Winner of the IAS Agency Credentials Award for 2020 is FoxP2. Boomtown and Conversation LAB follow with Leader Awards

The Assegai Integrated Marketing Awards, in conjunction with the IAS (Independent Agency Search and Selection) is proud to announce FoxP2 as the winner of the prestigious IAS Agency Credentials Award, with Boomtown and Conversation LAB following with Leader Awards.

Although this award was inaugurated in 2016, IAS recently revitalised their relationship with the Direct Marketing Association of South Africa (DMASA) - organisers of the Assegai Awards - in order to “relaunch” the IAS Credentials Award this year. The award ceremony took place on 26 November 2020 in Melrose, Johannesburg. Entries were received from creative, digital and media agencies. 

Judges included several leading South African marketers as well as international judge Cesar Vacchiano who is president and Global CEO of SCOPEN International.   Nikki Munsie, Business Director and Hlamazi Mabunda, Project Director of the IAS were also part of the judging panel.

According to Vacchiano “The judges were quite specific about the criteria and the winning entry certainly displayed evidence of an agency that was clear about their focus and positioning.  The FoxP2 credentials entry provided the judges with insight into the agency culture and the successes of the work that they are doing for their clients.  ROI was clearly evident.”

Johanna McDowell, Founder and CEO of the IAS comments: “We were excited to able to ramp up our partnership with DMASA by once again offering the Credentials Award. FoxP2 did very well to come out on top, and we were very happy to be able to award Leader Awards to both Boomtown and Conversation LAB all three of which submitted excellent credentials.  We would like to encourage more agencies to enter this award in the future because it will give them an opportunity to showcase their agency to the significant  number of leading marketers on the judging panel,” concludes McDowell.

SCOPEN launches TREND SCORE as marketers look to recover

On 23 October 2020 SCOPEN, together with the Independent Agency Search and Selection Company (IAS), conducted a virtual launch of TREND SCORE, a first for South Africa. A barometer the marketing industry over the past six months and a view to the next six, quantitative tracking has been carried out by SCOPEN for more than 10 years in Europe.

SCOPEN co-founder and global CEO César Vacchiano says: “We are very proud to launch the first TREND SCORE developed in South Africa. Participants include the key decision makers in marketing and the support of the Marketing Association of South Africa (MASA) in promoting the study among its members added much value to our research.”

Data for TREND SCORE 2020 was gathered between 15 September and 12 October 2020, so “what you see is the freshest possible look at the industry, with a firm focus on the impact of Covid-19”, he says.

Of the 36 participating companies, 61% are South African owned and 39% are multinationals. Categories covered are FMCG, services and durable consumption goods and a massive 61% of these have more than 1 000 employees.

Says Vacchiano: “The questionnaire was structured in two sections, the first being an analysis of the current situation; and the second, expectations on the evolution in the advertising activity for the next six months.

First, the red hot question: How much was your budget altered by due to the pandemic and its subsequent lockdown? “Our analysis shows that 58.1% of marketers decreased their advertising spend. Interestingly, 30.6% maintained a stable budget, and 5.6% increased their spend by up to 20% and 5,6% raised spend by 20% to 30%.

“The overall average of budget reduction was 21.3%. It’s a big number,” he says, “but the other markets surveyed came in with 20% to 30% budget cuts and it appears that South Africa’s lower rate of Covid-19 fatalities may have played a part in a slightly lower overall drop.”

The largest losses

The biggest loss in terms of disciplines was below the line (promotions, activation, experiential, events) spend (26.6%), with above the line following at 18.8%. Unsurprisingly, the sudden switch from work-from-office to work-from-home saw digital media buying drop by only 3.7% and digital media creative and content rise by 1.9%.

Johanna McDowell, SCOPEN Partner and Director for the UK and South Africa says: “Investment per media platform is not astonishing either, given the conditions placed on consumers with regard to gatherings and delivery of essential goods. The biggest loss was cinemas at a massive 81.8%, followed by magazines and newspapers at 65.8% and 64% respectively.”

