Published on March 13, 2014
SYNTHESIS BAROMETER OF THE COMMUNICATIONS INDUSTRY 2013 (France) English version
2 Why is Limelight-Consulting’s Barometer strategic for agencies ? 1. 2. 3. 4. Brings keys of understanding on the evolution of the communication industry Gives you very strategic and objectivied elements: what your customers and prospects say about you and will expect from you in the future. A way for you to reaffirm your reason for being on concrete, reliable, indisputable data. Collect the point of view of your coworkers. Considering that the quality of the relation between the customers and the agency is often equal to the quality of the relation between the collaborators and the company (concept of "a symetry of the attentions"). An analysis of the results (profits) with a neutral and objective look, without any bias.
3 How to use the Barometer for an agency Concerning prospects: Communicate elements of typical reinsurance: client satisfaction, recommendation, strengths Concerning agency’s clients: Identify the points of improvements and the opportunities to optimize the relation on a daily basis. Stand back, validate, in the medium term, elements linked to the agency’s strategy, seen in the prism of the stakes and the customer expectations Concerning the agency’s staff: Bring to the agency’s staff a global and objectivied vision of the companies’ stakes, the relationship with the customers and the agency’s position in this ecosystem (culture, information and training) Identify and adjust the daily gaps between the agency’s staff and the customers: communication, customers’ knowledge, agency’ offer
4 Qualitative phase 33 interviews with lead advertiser decision makers Methodology : face to face or telephone / duration : between 30 and 45 minutes. IP: June / July/August 2013.
5 Qualitative phase 1068 respondents including 330 decision makers Positions : 31% Decision makers : Heads of communication, marketing, General Managers 50% Upper Management: Operations Managers 19% Lower management: Project/product/group Managers Type of advertisers: 32% 100 top advertisers* Industry sectors** : 27% Sales and distribution 21% Consumer goods (food, clothing etc.) 12% Culture, Media, Leisure, Communications 12% Banks, Insurance 9% Household goods (automobile, etc) and Transport 7% Internet, Telecom, New Technologies 4% Tourism, hotels, and restaurants 5% Industry, Construction, Energy, Business services 3% Management, Public Services, Health services, Training 635 companies represented Methodology : online and telephone / Duration : 15 to 20 minutes / IP: June-July-August 2013. * Source : Gross advertising investments 2012, Kantar Média & Stratégies. ** Data adjusted for advertising media and non-media investments by sector in 2011, France Pub. Unless otherwise indicated, the % excludes DK
6 1 2 3 4 5 6 7 8 9 10 11 12 13 50% 46% 52% 36% 42% 42% 30% 31% 34% 27% 22% 20% 17% 1 2 3 4 5 6 7 8 9 10 11 12 13 53% 51% 50% 45% 45% 44% 36% 34% 31% 29% 24% 19% 18% Scope of intervention of respondents Brand content Brand Strategy (product) Digital marketing Corporate brand strategy Social networks Digital advertising Media buying Point of purchase comm. Mobile CRM / PRM Public Relations E-commerce Internal comm., HR Anadvertisermanages4.9issuesonaverage Top 100All Base : 1068 What issues do you manage?
