AGENCY & MARKETER PERSPECTIVE ON THE ......The 2015 RSW/US New Year Outlook survey was completed by...

2015NEW YEAROUTLOOK REPORT

AGENCY & MARKETER PERSPECTIVE ON THE BUSINESSOF ADVERTISING AND MARKETING

BACKGROUNDThis study was commissioned by RSW/US. RSW/US is an outsourced lead generation firm that exclusively services marketing service firms (of all sizes and types). RSW/US works with over 50 agencies of various types/sizes, operating as their outsourced sales team. RSW/US was started in 2005.

In 2010, RSW started RSW/AgencySearch. To-date, RSW/AgencySearch has managed over 30 searches for marketers across a range of different categories, helping them find better agencies. Their model is unique to the industry.

The exposure to the agency and the marketer world has armed RSW with perspective unmatched in the industry. This perspective is woven throughout this survey report.

To learn more about RSW/US, visit www.rswus.com.

To learn more about RSW/AgencySearch, visit www.rswagencysearch.com.

Copyright RSW//US, GP 20 15 © www.rswus.com 513-559 -3111

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The 2015 RSW/US New Year Outlook survey was completed by 123 senior level Marketers and 158 Marketing Agency executives during December, 2014. The purpose of the survey was to glean insights relative to marketer and agency perspective as they each headed into 2015. Topics explored included “troubling trends”, spending expectations, the impact of Republican control of the House and Senate, the value of using search consultants to help manage searches, and the movement to consolidate agency rosters, among many others.

As in the past, Adweek contributed questions which were included in both the marketer and the agency survey.

In some cases, we compared the responses of questions in this survey to the same question asked as far back as 2010 to help provide some perspective on how things are changing - either for the good or bad!

Our hope is the key findings and implications from this study are of value as you kick your marketing and sales planning into gear for 2015.

The agency sample came from the RSW/AgencySearch database of over 5,000 marketing service companies in the U.S. and Canada ranging in size from under $5M in capitalized billings to over $100M. The disciplines of each Agency varied from full service advertising, to digital, to PR, to marketing consultancies.

The marketer sample came from our RSW/US database of over 80,000 marketing decision maker contacts. Company size, location, and size varied.

If you would like to reproduce any of our findings in any format whatsoever, please give either Mark Sneider or Lee McKnight a call (513-559-3101/3111) or email us at [email protected] / [email protected].

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www.rswus.com

http://www.rswagencysearch.com/

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SURVEY RESULTS AND IMPLICATIONSThe first question was asked of both marketers and agencies and was a first of its kind for RSW/US. Given the speed with which the marketing and advertising world is changing, we thought it would be interesting to find out what each side thought were the most troubling trends (about the other side) in an effort to help improve relationships between agencies and marketers.

Marketers want better equipped agencies and agencies say marketers are operating in ways that are limiting their ability to go there – wanting the best of both worlds.

An interesting aspect about these findings- for the most part, what marketers say is troubling and what agencies

say is troubling is in direct conflict with each other.

We’ve attached the full set of open-ended responses as an addendum to this report. The following provides a sample summary of the most often mentioned comments from marketers and agencies.

Some interesting findings indeed!

What Troubles Marketers

What Troubles Agencies

Lack of innovation

R isk taking is too conservative

Chasing the next shiny object

Marketers’ blind belief in anything new Overemphasize data w/o understanding it

Discounting value of ideas & creative thinking

Agencies have silos of

specialization/no strategy acrossplatforms

Lack of ability to stay brand consistent across platforms

Lack of value-add They move constantly, no loyalty

R

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Marketers are predominantly concerned with the agency struggle to effectively take advantage of the data, analytics, and digital phenomenon.

We’ve seen comments like this play out in past surveys: marketers concerned that their agency counterparts aren’t fully up-to-speed with the fast-paced changes in the digital and social space. We see this anxiety frequently play out on the RSW/AgencySearch side of our business as well. Marketers often come to us feeling like their agency isn’t keeping up with the pace of change - leaving them wanting a new, more progressive firm.

Marketers’ more frequently mentioned “troubling trends” about agencies were:

Agencies have silos of specialization/no strategy across platformsLots of turnover in creative and media teamsLack of innovationBeing asked “what’s your biggest marketing hurdle” - lazy way to start a conversation!They over-emphasize data without really understanding it“Dashing” to programmatic marketing without grasping itChasing the next shiny objectLess emphasis on marketing researchLack of value-add Cute/funny versus compellingFailure to understand metrics and use data appropriatelyLack of experience in digital spaceNot specific on how technology should be appliedSelling technology and not the solution

IMPLICATIONSThe key is for agencies to find incremental ways to work around this desire marketers have to get more for less (as we’ll see on the next page under “agency view of troubling trends”). Bring ideas to the table that don’t require a heavy drain on resources before the client comes to you demanding the world. What marketers are looking for today is a strategic partner and not just another creative vendor. I often tell our agency clients and prospects that “you all deliver the same stuff”…what’s going to set one agency apart from another is the thinking, the advances in analytics, and the value you can bring to a marketing client on-going. An easy mantra to live by is to make each and every day feel like it’s the first day of the relationship. Surprise, delight, and own the client’s business. If they don’t want to play…maybe they aren’t the right client.

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Agency concerns are primarily focused on three areas: marketer cost cutting, the short-term perspective of marketers, and the lack of loyalty they have toward agencies. As we’ll see later, marketers are moving toward using fewer agencies versus using multiple specialist agencies. This trend will only exacerbate the issues agencies have with marketers, as more agencies compete for fewer slices of the pie. It will put pressure on pricing, and short-circuit loyalty as marketers prune their list of agencies. Conversely, this trend to go with less rather than more might actually help, and result in building stronger strategic relationships with those agencies that remain on rosters.

