4A's Agency2020 Report

Unleashing Global Marketing Potential™

Agency2020 Initial Quant Debrief• Page 1Unleashing Global Marketing Potential™

V5 Revised 03/03/14

Quantitative Results Discussion March 6th 2014


Agency2020 Initial Quant Debrief• Page 2

Today’s Purpose

• Review of Quant results

– Trends

– Opportunities & Challenges

– Characteristics of Over-Performers

– Client - Agency differences

– Media - Creative Agency differences

– Different cuts (Size, Age, Affiliation)

• Identifying key insights

• Aligning on implications

• Next Steps

Aligning on Key insights



Research Sources



Research Input

Creative

Client

Media

Other*

Qualitative Quantitative

*E.g., educational institutions, .com’s (Facebook, Twitter, Google, etc.)

Desktop Research

Creative

Client

Media

Other

US Respondent Distribution

• Audit of industry-relevant news coverage

• Sources incl. Adage, Adweek, WARC, HBR, etc.

• Deep dive into M2020 Research on client organizations

• 75 Vision Interviews with thought-leaders

• 34 Creative• 24 Media• 12 Client• 5 Other

• Incl. important sub-segments e.g., Millennial, Procurement

• 110 M2020 interviews with CMOs, CEOs, opinion Leaders

• 725 total completed survey• 409 agency• 247 client• 69 Other

• US data was used for analysis



In Vision Interviews, we spoke to Agency, Client, and Media Thought-Leaders…



Over 250 Marketing2020 CMO interviews



…from leading marketing organizations



Client Respondent Profile

Who did we talk to?

6%

19%

38%

38%

Years of professional work experience

<5 year

5-15 years

16-25 years

>25 years

3%

21%

3%

9%

4%

4%13%

3%

11%

5%

1%5%

20%

Type of industryMedia/Communications

Consumer Packaged Goods

Telecom/TV/Internet

Manufacturing

Transportation/Logistics

Retail

Healthcare

Nonprofit/Association

18%

45%

25%

13%

Current position

Board/EVP/SVP/ C-suite

VP/Director/ Head

Manager

Other



Overall Agency Respondent Profile

Who did we talk to?

5%

14%

34%

48%

Years of professional work experience

<5 year

5-15 years

16-25 years

>25 years

21%

42%

36%

2%

Type of agencyIndependent/ privatelyowned - single shareholder

Independent/ privatelyowned - multipleshareholder

Part of a holding company

Other

58%28%

8%6%

Current position


VP/Director/ Head

Manager

Other



US Creative Agencies

Who participated?



Creative Agency Respondent Profile

68%

30%

2%

Type of Agency

Independent/privatelyowned

Part of holding

other 58%28%

7%7%

Current position


VP/Director/ Head

Manager

Other

2% 2%

7%

37%

24%

9%

19%

Average rate of Revenue

Decline more than 20%per year

Decline between 20% and10% per year

Decline between 10% andflat per year

Growth between Flat and10% per year

Growth between 10% and20% per year

28%

26%

27%

18%

Size of Agency

0-49 FTE

50-130 FTE

131-490 FTE

491 FTE and more

6. 10.

27. 8.

Who did we talk to?



US Media Agencies

Who Participated?



Media Agency Respondent Profile

24%

76%

Type of Agency


Part of holding

62%

24%

10%4%

Current position


VP/Director/ Head

Manager

Other

2%

4%

34%

36%

4%

20%

Average rate of Revenue

Decline between 20% and10% per year

Decline between 10% andflat per year

Growth between Flat and10% per year

Growth between 10% and20% per year

Growth over 20% per year

4%

18%

10%

68%

Size of Agency

0-49 FTE

50-130 FTE

131-490 FTE

491 FTE and more

6. 10.

27. 8.

Who did we talk to?



We analyzed the Quant results from multiple perspectives

Data cuts performed

Performance

• “Over-performers” (revenue growth >10% last 3 years) vs “The Rest” (revenue growth <10%)

• “Over-performers” vs “Bottom 3” (revenue decline)

Type

• Agency vs Client

• Creative vs Media

Size

• Large Creative Agency (>191 FTE) vs Small Creative Agency (<55 FTE)

• FTE (0-49, 50-130, 131-490, >491)

Respondent Experience

• >15 years experience vs <15

Note: Other cuts (e.g., by region/location) have been explored, but have not been as discriminating



Young People

• Rising Stars in-depth interviews

• Extra online research

• Millennial in the Agency World

Who did we not talk to enough?And what did we do to compensate?