Vacchiano notes that across global markets, cinema took the biggest hit, locally out of home (OOH) suffered a 45.1% cut and radio, 38.9%. McDowell highlighted the fact that South Africa’s hard lockdown saw very few cars on the road – a hotspot for radio listenership – and the spend cut reflects the massive drop in listenership.

“The increase in television viewing caused a slighter loss of budget spend,” she says, but asserts that the loss was due to marketers typically not spending where there won’t be a result.

“Consumers were in lockdown. Marketing had to be tailored to businesses that could supply goods or services and those were few and far between. We noted that television ads in the first few months of lockdown were largely about Covid-19, educational and emotional.”

McDowell says it was heartening to see the new, South African-made ads running in the first few months, and the switch back to regular ads has only come in the last two months. What is unusual, though, is that the only rise in spend TREND SCORE shows is television, in the durable goods sector at up to 50%.

Overall, in reviewing the impact of the pandemic on budget, business and sales, and scope of work of the agencies, digital showed stability while only durable goods – appliances, household items, cars - showed a rise in marketing spend. McDowell points out that the lockdown had vehicle manufacturers and sellers shut down completely. “Passenger car sales through April 2020 totalled just 105 units, down by 99.6% compared to April 2019 and light commercial vehicle (LCV) sales racked up a meagre 318 units, a 96.8% drop compared to April 2019.”

Asked whether Covid-19 has changed relationships between marketers and agencies, marketing leaders said a resounding 80.6% “yes”. The single most significant change? Remote working. “What’s interesting,” says Vacchiano, “is that marketers also found responses and processes quicker, as well as noting closer relationships, with agencies being more proactive and providing solid brand support.”

Changes in the way marketing organisations worked with agencies were also notable, with investment in technology and labour flexibility realising 75.8% and a restructure of the marketing department at 48.5%. Marketers who reduced agency fees numbered 42.4% and 12.1% have frozen agency fees.

The road ahead: Rocky or recovery?

Most advertisers expect to maintain stable investment in ATL and BTL in the first quarter of 2021. However, the average variation has more impact in ATL than in BTL, where ATL prediction comes down by -5.4%.

“Very good news for digital, though,” says Vacchiano. “Confidence in digital seems to encourage an increase in the investment in content and media, both of which show
a positive trend. BTL remains stable, but ATL again takes a small knock.”

So, when do marketers see their advertising investment improving? Overall average says 12.7 months, with almost 55% of the largest advertisers in South Africa believing the industry will start recovering some time in 2021, and 25.8% think the investment reactivation will be in January.

Three out of ten advertisers suggest investment will improve in 2022 and 9.7% think the industry will be back to a pre Covid-19 situation in 2023.

The factors that will affect a positive change in advertising investment sees 54.8% suggesting “it depends on the industry itself”, and 45.2% saying it “depends on consumers”. Factors external to the economy were noted by 22.6% and those who believe it depends on the global economy are just 16.1% of respondents.

Innovation is rated by 25.8% as a path to recovery, and just 3.2% suggested a vaccine for Covid-19 would be the gateway.

“All of these paths to recovery are dependent on what happens globally which, as we know, affects countries individually,” says Vacchiano. “The data is not good news – but it certainly could be worse. Europe is heading for winter and more lockdowns and infections, and emerging economies like Brazil and Mexico are also struggling. China looks set to be the only economy that will grow in 2020.”

Vacchiano says multinationals are under pressure to show growth but will be feeling the hardships of 2020. “Independents appear to be somewhat better off, especially where they were able to reduce fees for a few months and clients made payments promptly.”

SCOPEN aims to do the study again in six months, which will bring more clarity on the direction the markets are heading and how marketers foresee the second quarter of 2021.

The data is extremely interesting from senior leaders in the industry. I’m happy to hear that we aren’t as badly off as we could have been, but the threat of a second wave is top of mind too,” says McDowell. “TREND SCORE should provide much value as our industry leaders look to innovation and recovery.”