Some of the more frequently mentioned “troubling trends” agencies see happening among marketers are the following:

Marketers have a blind belief in “anything new”Too much focus on lowest bidderInability to effectively use digital advertisingThey move constantly, no loyaltyLack of ability to stay brand consistent across platformsInability to give clear directionWant measurement, but unsure what to measureRisk taking is too conservativePiece-mealing out project workCMOs leavingShift to procurementDevaluing creativeIn-house agencies being set up at large corporationsDiscounting the value of ideas/creative thinkingShort-term focus

IMPLICATIONSThis is a bit tougher because there are several factors working against agencies (as they see it). I’d suggest that agencies focus on a few key action items to help counter the issues they’re seeing with marketers, in the hope they can change their behavior: 1) Value-add constantly at all levels…always...even in the smallest, inconsequential ways; 2) Penetrate deeply into organizations to counter the high levels of movement among marketers; 3) Stay ahead of your marketing partner with “baby steps” of incremental value.

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Speaking of troubling trends…let’s now talk politics!

Marketers and agencies aren’t too concerned (or too excited) about the new Republican leadership taking over Washington, DC. Only 19% of agencies and 24% of marketers say the Republican political shift will positively impact the advertising and marketing communities in 2015. The issues most mentioned are what you’d expect: lower taxes, less regulation, shift in spending from medical to defense, more confidence in business, leading to greater confidence in the USA.

We suspect the biggest impact from a change in political leadership will be a shift in where opportunities lie for agencies. While healthcare is relatively hot now, we could see shifts out of areas like healthcare and government-funded entities (i.e. public TV and not-for-profit associations) into new Republican favored sectors. As examples, if financial rules and regulations are eased, we could see more monies available for financial concerns to market their services. As banking restrictions are opened up, we could see greater access to capital which could drive more commercial real estate development and investment.

IMPLICATIONS

AGENCIES MARKETERS

24%19%

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Changes in the political climate, coupled with increasing confidence in the economy’s performance, are likely driving marketers and agencies to feel a bit bold about their spending projections in 2015 – for both their business, and as we’ll see next, their marketing...

Marketer confidence has grown steadily since 2013, with close to 90% of all marketers noting they’re likely to invest “somewhat” or “heavily” invest in their business infrastructure (people, equipment, etc.) in 2015. This is the second consecutive year where a significant jump in marketer confidence has driven a strong desire to spend.

MARKETERS

IMPLICATIONS

20142015 201389% 75% 57%

This bodes well for agencies as there is no longer the “hold back” mentality among marketers that seemed to permeate thinking 3-4 years ago. We’ve seen this play out among our own RSW/US agency clients and agency prospects we talk with daily. This year, more so than in years past, marketers are helping drive agency growth with increases in organic spending.

Anecdotally, we have felt a bit of this positive trend in our business. While we had another solid year in 2014 (growing 15%), we did notice a tendency for agencies to be slower in signing on with our program – because the rest of their business was so good. As we approached the end of this past year and roll into the start of this year, we’re seeing agencies move a bit more aggressively into our program…suggesting a recognition that relying on organic growth isn’t a good long-term strategy.

LIKELY TO INVEST EITHER “SOMEWHAT” OR “HEAVILY” IN

BUSINESS

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Agency confidence also remains strong. 95% of agencies state they will likely increase their investments in the marketing, sales, and people parts of their business either “somewhat” or “heavily”. As we’ll see later, many agencies believe the marketplace is getting more competitive, which is likely what’s driving a large number of agencies to say they’ll be increasing investments in 2015.

AGENCIES

95% 96% 87%

LIKELY TO INVEST “SOMEWHAT” OR “HEAVILY” IN MARKETING, SALES,

PEOPLE

2015 2014 2013

IMPLICATIONSAs we all know, 2008-2010 wasn’t a fun time for any agency, let alone any business. Key to helping avoid situations like that again are twofold: 1) effective diversification of client roster and/or type of business; and 2) investment (when you have the financial wherewithal to do it). There is never a “right” time to start a marketing/sales program for your agency, just like there’s never a “right” time to have a baby or buy a house. Whether it’s looking outside for help (via consultants, outsourced new business groups like RSW/US, or inbound marketing programs) or building a new business program on your own, just do it. I’ve seen too many situations where an agency lives (and eventually dies) because it’s top-heavy with one or two clients representing 70%-90% of their business. Don’t let this happen to you.

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The confidence marketers have about the economy and investment in their business spills over into their expectations relative to marketing and advertising spending. 51% of marketers believe they will either “somewhat” or “heavily” increase their spending in marketing/advertising in 2015.

MARKETERS

51%50%38%41%44%

LIKELY TO INVEST “SOMEWHAT” OR “HEAVILY” IN ADVERTISING/

MARKETING 2015 .................. 2014 .................. 2013 ................... 2012 ................... 2011 ...................

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This is good news for agencies – who also think their clients will increase spending in kind.

While these numbers for marketers and agencies are certainly encouraging, we have to remember the other 50% of marketers in this survey that see no changes, or some decrease in the spending behind their brand.

The caution here is that while we wouldn’t suggest you play it overly conservative (relative to your investments in your own marketing efforts or personnel), you need to keep a close eye on how your clients are operating out of the block as you roll through the first quarter, or into the first half of the year. If you see tendencies to hold back, you might not want to as aggressively invest in new computers, new furniture or that “extra” set of hands in account planning, as an example. What you don’t want to ignore and hold back on is the investment in marketing and selling of yourself.

AGENCIES

62%60%53%55%60%

LIKELY TO INVEST “SOMEWHAT” OR “HEAVILY” IN ADVERTISING/

MARKETING 2015 .................. 2014 .................. 2013 ................... 2012 ................... 2011 ...................

IMPLICATIONSPa

ge 1

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MARKETERS

If this all plays out as marketers lead us to believe, their increasing investments in advertising and marketing spending should mean more opportunities for agencies. But there’s another caution we have to mention, as there is a making of a trend underway, perhaps troubling, which could limit the number of agencies benefitting from this potential increase in spending by marketers.

Marketers are showing signs of a movement to consolidate agencies, reversing a trend we’ve seen over the past few years – where marketers were more likely to invest in separate agencies with individual specialties.

Marketers continue to use multiple agencies to support their business, but based on what we’ll see over the next few pages, the number of agencies a marketer uses is likely to decline. 62% of marketers use two or more agencies to support their business, a 13% decrease from our 2009 survey, when 75% of marketers said they used two or more agencies to support their business.