Global Agencies

• Online research

Under-performers

Over-Performers

17

Validation

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=T2hAYWXkQLorVM&tbnid=fOvfWnz8uUdnCM:&ved=0CAUQjRw&url=http://logobytes.com/york-university-logo.html&ei=Np88Us7QLpHSrQfDn4DIBw&bvm=bv.52434380,d.bmk&psig=AFQjCNHaYj6ZMBJFlphAkVIyXPLTlm3yzw&ust=1379791027628006

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=T2hAYWXkQLorVM&tbnid=fOvfWnz8uUdnCM:&ved=0CAUQjRw&url=http://logobytes.com/york-university-logo.html&ei=Np88Us7QLpHSrQfDn4DIBw&bvm=bv.52434380,d.bmk&psig=AFQjCNHaYj6ZMBJFlphAkVIyXPLTlm3yzw&ust=1379791027628006



Industry Change DriversTrends



Change Drivers

1. Mega Trends

2. Client Trends (Marketing2020)

3. Agency Trends

Megatrendsthat challenge us all

Social marketing

Purposeful Marketing

Collaborating with Consumers

Globalization

Opportunity to influence business

Infobesity

Privacy risks

Organizational silos

Doing more with less

Touch point consistency

Ability to stay current



Many industry change drivers emerged from the Vision Interviews

Proliferation of Media

Rise of Procurement

Budgets

Super-Group Mergers

New Technology

In House Agencies

CMO Turnover

Crowd-sourcing

Big Data

Open Innovation

Social Media

Programmatic Media

Proliferation of idea

providers

New Platforms

Connected Consumers

Transparency

Millennials

Talent

Hispanics

Cultural Evolution



The top three trends Agreement

Agency Client

1

2

3

0 10 20 30 40 50 60

New providers of ideas (e.g., ideaboutiques, Facebook, Twitter)

Big data (e.g., media buying basedon big data)

Increased focus on measurement,ROI, and demonstrating the value

of Ideas50%

38%

31%

0 10 20 30 40 50 60

Big data (e.g., media buying basedon big data)

New providers of ideas (e.g., ideaboutiques, Facebook, Twitter)

Increased focus on measurement,ROI, and demonstrating the value

of ideas54%

44%

43%

Note: low base “Client” – conclusions are indicative



But Important differences too …

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

Increased focus on measurement, ROI and demonstrating the values of Ideas


New providers of ideas (e.g. Idea Boutiques, Facebook, Twitter)

Q1. What are the top 3 trends that you believe will impact the future role of agencies



How are Agencies reacting?



Clients do not see agencies evolving as radically as agencies claim to be

3,4

2,8

49%

19%

20%

26%Stra

tegy

Mean% More Iterative/Iterative % More Radical/Radical

Agency

Client

3,1

2,7

35%

14%

27%

26%Stru

ctu

re Agency

Client

3,5

2,9

51%

26%

19%

23%

Cap

abili

tie

s

Agency

Client

Increased focus on measurement, ROI and demonstrating the values of IdeasIn reaction to this trend, please describe your agency’s response

2%

21%

3%

30%

2%

23%

NA

Q3

Q5

Q4



But clients do not see agencies evolving as radically as agencies claim to be

3,0

2,6

34%

17%

29%

31%Stra

tegy


Agency

Client

2,9

2,3

26%

6%

33%

34%Stru

ctu

re Agency

Client

3,2

2,7

40%

20%

24%

26%

Cap

abili

tie

s

Agency

Client

New providers of ideas (e.g. Idea Boutiques, Facebook, Twitter)In reaction to this trend, please describe your agency’s response

7%

29%

9%

34%

7%

31%

NA

Q3

Q5

Q4



But clients do not see agencies evolving as radically as agencies claim to be

3,1

3,2

40%

35%

29%

24%Stra

tegy


Agency

Client

3,0

2,8

36%

21%

31%

27%Stru

ctu

re Agency

Client

3,2

3,1

45%

35%

23%

27%

Cap

abili

tie

s

Agency

Client

Big Data (e.g. media buying based on big data)In reaction to this trend, please describe your agency’s response

