The document discusses the future of advertising and agencies in a networked society. It outlines three possible scenarios for the future, including a worst case scenario where agency revenue declines by £16 billion. The document also discusses the rise of social media and how brands are integrating social platforms into their communications strategies. It analyzes consumer behavior on social media and how agencies may need to change to adapt to shifts in consumer control, responsibility, and expectations around advertising and data sharing over the next decade.

1. The future of advertising and agencies in a networked society

2. Three possible scenarios

3. The worst case scenario

4. A £16bn revenue gap

5. 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

6. Social media and brand communications

7. Who uses social media?

8. New models of brand communications Participation

9. New advertising formats

10. 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

11. A case example of social media integration

12. A case example of social media tracking

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

14. ‘ Expansiveness’

15. ‘ Popularity’

16. ‘ Reciprocity’

17. Network size is predictable

18. ...as is network flow

19. … as is circulation between networks

20. Agencies and social media The Delphi research

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

22. 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

23. “ 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

24. “ 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

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

26. Assessing the top-line business impact

27. Impact

28. Possible structure of the industry in 2016

29. Total commercial advertising 1996-2016

30. “ 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…