Right-housing: Strengthening your grip on the future of marketing

The evolution of the marketing structure was happening at a pace in line with customer demand and brand response, writes Johanna McDowell, CEO of the Independent Agency Search and Selection Company (IAS). Then came the revolution that is Covid-19, forcing marketers to deep-clean their ecosystem rapidly.

Part of the revolution involves “right-housing”, the process of reviewing your internal and external capabilities as well as those of the agencies you currently work with, to determine overlaps and efficiencies.

Most South African marketers are working with an average of four agencies, but in some cases the number rises to 10 and occasionally more as shown in the AGENCY SCOPE 2019 study conducted by SCOPEN. However, the cost of Covid is not only financial – it has left various departments understaffed and the result of that are pockets of inefficiencies.

To mitigate this, a rigorous and unemotional audit is required. Right-housing is designed to strengthen your efficacy in the market by creating a new ecosystem that focuses on future proofing your business, while simplifying structures to shed excess costs.

Marketers must take the lead in right-housing, starting with absolute clarity on which agency performs what tasks - even more important now with the added complexity of including Google and social media partners in the mix. It is, I believe, the kick-off point and is important enough to bring in specialists to assist. If you are right-housing to ensure longevity of your ecosystem, doing it right the first time is imperative.

The job to be done by right-housing

In working with marketers and agencies over the years and studying how an ecosystem needs to adapt to non-negotiable brand requirements, the IAS is mindful that a strong brand is one that influences every part of the consumer experience.

This requires communications, creative capital, agility and flexibility as well as the ability to collate data and turn it into action. Right-housing these functions means briefing the lead, PR, digital, BTL, ATL and all other agencies to ensure their specific disciplines add value and do not overlap with other providers.

To combat inefficiencies, the brief must be crystal clear. Once each task is housed in the right place for the job, the result must give the client more control over speed of delivery, quality of work and value for spend.

It’s a well known fact that the strongest brands are those where there is an obsessive focus on the customer, and all agency activity is pulling in the same direction. In an industry already very different from this time last year, we can’t afford to do a spring-clean and call it right-housing.

The old model of a structured marketing calendar is redundant in a world where change is as fast as the click of a mouse. The time taken from brief to completion is quicker, and the cost to client must be based in genuine return on investment in a tightened-belt market.

The ecosystem must change and it’s very likely that yours is also undergoing a significant shift. Get expert talent auditing assistance where necessary and – importantly - any time you hear, “but we’ve always done it that way”, run.

Johanna McDowell, CEO of the IAS, chats to Michael Avery from Classic FM, highlighting key findings from SCOPENS SA Trend Score

SCOPEN, with the Independent Agency Search and Selection Company (IAS), launched the results of the survey – virtually, of course – providing a barometer of the marketing industry over the past six months, and giving a view to the next six. This quantitative tracking has been carried out by SCOPEN for more than 10 years in Europe.

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Judges of the IAS Agency Credentials Award announced

A panel of respected judges will review all Credentials Award entries, which will consist of the agency’s written credentials document as well as the agency culture reel - within the various agency discipline types eg creative, digital, PR, media and design in South Africa.

The judging panel will be made up of six seasoned Marketers from leading companies in South Africa – already judging the Assegai Awards - along with international and local intermediaries in the marketer/agency space including:

Cesar Vacchiano is the president and CEO of SCOPEN International and is responsible for the international expansion of the group. He has developed projects in many countries and it now has offices in Spain, Portugal, UK, Brazil, Argentina, Chile, Colombia, Mexico, China, India, Singapore and South Africa.

SCOPEN provides knowledge and identifies demands and future trends for marketers, agencies and media owners. The company’ researches are focused on the communication, marketing and advertising changing environment. He is the only non-marketer member of the Directors Council in the Spanish Advertisers Association (AEA), Secretary of the Spanish Effectiveness Awards and member of the Jury in other Industry Awards and Festivals.

Lisa Colantuono is the co-president of AAR Partners, as well as the co-founder of Access Confidential. An authority in the industry, she has decades of experience as an agency search consultant whose unique perspective is highly valued. She counsels both marketers and communications agencies on their business and branding efforts.