This move to consolidate means agencies need to show their existing clients they can operate across platforms – and they can think and act strategically on behalf of a client’s brand. This consolidation also means pressure for agencies to do more with less, given there will be more agencies vying for fewer pieces of business – so more of a reason to carefully invest in the human capital supporting yourbusiness and to make sure you have enough support behind your own marketing to protect from potential losses as a result of marketers’ efforts to consolidate.

IMPLICATIONS

of Marketers use 2 or more Agencies to support their business (versus 75% who stated such in 2009).

62%

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The movement to consolidate agency numbers on a roster is likely to continue as we move forward into the coming years. While not an overwhelming shift, there is a slight turn toward fewer agencies, versus bringing on more.

54% of marketers say they’re trending this way of late – and even more (63%) expect to drive further in this direction over the course of the next 1-2 years.

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MARKETERS

IMPLICATIONSWhile we’ve certainly seen these trends move both ways, I think this time it’s here to stay for a while. With increasing pressure on marketers to cut costs, pressure to get a better handle on their return on investments, and the on-going need to improve controls on brand messaging and integration across platforms, the move to work with fewer agencies that have a broader base of skills makes more sense for marketers operating under these conditions.

56%

63%

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MARKETERS

If you’re a specialty firm looking to expand your offerings (and you don’t want to make huge investments in your infrastructure now), consider exploring a strategic partnership with other firms. In last year’s survey, marketers indicated they are willing to work with agencies that have strong strategic partnerships with specialty firms. There is a willingness to have what one might call a “curator agency”…one that brings talents to the table that can benefit the marketer’s business, but that’s under one condition. These need to be meaningful relationships. I’ve seen agencies respond to RFIs on the RSW/AgencySearch side of our business that present other agencies as “partners” without any evidence of a past working relationship and/or little evidence of experience by the partner agency in the client’s category.

I wrote a post call “Good When They Are Great” that speaks to this and offers examples of where I’ve seen this work well and places where it has fallen down. Might be worth a read.

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IMPLICATIONS

Evidence of this trend’s impact is reflected in how marketers feel about digital-only firms – and what they believe the likelihood is they will survive long-term without offering more traditional services.

84% of marketers state it is somewhat/very important for digital-only firms to do more than just digital if they are going to remain relevant.

of Marketers say it is “Very” or “Somewhat” important for digital-only Agencies to diversify

84%

http://www.findingbetteragencies.com/2014/07/strategic-agency-partnerships/

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So now that we’ve talked about spending…let’s figure out what kind of environment agencies will face as they roll through 2015, specifically as it relates to the competitive landscape and new business spending.

Agencies indicate the landscape will be increasingly competitive. 79% of agencies in our survey state the business of advertising is much more competitive today than it was 3-4 years ago. This compares to only 68% of agencies stating the same thing back in 2013.

The implication here is a simple one: Get your face out there in front of as many prospects as you can for as long as you can…and eventually prospective clients will come knocking….that is, so long as it’s done in a smart, strategic and well-focused/positioned way. If it is, you are certain to create opportunities for yourself.

AGENCIES

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IMPLICATIONS

79% of Agenciesstate that the environment is much more competitive.This compares to only 68% stating such in 2013.

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Agencies on the whole feel pretty good about the number of new business opportunities that will surface in 2015. 63% of agencies feel the number of new business opportunities will increase next year…a level comparable to those we’ve seen over the past two years.

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AGENCIES

While the good feelings that agencies have are encouraging…we have to remember the findings that preceded this chart. Marketers, while enthusiastic and expecting to spend more (for the most part), are also trending toward using fewer agencies than in the past.

Without question, the business of advertising will be strong this year, but it won’t all come naturally and it doesn’t mean you can solely rely on your network and referrals or organic growth to carry the day.

Shrewdly invest in your people, proactively invest in technology, and most importantly, aggressively invest in marketing and sales. Because if you don’t (as we’ll see next) your competing agency down the street may beat you to the punch.

IMPLICATIONS

% OF AGENCIES THINKING NEW BIZ OPPS TO INCREASE IN THE

COMING YEAR2015 .......... 63%2014 .......... 69%2013 .......... 60%

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More agencies this year state they will be “somewhat” or “much more” aggressive in their approach to winning new business than in years past.

88% of agencies state this as compared to 86% last year and a low of 77% in 2011.

AGENCIES

How agencies execute “much more aggressively” will be critical to how well they succeed at driving more agency new business. Simply buying lists from a list supplier and mailing out a bunch of postcards 3-4 times a year isn’t the answer. We’ve had new clients come on board telling us they’ve “tried mailings and they don’t work.” They didn’t work because all they did was mail a bunch of postcards….end of story. No follow-up or support beyond that. Mailing and then doing nothing doesn’t work.

Same holds true for inbound marketing. Inbound is only as good as what you make of it. It’s not a secret potion that if purchased will magically work. You need to put effort into it…just like you need to put effort into any kind of outbound new business program

IMPLICATIONS

APPROACH TO NEW BUSINESS WILL BE “SOMEWHAT” OR

“MUCH MORE AGGRESSIVE”2015 88%2014 86%2013 82%2012 82%2011 77%

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Speaking of inbound….

Inbound marketing has been all the rage. The concept sounds great…but like anything, it takes a lot of work. We’ve been doing inbound marketing for years, well before inbound was a common household term. We’ve grown RSW/US by rates of 15%-20% since 2005 by using inbound marketing. We’ve been successful for four reasons: 1) We’ve stuck to it, consistently developing content, day in and day out, 2) Our content is all value-added. You’ll find very little on our blog or in our resources section that is about us. It’s all about you and how we can help your agency, 3) We activate our content. We not only push content out to most major social channels, but we also send out weekly releases with value-added posts and survey reports and webinars. It’s not a “build it and they will come approach” which many consultants out there want to lead you to believe works, and finally, 4) We don’t just use inbound. We complement our inbound efforts with outbound…good old fashioned calling, emailing, mailing and social outreach. We figure…what the heck…they’re there…might as well use them!

So as you’ll see below, while many agencies are using inbound (76%), few are finding it effective at helping them win new business. There is a ray of hope, as many are finding it effective today, (25% more than last year) when only 18% believed it was an effective practice. Agencies are obviously getting smarter and better using inbound to maximize their efforts.