5%

24%

6%

38%

5%

24%

NA

Q3

Q5

Q4



Trends – Independent vs Holding

3,5

3,4

51%

46%

20%

19%Stra

tegy


Independent

Part of holding

3,1

3,4

34%

39%

29%

20%Stru

ctu

re Independent

Part of holding

3,5

3,5

52%

50%

17%

20%

Cap

abili

tie

s

Independent

Part of holding


2%

1%

4%

6%

2%

1%

NA

Q3

Q5

Q4



There were no “wow” differences when comparing trends from small vs. big creative agency

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%














Small Creative Agency Large Creative Agency


* Only US data Based on the scores of the Creative agencies

No significance testing completed – advise if you need



Cut Small vs Big Creative agency

3,4

3,2

49%

38%

18%

21%


3

3,1

25%

35%

35%

29%

3,5

3,4

51%

50%

15%

23%


0%

10%

0%

6%

0%

2%

NA

Q3

Q5

Q4

Stra

tegy

Stru

ctu

reC

apab

iliti

es

Small Creative Agency

Large Creative Agency





Note: very low base “Small” & “Large” – do not make hard conclusions

No big differencesNo big differences



More than any other, Media agencies fully recognize the importance and impact of Big Data and new revenue streams

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%














Creative agency Media agency


Note: very low base ‘Media agency’ do not make hard conclusions



Media agencies are more focused on new revenue streams than creative agencies…

Zooming in on top 3 trends

Creative

0 20 40 60

Big Data (e.g., mediabuying based on big

data)

New providers of ideas(e.g., idea boutiques,

crowdsourcing,Facebook, Twitter)

Increased focus onmeasurement, ROI, anddemonstrating the value

of ideas

49%

33%

33%

1

2

3

Media

0 20 40 60 80

New agency revenuestreams (e.g., new

products, experiences,cultures)


of ideas


data)68%

38%

60%




Media agencies are more aligned with over-performers…

Focus on new revenue streams is the difference

1

2

3

Media

0 20 40 60 80


products, experiences,cultures)


of ideas

Big Data (e.g., mediabuying based on big data) 68%

38%

60%

Over-performers

0 20 40 60


productes,experiences,

cultures)

Big data (e.g., mediabuying based on big

data)

Increased focus onmeasurement, ROI,and demonstratingthe value of Ideas

45%

35%

36%



0 20 40 60

New providers of ideas(e.g., Idea Boutiques,

Crowdsourcing, Facebook,Twitter)

Big data (e.g., mediabuying based on big data)


of Ideas

54%

31%

38%

…whereas creative agencies are more aligned with the “rest”

More focused on the competition, not developing their own capability

Creative

0 20 40 60


data)

New providers of ideas(e.g., idea boutiques,

crowdsourcing,Facebook, Twitter)


of ideas

49%

33%

33%

1

2

3

45%

35%

36%

Rest


footer text to be changed in Slide Master • Page 40Unleashing Global Marketing Potential™

A2020 Over-PerformersWhat makes them winners?



Who are the Over-performers?

Over-performers self-reported revenue growth >10% in last 3 years

25%

27%26%

22%

Size of the Agency

0-49 FTE

50-130 FTE

131-490 FTE

491 FTE and more

84%

16%

Agency offering

Creative Agency

Media Agency

70%

29%

2%Type of Agency


Part of holding

other

0-49 FTE n=3150-130 FTE n=34131-490 FTE n=33491 FTE and more n=27

Creative Agency n=105Media Agency n=20

Independent/privately owned n= 87Part of holding n=36 Other n=2

Only US data

n=125

7. 6.

8.