In addition to her role as an agency search consultant, she has created a new business service centre for agencies by co-founding Access Confidential in 2005. She is also a publisher having recently published her book, @AARLisa: New Biz in 140 characters (or Less), written for the on-the-go new business exec that needs cut-to-the-chase insights to nail new business wins repeatedly.

Nikki Munsie is Business Director of the Independent Agency Search and Selection Company (IAS).  Nikki has more than 25 years of experience in the marketing and advertising industry with the last 13 years being in a consulting role where she  was involved in the development of Business and Brand Strategies with a strong emphasis on Cross Functional Action Learning for Clients.

Hlamazi Mabunda IAS Project Director for the Independent Agency Search and Selection Company (IAS).  Hlamazi is a AAA School of Advertising Integrated Marketing Communications graduate who works as a Project director with key responsibilities to include the streamlining of processes in order to make them more efficient.

Evaluating agency credentials: What turns clients’ heads

In a 2018 article in AdAge, MediaLink chairman and CEO Michael Kassan was quoted as saying: "Nobody has a crystal ball and nobody can say the agency of the future will be this way or that way. But what we can say is that there has to be a true willingness for the agency of the future to be more adaptive and reflective of clients' needs. Only the ones who can adapt will survive."

Today, some 18 months later, Johanna McDowell, CEO of the Independent Agency Search and Selection Company (IAS), concurs. “Even as we talk ‘new normal’ and ‘futureproofing’, we need to clearly define this sentiment so it becomes a business imperative,” she says.

“The way agencies are going to turn a client’s head in the current market is by understanding that their credentials are far more than creativity, no matter how amazing.”

The SCOPEN 2019 Market Trends Report shows that, even while creativity is important, it forms part the broader segment that includes credentials, case studies and quality of work. “This,” notes McDowell, “is what we encourage agencies to start a pitch with. And today, I’d add return on investment (ROI) as a vital up-front addition.

“This enables both the marketer and procurement to tick off what has become a crucial box before being swayed by creativity they can’t afford or that is questionable on the ROI front. We can’t put too fine a point on how important the latter is across all business sectors now.”

Industry reputation

McDowell highlights the value of adding some history about the agency and its standing in the industry and a client list. “Back this up with press coverage and case studies, as well as a brief analysis of outcomes, or value for a client’s spend.”

Company culture, BBBEE standing and procurement recommendations are also valuable, and often help clients determine whether they have a perfect fit or merely a creative agency.

 “At this juncture, specialisation is also important, as some clients look for ‘one shop fits all’ and others are happy to have more than one specialist agency in order to cover digital capabilities, strategic planning and a good understanding of the client’s market. These are all becoming must haves rather than nice to haves,” McDowell asserts.

The IAS encourages clients to evaluate credentials during a pitch process, as this session gives them a better view of how the agency will ultimately perform. McDowell notes here that the client who is seduced largely by creative work and isn’t actively looking for strategy and measurement tools is the client most likely to be disappointed soon into the relationship with an agency.

 To highlight the importance of overall credentials, the IAS decided to bring back the IAS Credentials Award, last held in 2016 in collaboration with the DMA Assegai Awards for integrated marketing excellence. Set for November 2020, will likely be virtual and the core objective will be to underscore the ROI of advertising. The event will give participants a great opportunity to present all credentials to a diverse panel of Marketing judges during the current unchartered journey.

“The ‘new normal’ has got many companies building the plane while flying it,” says McDowell, “so while we have the data to indicate trends and years of experience with what works, Michael Kassan is right – there is no crystal ball. What we do know for certain now is that the client seeking key credentials is more likely to get that magical ROI than the client wowed purely by creativity. Every ad Rand spent may not be pretty, but it has to count.”

Johanna McDowell on Radio Today's Risky Business Show

Johanna McDowell as she chats to Bryan Hattingh and Michelle Raymond from Risky Business, Radio Today, sharing thoughts around Covid trends, Marketing and Media trends and the newly relaunched IAS Agency Credentials Award.

