The 3P’s of the Future Branding Building Value Chain

Pipa Unsworth @peepa @verveiq

Faced with clients moving key services in-house, or working directly with media and marketing

technology platforms, what can agencies do to remain relevant and deliver value?

SOMEONE CHANGED THE RULES“The rules have been modified so much that we are actually playing a different game now. The very nature of the customer, the market and therefore of the organisation has transformed while a lot of companies are still playing by the old rules.”

Peter Hinssen @Nexxworks

Source: http://nexxworks.com/blog/what-happens-when-the-rules-of-the-market-change

CONTENT TRENDS

Soure: http://www.adweek.com/news/advertising-branding/10-trends-shaping-future-branded-content-163591

Real time marketing is the new normal

Content will be more participation based

Personalised content a scale

Embracing the new social influencers

Sign (i.e. data) driven content distribution

Content that drives conversion - not just acquisition

Content technology bringing together planning and buying

Productising data and insights

THE MOVE INHOUSE

Source: https://hbr.org/2015/07/6-reasons-marketing-is-moving-in-house

#1 Agencies aren’t keeping pace

#2 Agencies are stuck on advertising

#3 Continuity has become more important than campaigns

#4 Companies no longer want to outsource customer relationships

#5 Companies want to own the data

#6 Agency talent is moving in-house (or joining startups)

NEW TECHNOLOGY IS ALLOWING BRANDS TO BYPASS AGENCIES

Source: http://www.adweek.com/news/technology/new-technology-allows-brands-bypass-agencies-158182

“If it’s programmatic inventory, it’s really easy to do. You can train your receptionist to do it.”

Adtech company CEO

“Programmatic buying is ridiculously complex. We will beat you every time at the auction.”

Agency media executive

V.S.

MORE COMPETITION FROM MEDIA FIRMS“Media companies are increasing revenues by building creative studios that allow them to give away creativity to brands so that they will spend more money on a media buy with them. “

Source: http://digiday.com/agencies/6-trends-will-shape-future-agencies

“AGENCIES ARE COCKROACHES, NOT DINOSAURS.”

Source: http://adage.com/article/agencies/future-ad-agencies-uber-model/299816/

Brian Wieser, Senior Analyst, Pivotal

https://econsultancy.com/blog/65050-how-is-the-agency-model-changing-part-one/ Source: https://econsultancy.com/blog/65050-how-is-the-agency-model-changing-part-one/

Source: http://adage.com/article/agencies/future-ad-agencies-uber-model/299816/

Source: http://adage.com/article/agencies/future-ad-agencies-uber-model/299816/

The 3P’s of the future brand building value chain

THE 3P’S

Strategic alliances are critically important in brand building value chain - how do you

build the right partnerships?

Partnerships People Proprietary Tech

The war for talent is fierce - how do you find and keep the

right people?

Investing in tech can differentiate and provide a clear

competitive advantage - how do you avoid the

pitfalls?

PARTNERSHIPSStrategic alliances are critically important in brand building value chain

How do you build the right partnerships?

#2

PARTNERSHIPS§ Partnership opportunities are everywhere: Content, Media,

Technology, Services. For example:§ Unilever and Vice to create content for its Broadly women’s channel§ Pinterest and Vice join forces to create content for Bank of America§ WPP, Daily Mail & Snapchat created Truffle Pig content agency

§ Brand-Agency JVs

§ Re-bundling of creative and media

Focus on the value to the customer

PEOPLEThe war for talent is fierce.

How do you find and keep the right people?

#2#

PEOPLE§ 79% of agencies believe talent shortage is one of their biggest challenges

§ Agencies are not just competing for talent with other agencies – they are competing with consultancies, startups, tech firms

§ Rising numbers of people freelancing and contracting

Source: eConsultancy & Adobe “The Future of Agencies” Report

Operating model that supports a ‘fluid’ workforce

Reinvigorate reasons to believe and belong

PROPRIETARY TECHInvesting in tech can differentiate and provide a clear competitive advantage

How do you avoid the pitfalls?

#23

PROPRIETARY TECHNOLOGY§ 62% of agencies say they are increasing their investment in proprietary tech

§ 34% have an innovation lab and a further 29% are planning one

Source: eConsultancy & Adobe “The Future of Agencies” Infopgrahic

Clear plan for monetising your investment

Embed it into your core agency proposition

Build, buy or partner?

SUMMARY§ Several forces are disrupting the traditional brand building value chain

§ CMOs are looking for new ways to create content and be agile

§ Agencies are evolving: § Creating new services and operating models § Making strategic acquisitions and alliances§ Embracing new hiring models to secure talent§ Building their own technologies to deliver new services and differentiate

themselves

§ Agencies must carefully choose how and where they add value, be more collaborative with clients and other key players in the new brand building value chain.

@peepa @verveiq

https://uk.linkedin.com/in/pipaunsworth

pipa@verveiq.com