Over-performers are more focused on new revenue streams than new providers of ideas

Less looking at the competition, more evolving the company

45%

36%

35%

30%

28%

26%

22%

18%

14%

14%

14%

11%

6%

54%

38%

24%

31%

20%

28%

23%

19%

18%

20%

11%

10%

5%














Over-performers Rest

Increased focus on measurement, ROI and demonstrating the values of Ideas

Big Data (e.g. media buying based on big data


What are the top 3 trends that you believe will impact the future role of agencies

**

**represents a difference that is significant (95% of confidence) *represents a difference that is indicative (90% of confidence)



Across the board, over-performers are evolving more radically in response to trends

3,7

3,2

66%

41%

14%

24%Stra

tegy


Over-perform

Rest

3,4

2,9

52%

26%

21%

35%Stru

ctu

re Over-perform

Rest

3,7

3,3

64%

47%

14%

24%

Cap

abili

tie

s

Over-perform

Rest


0%

1%

0%

1%

0%

0%

NA

Note: low base both groups – results are indicative

Q3

Q5

Q4




3,5

2,9

51%

32%

18%

38%Stra

tegy

% More Iterative/Iterative % More Radical/Radical

Over-perform

Rest

3,2

2,8

42%

32%

24%

40%Stru

ctu

re Over-perform

Rest

3,5

3,0

56%

37%

18%

29%

Cap

abili

tie

s

Over-perform

Rest

Big Data (e.g. media buying based on big data)In reaction to this trend, please describe your agency’s response

4%

4%

4%

4%

4%

4%

Mean

NA

Q3

Q5

Q4





3,7

3,5

61%

54%

11%

21%Stra

tegy

% More Iterative/Iterative % More Radical/Radical

Over-perform

Rest

3,3

3,1

48%

33%

25%

30%Stru

ctu

re Over-perform

Rest

3,7

3,4

64%

44%

16%

16%

Cap

abili

tie

s

Over-perform

Rest

New agency revenue streams (e.g., New Products, Experiences, Cultures)In reaction to this trend, please describe your agency’s response

0%

2%

0%

2%

0%

2%

Mean

NA

Large gaps across all

three measures

Q3

Q5

Q4


Big Insights

Purposeful Positioning

Total Experience

Harvesting learning and leveraging skills

Building understanding and interdependent mindset

Energizing passion around the brand vision

Aligning strategy, targets and rewards

Creating structure and roles and responsibilities and aligning behavior

Drivers of Global Marketing Effectiveness



Big InsightsBig Insights


Total Experience



Clients doubt that agencies have the right data and analytics available

48% 49%45%

35%

60%54%

0%

20%

40%

60%

80%

100%

Our agency has the right data and analyticsavailable to measure effectiveness

Big data will help demonstrate the value ofcreative ideas

We have a structural approach in place totrack brand equity

Agency Client

% Strongly agree & Agree

Q7. Q8. Q9. Q10.

Note: low base “Client” – results are indicative

***

* Represents a difference that is indicative (90% confidence)** represents a difference that is significant (95% of confidence)



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%

80%

100%

Our agency has the right data and analytics available to measureeffectiveness

Big data will help demonstrate the value of creative ideas

Creative Media agency



Q7 Q8

**


**

1 2 3



Smaller creative agencies feel less equipped than larger creative agencies

Q7.

Small creative agencies feel

even less equipped

37%

50%

0%

20%

40%

60%

80%

100%

Our agency has the right data and analytics available to measure effectiveness


Large Creative Agency % Strongly agree & Agree

*



On all capability measures the agency rates itself higher than rated by clients

Agency Egos

45%

58%

35%41%

0%

20%

40%

60%

80%

100%

Our agency has sufficient capability in data analysis and analytics Our agency’s senior management sufficiently understands social and digital marketing

Agency Client

Q26. Q25.

Note: low base, conclusions ‘Client’ are indicative

Agency Leadership

**



Bigger agencies have more sufficient capabilities in data and analytics than smaller agencies

30%

44%45%

59%

0%

20%

40%

60%

80%

100%

Our agency has sufficient capability in data analysis and analytics

0-49 FTE 50-130 FTE 131-490 FTE >491 FTE

Note: low base, conclusions of all ‘FTE groups’ are indicative

Q26.

% Agree

**4


**4 **2, 4

**4

1 2 3 4



Media agencies have the edge over creative when it comes to data

41%

66%

0%

20%

40%

60%

80%

100%



Note: low base “Media”, do not make hard conclusions

% Agree

Q25 Q26


**


footer text to be changed in Slide Master • Page 54Unleashing Global Marketing Potential™

A2020 Over-PerformersWhat makes them winners?



