Observatory International Curated Newsletter – July 2022
Agency Roster Models
Getting the right agency roster model for your business is a key component to marketing success. New research from the WFA, co-authored by us at the Observatory International, shows that many companies are undergoing a period of change.
An array of challenges such as the global pandemic and exponential rise of digital, combined with added pressure in areas such as sustainability and diversity and inclusion, meant that 75% of major multinationals said that they were only ‘somewhat satisfied’ or less with their current agency roster structure. A period of constant evolution is projected, as brands seek to deliver their marketing communications more effectively.
Please get in touch if you would like to discuss our learnings from this report in more detail.
Industry investment forecasts are starting to sound a note of caution as 2022 half-year figures reveal a less-successful position than originally expected. While adspend had recovered from the pandemic-driven decreases, the current climate of war, inflation, supply chain issues, soaring energy prices and a cost-of-living crisis are causing a negative impact on spending.
2022 itself won’t be overly impacted, however some speculators are talking about the risk of spend “falling off a cliff” in 2023. There are many factors set to influence this early pessimism, but marketing budgets – and efficiencies within marketing operations – are a key topic to have on every agenda.
At the same time, a new Nielsen study shows that brands are not spending enough on their media plans to fully maximise their ROI capabilities. According to the report, 50% of planned media channel investments are too low.
Digital Talent Crisis
There has been much talk about a ‘talent crisis’ across the industry, with brands and agencies alike struggling to attract and retain talent. Tech talent in particular is proving to be an area of concern. The great digital acceleration continues at pace and companies need to be technologically strong to succeed. McKinsey has produced 10 key tips to help CEOs and marketing leaders develop and attract the right digital talent and build a digital mindset across an organisation.
Positive Pitch Action
Access to the right talent from an agency perspective is often a reason for running a pitch, but when thinking about pitching business it is important to acknowledge a wider number of factors than perhaps previously thought.
In the UK, ISBA recently launched their ‘Pitch Positive Pledge’ which is a joint initiative that seeks to improve the behaviours of agencies and advertisers around pitching. Particular focus is given to both the human and environmental costs, which have often lacked consideration when undertaking a pitch process. Agencies, intermediaries, advertisers and industry bodies have all signed up in a concerted effort to drive positive change within the industry.