7 What keeps advertisers up at night…
8 At the heart of it, the intangible: THE BRAND! What are the major risks to your brand/ company in the months or years to come? (open) « Aggressive competitors: those that have the means will be the survivors…» «Competitors who are more flexible, agile and responsive » Brand 32%Economy 23% Competition 18% Digital 14% Legislation 7% Innovation 5% « Lack of innovation that keeps the client surprised and interested» « The evolution of the legislative environment, fiscal and regulatory» « legislation that’s too restrictive» « Legislation on privacy and personal consumer data» « Become a real brand and center our communication strategy on the brand » « The depreciation of the brand » « My brand should stay in the driver’s seat » « Reputational risk » Base : 1068 «Failure to make the transition to digital » « We have E-commerce, the risk is that distribution does not adapt » « better digital integration in all divisions (marketing, communication, HR, etc...) » «That the crisis is longer and more severe than we imagined » « Effects of the economic crisis on purchasing power and budgets.» « decrease in purchasing power, prioritizing household spending »
9 Decision makers: manage the crisis, strengthen the brand, stay « on top » of digital « Not adapting to the shift in the paradigm that mandates digital » « making the transition to E-commerce » « Devaluation of the brand, drop in value of intangible assets, becoming dated and inability to capture new markets » Economy 28% Brand 27% Digital 16% « The current economic environment: the crisis !» « We are in a difficult economic climate there is a risk of not meeting revenue goals considering the context. » 330 decision makers 23% from top 100 advertisers What are the major risks to your brand/ company in the months or years to come? (open)
10 Budget shifts (according to 330 decision makers 23% from top 100 advertisers)
11 Focus on digital, brand, evaluation and reputation Going forward, in which areas are you going to allocate more/less of your budget? Social Media Marketing Mobile mkt Brand Content PR Mea. Adv. eff. ROI CRM Internal Comm e-commerceConsumer knowledge Referral SEM..mkt Adverting Comm Influence mkt e-reputation Web sites Operational Mkt Major Media buyingRetail marketing Media partnerships CSR comm. Crisis mngt/ comm. Event mktMedia buying: display 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 0% 5% 10% 15% 20% 25% 30% 35% Moreallocated Less allocated € « There are, in fact areas in which the advertisers have not entered at all. Agencies are evolving as the markets mature. The newer it is the more we need agencies. » Adv Barometer 2012 40+% of advertisers will allocate +budget
12 Budget increases by industry sectors Large consolidated Distribution Internet, Telecom Culture, Leisure Banks, insurance Social Marketing e-commerce Brand Content Social Marketing Mobile Brand Content +Valuation Social Marketing Search Adv. Comm Mobile Consumer information Evaluation Mobile Brand Content Social Marketing Internet, Telecom Distribution The sectors that are going to increase their budgets the +: By sector, TOP 3 areas of budget increases: Base : 330 Going forward, in which areas are you going to allocate more/les s of your budget?
13 Their vision of the abilities of agencies
14 For ‘hot’ topics, digital agencies are on the rise Which of the following types of agencies do you trust the most to accompany you on ...? 1er 2nd 1st Mobile marketing Digital 78% Customer Marketing 18% Media 17% Brand content Digital 32% Advertising 45% Corporate 21% Social media marketing Digital 81% Media 15% Public Relations 13% 3rd Base: 330 decision makers 23% from top 100 advertisers
15 On emerging issues, digital and customer marketing, contention Customer Marketing 64% CRM, Relationship Mkt, data Digital 33% e-commerce Digital 66% Customer Marketing 33% Consumer knowledge Customer Marketing 42% Media 34% Advertising 28% e-reputation Public relations 24% Digital 65% Trade Marketing Advertising 21% Customer Marketing 63% 1er 2nd 1st 3rd Advertising 8% Advertising 7% Customer Marketing 10% Corporate 10% Digital 11% Media 6% Base: 330 decision makers 23% from top 100 advertisers Which of the following types of agencies do you trust the most to accompany you on ...?
16 On subjects with strong added value, opinions are split. Digital adv. concepts Digital 84% Advertising 35% Advertising 74% Brand strategy Corporate 24% 1er 2nd 1st 3rd Customer Marketing 5% Media 14% Base : sorted by sector across 1068 respondents Which of the following types of agencies, who do you do most trust to accompany you on ...? Base: 330 decision makers 23% from top 100 advertisers
17 What stands out in agency relationships
18 By agency, still on the whole good… Advertising Customer marketing Digital Corporate PR Media Pleasure Solidarity Peaceof mind Pleasure Peaceof mind Solidarity Pleasure Solidarity Peaceof mind Peaceof mind Pleasure Solidarity Pleasure Solidarity Peaceof mind Solidarity Peaceof mind Pleasure 1 2 3 83% 81% 76% 84% 89% 83% positive overall impression What overall impression have you had of your agency over the last few months?