Over-performing agencies have more developed capabilities in Social and Big Data

55%

34%

0%

20%

40%

60%

80%

100%



**



Zooming in:Over-performers vs Bottom 3

55%

34%

0%

20%

40%

60%

80%

100%


Over-performers Bottom 3

Note: very low base both groups – no hard conclusions

Note: Even though significant, no hard conclusions due to low base

when over vs bottom 3

**



Over-performers are confident that big data is well integrated at their agency

60%

49%

10%

54%

40%45%

15%

47%

0%

20%

40%

60%

80%

100%

Our agency has the right dataand analytics available to

measure effectiveness

We have a structural approachin place to track brand equity

I personally think that data andKPI driven thinking is the enemy

of creativity in marketing

Big data will help demonstratethe value of creative ideas

Overperformers Rest


All embrace big data – not the enemy of creativity

Q7. Q8.

**




0 10 20 30 40 50 60 70 80 90 100

Overperformers

Bottom 3

54%

41%

Note: very low base both groups –no hard conclusions

Q7 Our agency has the right data and analytics available to measure effectiveness

0 10 20 30 40 50 60 70 80 90 100

Overperformers

Bottom 3

Q8 Big data will help demonstrate the value of creative ideas



60%

39%

54%

34%


**

**


footer text to be changed in Slide Master • Page 59

Big data is more integrated in the over-performing agencies

60%

49%

10%

54%

40%45%

15%

47%

0%

20%

40%

60%

80%

100%

Our agency has the right dataand analytics available to

measure effectiveness

We have a structural approachin place to track brand equity

I personally think that data andKPI driven thinking is the enemy

of creativity in marketing

Big data will help demonstratethe value of creative ideas

Overperformers Rest

% Strongly agree & Agree Only US data Based on the scores of the agenciesThe “unknown” category is excluded (n=71)

Overperformers n=125Rest n=177

Q7 Q9 Q10 Q8


**



Purposeful PositioningBig Insights


Total Experience



Clients feel more purposeful

49%

71%

0%

20%

40%

60%

80%

100%

The positioning of the brand or organization I work with is societally purposeful

Agency Client

% Strongly agree & Agree • Only US data • Based on the scores of the Agencies & Clients• The “other” category is excluded (n=38)

Q14



**



Clients do not perceive agencies as having clear positioning…

75%

46%

0%

20%

40%

60%

80%

100%

Our agency has a clear positioning

Agency Client


Q12



**



Or having a societal purpose…

51%

38%

0%

20%

40%

60%

80%

100%

The positioning of our agency is societally purposeful

Agency Client


Q13



**


footer text to be changed in Slide Master • Page 64

On all positioning measures, “winners” over-perform the less performing companies

79%

57%53%

71%72%

48% 46%52%

0%

20%

40%

60%

80%

100%

Our agency has a clearpositioning

The positioning of our agency issocietally purposeful

The positioning of the brand ororganization I work with is

societally purposeful

We ensure that all employeesare fully engaged with our

purpose

Overperformers Rest

Q12 Q13 Q14 Q15

**




79%

61%

0%

20%

40%

60%

80%

100%

Our agency has a clear positioning




Q12


**




57%

39%

0%

20%

40%

60%

80%

100%

The positioning of our agency is societally purposeful




Q13


*




71.00%

32.00%

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

We ensure that all employees are fully engaged with our purpose




Q15


**



Total ExperienceBig Insights


Total Experience



Bigger agencies sense the agency’s role generalizing more than smaller agencies

30%

44%

62%65%

0%

20%

40%

60%

80%

100%

Agency roles will generalize towards everybody doing everything

0-49 FTE 50-130 FTE 131-490 FTE >491 FTE

Note: low base – all ‘FTE groups’ – results are indicative


Q16 Q17

1 2 3 4


**2, 4**3

HOW:

Organizing for Growth

Big Insights


Total Experience



This necessitates moving from a “bowtie” to “diamond” model

• Traditional, transactional approach• One point of contact between

company and stakeholder• Functional silos

• Collaborative, team approach• Many points of contact between

company and stakeholder• Networked – cross-functional



For example, as in…

Account Manager

ClientContact

Account team

Planning team

Creative

Finance

Production

Digital

Marketing

R&D

Executives

Finance

Account Manager

ClientContact

Account team

Planning team

Creative

Finance

Production

Digital

Marketing

R&D

Executives

Finance

From…

To…

Silo’d

Transactional

Collaborative

Networked



Inspire



Clients and Agencies equally engage with employees

60% 61%

0%

20%

40%

60%

80%

100%

We ensure that all employees are fully engaged with our purpose

Agency Client


Q15





So let’s back up: how inspiring is the industry?