AGENCIES

76% of Agencies areusing some form of inbound marketing

Only 25% of Agencies usingsome form of inbound marketing find it to be effective at helping their Agency in new business

http://www.agencynewbusiness.com/

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Reasons agencies provide for inbound not working include:

Marketers are not investing time in social media (so they’re not there when we post in social spaces)We don’t have good listsDifficult to keep staff engaged in program (so we never get it fully up and running)Didn’t manage the process as well as we should haveWe lacked content and focus

IMPLICATIONSDon’t build it and wait for them to come. Or start to build it, and then stop. Inbound works when you stick to it and you don’t rely on it alone, as your sole means of marketing your agency.

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The last topic area we’ll discuss today is one loved by many agencies: Search Consultants.

Surprisingly (to me at least), 66% of agencies surveyed said they’ve been involved in a search led by a search consultant and only 16% of marketers stated they’ve used a search consultant to help them find a new firm. This suggests too many marketers are letting search consultants bring a ridiculous number of agencies into their searches. These “cattle calls”, as they refer to them, should be outlawed!

AGENCIES

MARKETERS

66% of Agencies have beenin searches led by search consultants

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Only 16% of Marketers haveused a search consultant to manage search

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While the percentage of marketers rating their search consultant experience “Good” to “Excellent” was significantly higher than the percentage of agencies, the numbers aren’t all that encouraging. Only 47% of marketers rated their experience as positive. The primary reasons why marketers didn’t have an ideal experience working with traditional search consultants were cost (paying too much), their use of pre-determined lists (not building lists custom for their search), and not meeting expectations (marketers hoping for something better and not getting it).

Only 19% of agencies said they found their experience working with traditional search consultants positive (not surprising). Agency reasons for their negative experience were perceived bias, poor communication and feedback and specific requests by consultants to use their consultancy to get more opportunities (which is absolutely crazy – not to mention unethical!).

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Only 19% of Agencies ratedtheir experience positive

AGENCIESMARKETERS

If you’re involved in a search – with or without a search consultant, make sure you perform your due diligence. Find out how many are in the search. Is the incumbent involved? If they are, try and find out if the search is legitimate…are they really interested in changing agencies? If you are an outlier geographically, find out if they’re truly willing to go outside their own geography. Ask to speak with the client. Get your questions answered…you deserve it before you turn your agency upside down, rolling the dice to see if you win.

47% of Marketers rated theirexperience positive

IMPLICATIONS

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what is the MOST TROUBLING TREND you’re seeing among Marketers today?


PRICE COMPETITION IS FIERCE

IN-HOUSE MEDIA BUYING

LACK OF UNDERSTANDING DELIVERABLES FROM DIGITAL AND SOCIAL

UNWILLINGNESS TO BE BRAVE

HOW TO REACH YOUNGER AUDIENCES THROUGH MULTIPLE PLATFORMS AND NOISE

TOO MANY SAAS PROVIDERS CLOUDING THE MARKETING SPACE

WANTING DIGITAL EXCELLENCE WITHOUT BEING WILLING TO INVEST IN DIGITAL WORK

DETERMINING THE OPTIMAL INTEGRATION OF ALL VEHICLES, TRADITIONAL AND DIGITAL

SHORT TERM FIX VERSUS LONG TERM BRANDING AND CONSUMER RELATIONSHIP

LACK OF INPUT. LACK OF UNDERSTANDING. LACK OF PLANNING. LACK OF COMMITMENT TO DOING GREAT WORK.

INCREASED FOCUS ON WHATEVER THE LATEST TRENDS ARE IN THE NEWS

LACK OF UNDERSTANDING OF HOW TO STAY BRAND CONSISTENT ACROSS MULTIPLE CHANNELS

IN HOUSE AGENCIES BEING SET UP AT MAJOR CORPORATIONS

A BLIND BELIEF IN “ANYTHING NEW” IN THE HOPE THAT A DIFFERENT TACTIC WILL CHANGE THE OUTCOME OF THEIR MARKETING PROGRAM. IT STILL COMES DOWN TO SMART, WELL-RESEARCHED STRATEGIC MARKETING PLANNING AND EXECUTION, AND REACHING YOUR INTENDED AUDIENCES WHEN AND WHERE THEY CONSUME MEDIA.

DOING MORE WITH LESS. STAYING AHEAD OF THE TECHNOLOGY CURVE IN ALL ASPECTS OF MARKETING.

EXCESSIVELY SHORT-TERM THINKING

THE NEED TO SHOP AROUND FOR COST-SAVINGS AND THEREFORE PARCELING OUT PIECES OF CAMPAIGNS/MARKETING TO THE LOWEST BIDDER.

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(VERBATIM)ADDENDUM OPEN ENDED RESPONSES

AGENCIES...

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LACK OF A STRATEGIC APPROACH - TOO MUCH RELIANCE ON TACTICS RATHER THAN STRATEGY, TOO MUCH EMPHASIS ON IRRELEVANT METRICS, TOO MUCH BELIEF IN CONVENTIONAL WISDOM AND TOO MUCH OF A COMMODITIZATION OF CREATIVE SERVICES

BRANDS PULLING WORK IN HOUSE

KEEPING PACE - CLIENTS HIRE US TO BE AHEAD OF THE TRENDS AND WHILE YOU’RE BUSY DOING THE WORK, THERE’S NOT MUCH TIME LEFT TO GLEAM INTO YOUR CRYSTAL BALL

NOT TAKING CHANCES

HOW TO USE BIG DATA

INABILITY TO UNDERSTAND AND USE EFFECTIVE DIGITAL ADVERTISING

TRYING TO PROVE ROI BEFORE INVESTMENT BENCHMARKS SET

NOT UNDERSTANDING HOW TO USE DIFFERENT DIGITAL STRATEGIES

EXPECTING LEADS/SALES WITH ALL MARKETING DOLLARS. NOT HAVING A SEPARATE BUDGET FOR BRAND AWARENESS CAMPAIGNS.

