditional work outside with agencies” – Client view “Clients spend can be quite high, so I guess they see significant ROI in the long run by investing more internally” – Agency view “Clients are spending more for sure but they are keeping some of it in-house from a strategic point of view and we are just getting the tactical stuff” – Agency view These were some of the quotes when probed further © 2014 AAR privacy & legal
  18. 18. More new business opportunities in 2014/15? The research says ‘yes’… We asked clients how many new agencies they were expecting to add to their roster in 2014/15 © 2014 AAR privacy & legal 7% 26% 50% 14% 3% 0% None One Two Three Four Five or more
  19. 19. Converting to Win – Need to know From the clients’ perspective, these are the main ways agencies let themselves down during the pitch © 2014 AAR privacy & legal 58% 60% 62% 62% 68% 72% 75% 80% Wasting time playing the entire brief back to us Missing the brief entirely Ideas poorly thought through Senior people talking too much Lack of enthusiasm Asking the wrong questions Poorly presented ideas Not fully understanding my challenge/opportunity
  20. 20. Converting to Win – Need to know From the clients’ perspective, these are the main ways agencies let themselves down during the pitch © 2014 AAR privacy & legal 41% 43% 48% 49% 51% 55% 57% 58% Asking no questions Lack of demonstrated interest in our existing agency roster Inability to answer our questions Not bringing the core team to the pitch Poor time management Missing key sections of the brief Using obvious templates not tailored to us Unable to convert insight into thinking/ideas
  21. 21. And finally – the wish list? 29% of clients would like to see more innovation from agencies 16% of clients would like to see more flexibility 13% of clients would like to see better ideas 52% of agencies would like clients to be more open minded to ideas 21% would like clients to respond faster to proposals 13% would like clients to be better at strategic planning We asked clients and agencies what the one thing they wanted from each other was and grouped the replies © 2014 AAR privacy & legal
  22. 22. Final thoughts? What’s enlightening or surprising? What confirmed your thoughts? Next steps? © 2014 AAR privacy & legal
  23. 23. Thank you for coming All feedback gratefully received

×