• McCann presented “The Truth About Advertising” at last years 4A’s Transformation

• Widespread quant/qual survey that included industry and consumers

• High-level compare/contrast on how “inspiring” the industry – killer findings include:

– 70% of people in industry think “the best is behind us”

– 56% of people in advertising think that industry people wish they were doing something more creative

– 80% of people in advertising think advertising is a “sink or swim” environment

– 57% of industry folks think the industry has a problem attracting/retaining talent

– 69% of consumers think advertising has the power to change the world (!)

Killer findings from McCann’s presentation at last year’s Transformation

See complete findings inside Desk Research Reader under “Inspire”



Agencies’ missions celebrate “what we do” –rather than celebrating “what the world can do”

To help the next generation of women develop a positive

relationship with the way they look – helping them raise their

self-esteem and realize their full potential

To give people the power to share and make the world more

open and connected

To create the world’s most compelling content – through a relentless focus on the work, the

work, the work

To bring inspiration and innovation to every athlete in

the world* (*if you have a body, you have an athlete)

To organize the world’s information and make it

universally accessible and useful

To redefine how stories can be told across brand, digital, and

commerce

To refresh the world, to inspire moments of optimism and

happiness, to create value and make a difference

To give everyone the power to create and share ideas and

information instantly, without barrier

To be the best creator of ideas that truly move people – bar none

To create a better everyday life for the many people

To be Earth’s most customer-centric company, where

customers can find and discover anything they might want to buy

online

To create the most meaningful brand connections with the lives of

people everywhere



Focus



Agencies and clients are generally well aligned when it comes to the best measures

0 10 20 30 40 50

Client Brand Awareness

Client sales or profit levels

Consumer Engagment

0 10 20 30 40 50 60

Client Market Share

Brand Equity / Health



Consumer Engagement

AgencyClient

1

2

3

1

2

3

47%

36%

33%

48%

36%

29%

29%

29%



For over-performers, consumer engagement and sales best capture the value of the agency

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 Revenue Growth



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

Consumer engagement



Q6. Which 3 measures or metrics best capture the value of the ideas that agencies create for brands?

* Only US dataBased on the scores of the agenciesThe “unknown” category is excluded (n=71) Over-performers n=125

Rest n=177

Total experience

Over- are more focused on client revenue growth

**

**




Over-performers are using “new” metrics

Zooming in on capabilities

54%

34%

27%

26%

12%

42%

29%

32%

37%

16%

Consumer engagement




Buzz/ Advocacy

Overperformers Rest


* Only US dataBased on the scores of the agenciesThe “unknown” category is excluded (n=71) Over-performers n=125

Rest n=177

Engagement, revenue growth, and innovation are

more “new” metrics

Brand equity, awareness, and buzz, are more

traditional



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 Market Share


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


Measurement – creative versus media





Organize



Lack of clarity around roles and responsibilities is a major issue

34%

45%

32%

41%38% 38%

0%

10%

20%

30%

40%

50%

60%

70%

80%

It is fully clear to everybody whereindividual responsibilities start and end

within the agency


between the agency and the client

It is fully clear to everybody whereindividual responsibilities start and endbetween our agency and other agencies

working on the same brief/ client

Agency Client

Agency thinks roles between agency-client are more clear than the client

Client thinks roles between multiple agencies are more

clear than the agency



Even for over-performers, huge opportunity to create clarity around roles and responsibilities

36%

50%

39%34%

43%

27%

0%

20%

40%

60%

80%

100%


within the agency


between the agency and the client

It is fully clear to everybody whereindividual responsibilities start and endbetween our agency and other agencies

working on the same brief/ client

Overperformers Rest

% Agree * Only US data (& only M2020 US data)Based on the scores of the agenciesThe “unknown” category is excluded (n=71)

Structure is more clear for over-, but even the

winners haven’t cracked it

Importance of clarity in partnerships – role of client to

define roles/responsibilities

Q20 Q21 Q22


**



Where do agencies stand when it comes to Millennials?