SURPRISINGLY, WE STILL SEE MARKETERS WHO SEEM TO THINK THAT SEO AND ANALYTICS AREN’T CRUCIAL FOR THEM

QUICK TO DELIVER OFF-THE-SHELF SOLUTIONS, AND YET THEN IN THE SAME BREATH PRETENDING THEY’RE STRATEGIC

CAN’T MAKE ANY REAL MONEY IN DIGITAL AND SOCIAL MEDIA, TOO LABOR INTENSIVE

INABILITY TO MEASURE RESULTS DUE TO LEGACY SYSTEMS AND LACK OF INTEGRATED CRM

PIECEMEALING OUT PROJECT WORK

THE COMPULSIVE NEED TO ROI EVERY AD UNIT

A BELIEF THAT SOCIAL IS AN ECONOMICAL BRAND BUILDER REGARDLESS OF INDUSTRY.

NOT SPECIALIZING

THEY MOVE CONSTANTLY, NO LOYALTY

IMMEDIATE BUDGET CUTS MARKETING AND PR WHENEVER SALES ARE STAGNANT OR NOT MEETING EXPECTATIONS

THOROUGH UNDERSTANDING OF THE DIGITAL LANDSCAPE

LACK OF CLIENT TRAINING

MARKETING IS SO FRAGMENTED, IT IS HARD TO GAIN TRACTION FOR A CLIENT BECAUSE THERE IS ONLY A SMALL PIECE OF THE PIE THAT YOU CAN AFFECT

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GETTING CLIENTS TO UNDERSTAND MESSAGING AND CONTENT TO SECURE TRUST AND FOLLOWING

SMALLER BUDGETS

FOCUS ON BIGGER IDEAS THAT MOVE BUSINESS

BRINGING MOST OF THEIR MARKETING ACTIVITY IN HOUSE

CMO’S LEAVING.

ASKING AGENCIES TO TRAIN THEIR INTERNAL STAFF TO EXECUTE SOCIAL MEDIA

DESIRE FOR IMMEDIATE RETURN INSTEAD OF LONG TERM BRAND BUILDING

ADDING TO THE CLUTTER WITH BAD CONTENT.

UNQUALIFIED MARKETERS FOR THEIR POSITION.

INABILITY TO GIVE CLEAR DIRECTION. CHECK THAT, INABILITY TO GIVE DIRECTION. MORE AND MORE WE AS THE AGENCY ARE LEFT TO “”FIGURE IT OUT.”” THAT TREND IS REAL AND TROUBLING.

FRAMING UP DIGITAL AS A REPLACEMENT FOR TRADITIONAL/MASS ADVERTISING CHANNELS VS. A COMPLEMENT TO THEM

1) THAT THEY ARE NOT ENGAGING IN DATA ANALYSIS TO IMPROVE SALES AND 2) THEYWANT MEASUREMENT BUT ARE UNSURE WHAT OR HOW TO MEASURE IT

NOT INNOVATING AND INTRODUCING NEW/IMPROVED PRODUCTS

TOO SHORT SIGHTED

LACK OF FOCUS AND RESPONDING TO WHAT I CALL “”FIRE DRILLS.”” THEY GO OFF-PLAN AT A MOMENTS NOTICE BEFORE THEY LET THEIR STRATEGY PLAY OUT.

GOOD MARKETING AND ADVERTISING TAKES TIME TO BUILD MOMENTUM AGAINST THEIR TARGET AUDIENCES.

DISCOUNTING THE VALUE OF BIG IDEAS/CREATIVE THINKING.

DEVALUING CREATIVE, AND THE IMPACT THE RIGHT IDEA THAT SOLVES THE PROBLEM AND IGNITES THE OUTCOMES/ROI.”

ATTRIBUTION

THE SHIFT TO PROCUREMENT RUNNING A PROCESS TO ACQUIRE INTELLECTUAL CAPITAL. THERE CAN BE NO PRICE PARITY WHEN COMPARING BRAIN POWER.

PROCUREMENT IS DESIGNED TO GET THE BEST PRICE AND SERVICE ON COMMODITIZED PRODUCTS. BUILDING AND MANAGING MARKETING PROGRAMS IS A “”GET WHAT YOU PAY FOR”” PROPOSITION.

LOW PRICE WILL OPEN MEAN LOW VALUE.

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PURCHASING DEPTS

CLIENTS ARE SLOW TO IMPLEMENT PROGRAMS. I BELIEVE PRIMARILY DUE TO FRAGMENTATION OF MEDIA AND THE INCREASED NUMBER OF DIGITAL CHANNELS NOW THROWN INTO THE MIX WITH TRADITIONAL

KNOWLEDGE IS LOW ABOUT DIGITAL AND HOW TO USE IT. THIS EQUALS DECISION PARALYSIS.

WE AS AD AGENCY PROFESSIONALS HAVE ALWAYS SUSPECTED THAT CLIENTS USE THE AGENCY SEARCH/SELECTION PROCESS TO GET FREE IDEAS FOR THEIR BUSINESS CHALLENGES. FOR THE FIRST TIME EVER, WE HAVE HAD SEVERAL CLIENT PERSONNEL OPENLY TELL US THIS WAS THEIR STRATEGY IN CHOOSING TO DO AN AGENCY SEARCH.

YEARS UPON YEARS OF AD AGENCIES BEING WILLING TO GIVE AWAY FREE IDEAS TO CLIENTS IN PITCHES HAS FINALLY CAUGHT UP TO THE INDUSTRY

LESS OF A FOCUS ON STRATEGY AND STAYING THE COURSE - DISTRACTED BY WHAT EVERYONE ELSE IS DOING

SHORT TERM PLANNING, NO UNDERSTANDING OF THE POWER OF ADVERTISING AND BRANDING, TOO MUCH RELIANCE ON SOCIAL AND DIGITAL VERSUS BUILDING A BRAND AND USING THESE TOOLS TO REINFORCE THE BRAND DIRECTION. NO REAL INTEGRATION OF THE BRANDS MESSAGE.