19 Agency presentations: improvement is a priority
20 25% 17% 15% 14%13% 10% 7% Creativity Strategy Operational FocusNothing, it's all good Everything Organisation Ligne B In general, clients are asking for + creativity and strategy All In terms of the quality of the presentations you see today what would you like to see improve above all else…. Operational No 2 priority for: Capital goods(16%) Industry/service (16%) Base : 1068
21 What are the agencies’ strengths & weaknesses?
22 Best: relationship management. Needs improvement: innovation and process. How would you rate your agency on a scale of 1 to 5 from bad to best (22 elements evaluated) ? Top 3 of 22 elements Good rapport with agency contact people Availability of leaders when necessary Commitment and reactivity of sales teams Surveys, contracted benchmarks, added value Agency investment in client growth Provision of tools /processes to maximize efficiency Forward thinking on the evolutions in marketing/comm & sharing with clients 1 2 3 1 2 3 1 2 3 22 21 20 22 21 20 22 21 20 Bottom 3 of the 22 elements All Decisionmakers Management
23 By type of agency… AD CM Digital CORP PR Media Good rapport with agency contact people Availability of leaders when necessary Commitment and reactivity of sales teams Understanding of advertiser’s industry /issues Able to adapt to company and rise above internal issues Contracted surveys, benchmarks, value added Commitment & investment in company growth and learning Provision of tools /processes to maximize efficiency Visibility on internal vs external service provision Strategic planning Outsourcing : ability to manage outside suppliers 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 1 2 3 22 21 20 22 21 20 22 21 20 22 21 20 22 21 20 22 21 20 AD CM Digital CORP PR Media How would you rate your agency on a scale of 1 to 5 from bad to best (22 elements evaluated) ? Top 3 of 22 elements Bottom 3 of the 22 elements
CHALLENGES FOR ADVERTISERS
1. The findings
26 « Advertisers say » "Agencies do not have the customer in mind" "They are responding to our questions, not anticipating" “All the elements are there but they are not working together: there are very good soloists but with no musical training and there is no orchestra anywhere to be seen." "Data: agencies do not know how to handle it" "I expect ideas from an agency, not the run-of-the-mill" "My frustration is the execution: mistakes on a daily basis. If the execution is not there, creativity and vision are forgotten." “It’s inexcusable for a big agency to make poor quality presentations." “When subjects are considered minor in the eyes of the agency, they dedicate fewer resources and less intelligence ... So things must be done and redone to the detriment of everyone concerned." "The deliverable is good, it’s the operational that’s sometimes complicated“
27 A « marcom » that takes charge An evolution in the business that puts the Marcom back in the center and clarifies 3 things: 1. Multi-channel = fluid workflow « The ride needs to be smooth: hot or cold prospect, for all clients and on all channels » « It is hard for an agency to master all channels and today we are on all channels » 2. Brand content « There is an issue in understanding and building the brand » 3. Data , CRM « We are going to become a ‘customer centric’ enterprise, data is going to put us back in the heart of the business »
28 « Utopia », or an puzzle to solve « On the one side we need fresh talent to challenge us, and on the other we need production workhorses as we are constantly producing » Intelligence « Understanding the brand and the ability to increase its value » « The agency needs to understand the course of business » « I would be part of the company audit to get as close to the subject as possible» « We want to be kept up to date, it can get very egocentric on the corporate side » « A strong advisory role, and daily support » « A creativity and highly cultivated agency » Operationnel « we must go forward together, it must be a tight partnership » « The right level of expertise and maturity must be assigned to each project » « Drive the operational » « The importance of the quality of the deliverables is inescapable »
29 2 poles creativity Operational « It is the only thing that cannot be internalized » « Asking for good creativity is a given» « The implementation can be internalized » « If the execution is not there, there is frustration and creativity and vision are forgotten»
30 2 corporate culture variables creativity Marketing Operational Business « If you understand the business, the rest will follow » « If you understand the brand, the rest will follow » « We need to have good deliverables before we need brain power»
31 Respond earlier rather than more (Avoid wasting energy, avoid being just average and all over the place)
32 When it’s right the advertiser is willing to pay « They have this ability to take on the subject from all angles with an intrinsic knowledge of what we are. They are consulting minded and that I will pay for without hesitation » « We are ready to pay if they are good and they have the solution » « Agile minds are priceless ! » « We pay them well for the good work we are getting in exchange »
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