Significant differences across three dimensions

Q24 Our Agency is successfully attracting, developing, and retaining Millennials

0

10

20

30

40

50

60

70

80

90

100

% Agree/Strongly Agree

Large CreativeAgency

Small CreativeAgency

0

10

20

30

40

50

60

70

80

90

100


Creative

Media

0

10

20

30

40

50

60

70

80

90

100


Agency

Client

56%

28%

55%62% 60%

44%

Large more appealingMedia has

edge

** ** **



Over-performing agencies more successfully attract, develop, and retain Millennials

70%

49%

0%

20%

40%

60%

80%

100%

Our agency is successfully attracting, developing and retaining Millennials

Overperformers Rest


Q24

**



Q27 There is a clear career path for me

Employees at over-performing agencies see a more clear career path…

Fully agree /Agree

Neutral

Disagree/ fullyDisagree

Over-performers

11%

15%

75%

Fully agree /Agree

Netural

Disagree /Stronglydisagree

Rest

64%

21%

15%

** (Fully agree)




Build



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



Mobile

Q28. Which of the following capabilities will become more important for your agency in the next 5 years?

Agencies more focused on big data

– maybe clients aren’t sure yet if

agencies will play a role

**



The top three capabilities differ from the client and agency perspective

Both are focused on data as a trend – so could it be that Clients are not yet convinced that agencies will play a role?

0 20 40 60 80 100

Mobile

Branded Content Creation


0 20 40 60 80 100

Branded Content Creation

Consumer/Customer Engagement

Mobile 61%

60%

51%

77%

54%

52%

Agency Client




Over-performers are combining data analytics with consumer understanding to get to Big Insights

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%




Mobile




Brand strategy




Brand positioning




Advergaming

Other

Overperformers Rest




Q28 Which of the following capabilities will become more important for your agency in the next 5 years?

All understand importance of big data, but

over- are focused on big

insights

Innovation more important

for over-

Over- have moved beyond focusing on mobile and digital/social – it’s

just the way things are

**



Results indicate that Media agencies may be focusing on different capabilites than Creative agencies

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%



Mobile





Brand strategy



Brand positioning





Advergaming

Other



Old school capabilities

New school capabilities Data

Insights


Awaiting significance

testing



Media leadership is leading by example when it comes to social

55%

80%

0%

20%

40%

60%

80%

100%

Our agency's senior management sufficiently understands social & digital marketing


Note: low base “Media”, do not make hard conclusions

% Agree

Q25

Agency leadership


**



Senior mgmt. at winning agencies better understand digital and social – leadership?

71%

49%

0%

20%

40%

60%

80%

100%

Our agency’s senior management sufficiently understands social and digital marketing


**



Q24. Please score your agency’s capabilities versus the job requirements 5 years from now

42%

23%

%

20%

40%

60%

80%

100%

%Very Good & World Class

Agency Client

Clients are not entirely convinced of how equipped their agency is

**



Q24. Please score your agency’s capabilities versus the job requirements 5 years from now

54%

34%

%

20%

40%

60%

80%

100%

%Very Good & World Class

Overperformers Rest

Over-performing agencies feel better equipped for the future

**



And employees get more training …

Q30 How many days of training do you receive on a regular basis?

More than 3days per year

Between 2-3days per year

Less than 2 daysper year

No formaltraining

Over-performers

23%

13%46%

18%

More than 3days per year

Between 2-3days per year

Less than 2 daysper year

No formaltraining

Rest

29%

17%

29%

25%

** (>3 days)




…which they feel is of a higher quality

Q29 How would you rate the quality of your agency’s training program (1-10)?

6 and higher

5 and lower

Over-performers

40% 60%

Rest

29%

17%

29%

25%

6 and higher

5 and lower

52% 48%

** ( >6)




Thank you

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