THEY DO NOT UNDERSTAND HOW TO INCORPORATE NEW DIGITAL TECHNOLOGIES IN THEIR OVERALL MARKETING STRATEGY

THE SHEER MAGNITUDE OF DATA AND INFORMATION (ON THEIR TARGET, COMPETITORS, INDUSTRY, ETC) IS ACTUALLY MORE PARALYZING THAN HELPING

NATIVE ADVERTISING AND PSEUDO JOURNALISM

THE STRONGEST TALENT GRADUATING FROM SCHOOLS ARE NOT SELECTING A CAREER IN OUR BUSINESS

RELYING TOO MUCH ON SOCIAL

NOT CONNECTING THE DOTS BETWEEN MESSAGING, CONTENT, PAID MEDIA (INCLUDING SEO & SEM) AND THEIR WEBSITE. EACH MUST WORK TOGETHER.

MARKETERS THAT USE “BEST IN CLASS” AGENCIES OFTENTIMES DON’T HAVE THE TIME TO EFFECTIVELY TIE THE EFFORTS OF THESE AGENCIES INTO ONE UNIFIED EFFORT

HIRING “”BEST IN CLASS”” AGENCIES IS THE EAST PART, MANAGING THEM IS A WHOLE DIFFERENT SKILL SET

USING TOO MANY RESOURCES INSTEAD OF CONSOLIDATING WITH ONE AGENCY. WHILE THIS TREND SEEMS TO OFFER OPPORTUNITIES FOR AGENCIES TO SECURE PROJECTS FROM MORE CLIENTS, IT HURTS THE CLIENT BECAUSE, DESPITE THEIR BEST EFFORTS, THE PROGRAM BECAUSE DISORGANIZED AND LOST OPPORTUNITIES.

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A LACK OF TIME MAINLY DUE TO THE LACK IN CLIENT STAFFING AND INCREASE IN CHANNEL MANAGEMENT RESPONSIBILITIES

INCREASINGLY, EVERYTHING IS PROJECT WORK

LACK OF LOYALTY TO MARKETING PROVIDERS. CONTINUED PUSH FOR LOWER PRICES.

MARKETING MANAGERS ARE OFTEN JUNIOR PEOPLE WITH LITTLE BUSINESS OR LIFE EXPERIENCE AND THEY ARE AFRAID. AFRAID TO MAKE DECISIONS, AND AFRAID TO PUSH THE C-SUITE TO STEP OUTSIDE THEIR COMPARATIVE COMFORT ZONES TO DO THE RIGHT THINGS FOR THEIR BRANDS .

SHIFTING ASSIGNMENTS FROM RETAINER RELATIONSHIPS TO PROJECTS. HOLDING PITCHES FOR SHORT TERM PROJECTS. NEW SENIOR PERSON COMES IN, IMMEDIATELY LAUNCHES A REVIEW.

AD AGENCIES BELIEVING THEY CAN DO SOCIAL MEDIA BETTER THAN PUBLIC RELATIONS FIRMS

INERTIA AND DENIAL

DUE TO STAFFING RESOURCES AND TIME RESTRAINTS -- BEING MORE TACTICAL AND LESS STRATEGIC

RELYING ON SOCIAL MEDIA AS THE QUICK FIX TO MARKETING PROBLEMS

UNDER ATTENTION TO SOCIAL AND MOBILE. OVER RELIANCE ON DATA .

THE OVER EMPHASIS ON TECHNOLOGY VERSUS CREATIVE CONTENT/ENGAGEMENT

CHASING NEW AND SHINY OBJECTS

NATIVE ADVERTISING

CHOOSING AGENCIES ON PRICE ONLY OR FIRST

MARKETERS ARE RUNNING RFP’S FOR PROJECT WORK, MANY OF THEM NOT LARGE ENOUGH TO WARRANT THE EFFORT

PROCUREMENT TAKING A MUCH MORE PROMINENT ROLE

LACK OF COMPREHENSIVE APPROACH

TOO MUCH RELIANCE ON DATA; TOO MANY BUZZWORDS AND NO REAL THOUGHT; AND A BELIEF THAT MIGRATING TO DIGITAL AT THE EXPENSE OF TRADITIONAL MEDIA WILL DRIVE THEIR BUSINESS

MARKETERS CONTINUE TO RELY ON FLAWED MARKET RESEARCH TO MAKE AND JUSTIFY DECISIONS

SPEED....NO ONE WANTS TO INVEST IN THE LONG-TERM OR BRAND BUILDING. WE’RE LIVING IN A MICROWAVE SOCIETY.

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LACK OF UNDERSTANDING IN RELATION TO DIGITAL AND SOCIAL MEDIA - I HEAR WAY TOO MUCH THAT POSITIONS THESE TOOLS AS EITHER/OR IN RELATION TO TRADITIONAL MEDIA - NOT IN ADDITION TO...

INTERNAL RESOURCES PUSH AGENCIES OUT AND/OR TRY TO MAKE US VENDORS RATHER THAN STRATEGIC PARTNERS

THE LACK OF AN AOR

GETTING TOO CAUGHT UP IN THE TACTICS WITHOUT DEVELOPING AN OVERALL STRATEGY

TREND TO MULTIPLE AGENCY PARTNERS WITH A “VENDOR” MENTALITY

LACK OF UNDERSTAND OF MARKETING’S ROLE VS SALES

MORE AND MORE TACTICAL WORK, WE ARE BECOMING VENDORS AGAIN. NOT ENOUGH RESEARCH BUDGETS FROM SMALLER.

NATIVE ADVERTISING AND ROBOT JOURNALISM

DON’T APPRECIATE THE VALUE OF GREAT STRATEGY AND CREATIVE THINKING

LACK OF COMMUNICATION WITH AGENCIES RESPONDING TO RFP’S. ONCE YOU PARTICIPATE, THEY SEEM TO GO MONTHS AT TIMES WITHOUT LETTING YOU KNOW WHERE THINGS STAND.

MANY STILL DON’T DO A GOOD JOB MEASURING ROI

THE DISCREDIT OF TRADITIONAL (PRINT AND BROADCAST) MEDIA BY THE ADVERTISING COMMUNITY AND ADVERTISERS - WHEN THE NUMBERS AND ENGAGEMENT SUGGEST OTHERWISE

DIGITAL MARKETING WITHOUT STRATEGY OR MEASURING, CREATIVITY WITHOUT RESEARCH

KEY PROBLEM FOR MARKETERS: RAPID TURNOVER – OFTEN ONLY 18 MONTHS TENURE. WHY? LACK OF BUDGET AND SUPPORT LEADS TO FAILURE. WHY? UNREALISTIC EXPECTATIONS BY MANAGERS. WHY? MANAGERS DON’T REALLY UNDERSTAND MARKETING. WHY? LACK OF GOOD EDUCATIONAL TOOLS ESPECIALLY ABOUT TODAY’S RAPIDLY CHANGING APPROACHES. BOTTOM LINE: MARKETERS NEED SUPPORT AND TOOLS TO HELP THEM EDUCATE THEIR MANAGEMENT AND ACHIEVE AUTHORITY TO ACT BOLDLY AND GROW THEIR BRANDS.

NOT PROPERLY COMMITTING TO AND/OR FUNDING SOCIAL MEDIA ENDEAVORS

MARKETERS THAT AREN’T DEDICATING THE NECESSARY TIME TO CRITICAL STRATEGIC GROUNDWORK AND DIRECTION/LEADERSHIP

THE EXPECTATION THAT SOCIAL MEDIA IS CHEAP AND EASY. ANYONE CAN DO IT.

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NO LONG TERM PLANNING

LACK OF THEIR ABILITY TO TIE THEIR MARKETING SPEND TO BUSINESS OUTCOMES (LEADS, PIPELINE, REVENUE, NEW BUSINESS WINS, ETC.)

TAKING SOCIAL MEDIA IN HOUSE WITH THE BELIEF THAT THIS REPLACES ADVERTISING, FRAGMENTING ADVERTISING EFFORTS AMONG SPECIALIZED AGENCIES

THEY’RE SO UNDERSTAFFED AND TIME-CONSTRAINED TO THE POINT OF NOT BEING ABLE TO PROVIDE GOOD DIRECTION AND INPUT UP-FRONT. THE RESULT? CRITICAL INFORMATION ISN’T COMMUNICATED TO THE AGENCY UNTIL AFTER CONCEPTS, FIRST ROUNDS, ETC.

SMALLER BUDGETS BEING CHOPPED INTO MULTIPLE PIECES, LEAVING NOT ENOUGH MONEY IN ANY ONE DISCIPLINE TO DIFFERENCE-MAKING WORK

MORE CLIENTS DEVELOPING IN-HOUSE CREATIVE TEAMS

OMNI-CHANNEL ANALYSIS AND UNDERSTANDING HOW THE STRATEGIES IMPACT ONE ANOTHER SO RESOURCES CAN BE APPLIED PROPERLY

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what is the MOST TROUBLING TREND you’re seeing among Agencies today?


SOCIAL MEDIA

MOST OF THEM ARE CLUELESS

TRYING TO PLEASE EVERYONE WITH A SUITE OF SERVICES THAT ARE NOT SPECIALIZED

SILOS OF SPECIALIZATION...SO NOT ENOUGH STRATEGIC INTEGRATION ACROSS PLATFORMS

DECREASING ROI

STILL SLOW AND EXPENSIVE

INABILITY TO INNOVATE IN A MEANINGFUL WAY

IT IS GOOD THAT THEY ALL CAN DO EVERYTHING, BUT IT MAKES IT HARD TO DIFFERENTIATE AMONG THEM. THEY ALSO ARE SUPER PRICEY.

TOO MANY OF THEM - TOO MANY EXPERTS TOUTING SOCIAL MEDIA

TOO MUCH ONLINE ADVERTISING WITH LITTLE RETURNS

LACK OF RESOURCES

TURNOVER - SEEING LOTS OF TURNOVER IN CREATIVE AND MEDIA TEAMS

OVER EMPHASIS ON THE USE OF DATA

OVER SATURATION OF KEY MARKETS

MARKETING AGENCIES NEED TO BECOME FAMILIAR WITH INDUSTRY SPECIFIC MARKETING TECHNIQUES

LACK OF INNOVATION

THE DASH TO PROGRAMMATIC WITHOUT FULLY GRASPING THE RISKS. THE DIGITAL INDUSTRY AS A WHOLE HAS NOT FOUND A TRIED AND TRUE METHOD OF MANAGING FRAUD.

MISTAKES IN EXECUTION

DRUG USE

BEING ASKED “WHAT IS YOUR BIGGEST MARKETING HURDLE?” WHAT A LAZY WAY TO BEGIN A CONVERSATION. TELL ME YOUR STRENGTHS. YOUR ONE OR TWO STRENGTHS AND LET’S SEE IF THERE’S A FIT.

MORE AND MORE ONLINE BECAUSE IT’S COST EFFECTIVE

OVER-PROMISING AND UNDER-DELIVERING

CHASING THE NEXT SHINY OBJECT

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Copyright RSW//US, GP 20 15 © www.rswus.com 513 -559 -3111

LESS EMPHASIS ON MARKET RESEARCH INABILITY TO EFFECTIVELY PROVIDE POST ANALYSIS ON SOCIAL/DIGITAL PROGRAMS; ROI DIFFICULT TO DETERMINE DECLINE IN CUSTOMER SERVICE REACHING CORRECT AUDIENCES THROUGH THE CLUTTER CALCULATING ROI IN SOCIAL MEDIA/DIGITALLY THERE’S A LOT OF REPETITIVENESS IN CONNECTION/PIECES MOBILE/ONLINE BOMBARDMENT KILLING THE REVENUE/COST OPTIONS OF TRADITIONAL ADVERTISEMENTS (FACELESS CROWD)

PUTTING FAITH AND DOLLARS INTO NEW UNTESTED MEDIA AREAS - AND SPENDING TOO MUCH ON OUTSIDE 3RD PARTY COMPANIES HELPING THEM WITH THEIR SOCIAL MEDIA AND MARKETING TWITTER NOT UNDERSTANDING THE METRICS AND FAILURE TO USE DATA APPROPRIATELY LACK OF EXPERIENCE IN THE NEW DIGITAL WORLD SOMETIMES I FEEL THAT THEY WANT TO THROW OUT SOCIAL MEDIA IDEAS JUST BECAUSE THAT’S THE TREND. WOULD LIKE TO KNOW IT HAS VALIDITY. COMPLACENCY VIEWING SOCIAL MEDIA AS A DISCRETE FUNCTION OR STRATEGY RATHER THAN A TOOL THAT NEEDS TO BE A COMPONENT OF AN INTEGRATED STRATEGY THAT SUPPORTS OVERARCHING ORGANIZATIONAL GOALS INCREASE IN COSTS ARROGANCE A LOT OF PROMISES IN REGARD TO SOCIAL MEDIA, BUT IT’S A CHALLENGE TO TURN FB, TWITTER, PINTEREST REACH INTO DOLLARS LACK OF VALUE ADD. IN A DESKTOP PUBLISHING WORLD WHERE FREELANCE ARTISTS ARE CHEAP, RESEARCH CAN BE HOME BREWED, AND WRITERS ARE PLENTIFUL - WHAT ROLE DOES THE TRADITIONAL ADVERT AGENCY PROVIDE FOR SMALL TO MEDIUM SIZED COMPANIES - PARTICULARLY IN A B2B ENVIRONMENT. TOO MUCH EMPHASIS ON SOCIAL MEDIA WITHOUT CLEAR MEASUREMENT AND PROOF OF SUCCESS “ONE-STOP SHOPS” THAT BILL THEMSELVES AS SUCH BUT REALLY DON’T HAVE THOSE CAPABILITIES. ALSO, STAYING ON TOP OF/AHEAD OF TRENDS.

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TOO MUCH RELIANCE OF DIGITAL INTERACTIONS

EXECUTION TIMELINESS COST

ALTHOUGH MEASURING OUTCOMES IS IMPORTANT, MARKETERS ARE NOW MAKING USAGE DECISIONS ON THE ABILITY TO MEASURE RATHER THAN ON IT’S THE BEST WAY TO REACH AUDIENCES

CLINGING TO THE OLD SLOW AND EXPENSIVE BUSINESS MODEL. NOT EMBRACING SOCIAL MEDIA BECAUSE THEY DON’T KNOW HOW TO MONETIZE IT YET

TOO GENERAL, NOT SPECIFIC ON HOW TECHNOLOGY IS BE APPLIED

A FAILURE TO RECOGNIZE THE IMPORTANCE OF DATA IN THE DETERMINATION OF ROI AND IN SETTING MARKETING STRATEGY

BRAND JOURNALISM AND TOO MUCH EMPHASIS ON NON-TARGETED SOCIAL MEDIA

OVER-PROMISING AND UNDER-DELIVERING ON DIGITAL CAMPAIGNS

SELLING THE TECHNOLOGY AND NOT THE SOLUTION

BILL RATES

LACK OF TRUE EXPERTISE

LACK OF UNDERSTANDING A CLIENT’S BUSINESS DRIVERS

TRADESHOW CUT BACK

AGENCIES HAVE NOT BECOME TRUE EXPERTS IN DIGITAL--REQUIRING US (CMOS) TO EMPLOY SEPARATE SPECIALTY AGENCIES FOR THE DIGITAL SIDE OF OUR EFFORTS

LARGE AGENCIES ARE LOSING THEIR COMPETITIVE EDGE. SMALLER, SPECIALIZED AGENCIES ARE BETTER AT NICHE ACTIVITY AND PROVIDE GREATER VALUE

DIGITAL MEDIA TACTICS WITHOUT AN UNDERLYING STRATEGY

THE PACE OF CHANGE AND THE TECHNOLOGIES THAT ARE AT THE CENTER OF IT

NOT SURE

THEY ALL CLAIM TO DO DIGITAL BETTER THAN THE NEXT GUY

INABILITY TO COMPLETELY UNDERSTAND SOCIAL MEDIA AND NEW TECHNOLOGIES BEFORE ENTERING INTO CAMPAIGNS WITH THOSE CHANNELS

CLIENTS ARE LOSING FAITH IN THE EXPERTISE OF AGENCIES AND ARE LOOKING TO SPECIALISTS TO ACT AS CONSULTANTS WHICH RESULTS IN HIGHER COSTS IN WHAT SHOULD BE LOWER COST CHANNELS

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LACK OF GOOD IDEAS

MAKING GOOD DECISION ABOUT THE BEST WAY TO USE ADVERTISING DOLLARS IE: DIGITAL VS HARD COPY, INTERNET VS FACE TO FACE CAMPAIGNS ETC.

CUTE/FUNNY OVER-COMPELLING

COST

LACK OF FOCUS

FRAGMENTATION -- HUNDREDS, AND THOUSANDS OF TINY LITTLE AGENCIES. AS A CORPORATE MARKETER, I DON’T HAVE TIME TO SORT THROUGH THEM ALL.

A COMPLETE UNDERSTANDING OF OUR BUSINESS NEEDS

GROWING TOO FAST

LACK OF CREATIVE TALENT

OUT OF THE BOX APPROACH- NOT UNDERSTANDING THE CUSTOMER - NOT ONE SIZE FITS ALL

CLOSED LOOP MARKETING ISN’T REALLY IN PLACE ANYMORE

STILL OLD MODEL; NOT IN A POSITION TO LEAD CLIENTS (DON’T KNOW WHAT WORKS)

LACK OF SPECIALIZATION

NOT UNDERSTANDING THE TECHNOLOGY OF THEIR MARKETING DEMOGRAPHICS

SPECIALIZATION IN ONE ASPECT OF DIGITAL MARKET, FOR EXAMPLE. INTEGRATED CAMPAIGNS ACROSS ALL MEDIUMS ARE EVERYTHING.

THE PUSH FOR MEASURABLE SALES, AND AGENCIES TRYING TO OBLIGE, IS DIMINISHING BRAND BUILDING (MARKETING) IN FAVOR OF IMMEDIATE TRANSACTIONS (SALES)

POOR SERVICE, NOT UNDERSTANDING OUR CHALLENGES

FOCUS

HIGHER COST OF SERVICES

LACK OF DIRECTION

LACK OF UNDERSTANDING OF SOCIAL CHANGES

CONSUMER ONLY WILLING TO BUY PRODUCTS WHEN ON A DEAL

CREATIVITY AMONGST THE TIGHT PROMOTIONAL GUIDELINES

I DON’T HAVE SIGNIFICANT CONCERNS AT THIS TIME

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Date post:	27-Jul-2020
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