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Agency credentials: So much more than swagger

Credentials. Bona fides. Street cred. No matter which way you look at it, what the mind conjures up is no single attribute. It’s the whole package – the attitude, the appearance, the swagger. So it is with agency credentials, writes Johanna McDowell, CEO of the Independent Agency Search and Selection Company (IAS).

It’s long been my conviction that creativity alone may win awards, but if it doesn’t win sales or new business for the client or brand, it’s merely gilding. Now, in an environment that has changed rapidly recently and is presenting us with new challenges, it has never been more important to lead any pitch with return on investment (ROI).

This means that clients need to feel confident that an agency understands their specific business requirements. Agencies do this by revealing their credentials, the foundation on which ROI sits.

As client-agency relationship experts, the IAS has always encouraged clients to make time to evaluate agency credentials during a pitch process. The agency that leads with its list of creative awards must follow swiftly with its street cred.

This includes some history and other information about the agency; a client list; its standing in the industry backed up by press coverage and case studies; and its value for money. Culture, BBBEE standing and procurement recommendations are also valuable, and will help the client to determine whether they have a perfect fit or just a creative agency. This is a crucial step for the client.

With the importance of overall credentials in mind at this point in our industry’s journey, the IAS took the decision to bring back the IAS Credentials Award, last held in 2016 in collaboration with the DMA Assegai Awards for integrated marketing excellence. In partnering again, both organisations hope to place ROI back at the forefront of campaigns.

According to David Dickens, CEO of The Direct Marketing Association of SA the Assegai Award entries grew by 30% in 2019, and will this year include entries from international agencies. He notes that this alliance with the IAS means agencies get their credentials out to marketers, and not just their creativity.

“It’s all about giving quality back to the client,” he says, adding that having marketers and peers reviewing agency’s work is what ensures value.” A diverse and robust panel of judges will include two international participants invited by the IAS, Cesar Vacchiano, CEO and President of SCOPEN International; and Lisa Colantuono, CEO of the International Associate Group AAR US, together with a number of renowned local marketers.

Set for November 2020, the format of the awards will be determined according to safety protocols, and may be held entirely virtually but – importantly - the objective will be real: “It’s about the ROI of advertising,” says Dickens, “knowing what you’re getting back for your buck.

“We’re excited to grow the Assegai’s with the IAS, as the IAS experience with credentials creates a win-win situation for all stakeholders which is key.”

Johanna McDowell and David Dickens share some thoughts around the awards.  Listen to the full discussion below.

Agency Credentials award relaunched by IAS at the prestigious Assegai Awards for 2020

The Assegai Integrated Marketing Awards in conjunction with the IAS introduced a new award category into the 2016 awards programme – the IAS Agency Credentials Award.  The award received some interest with entries in 2016 and the first winner announced that year, being Promise agency. 

The IAS is relaunching this award in conjunction with the Direct Marketing Association of South Africa (DMASA) who host the Assegai Awards. Once again, the aim of the award is to recognise an agency’s credentials set – written credentials document as well as the agency culture reel - within the various agency discipline types e.g. creative, digital, PR, media and design in South Africa.

According to Johanna McDowell, the CEO of IAS, “This award will only be judged by marketers and not other agencies or journalists.  We want to put agency credentials in front of as many marketers as we can in order to create opportunities for those agencies.”  In addition, the IAS will ensure that at least two international intermediaries as well as the IAS directors are part of the judging panel for this award. 

“We are excited to relaunch this award this year with the Assegai’s who had their best year ever in 2019 with a record number of entries across all categories,” says McDowell.   We are encouraging agencies to enter this award as it will give them an opportunity to showcase their agency to a large number of leading marketers on the judging panel.”  In addition, this year, entries will be encouraged from agencies in the rest of Africa and the Middle East.  “This coincides perfectly with the IAS’s expansion into other parts of Africa,” concludes McDowell. Closing date for entries is 28 August. The IAS Agency Credentials Award falls into Section F. All details can be found on the Assegai Awards website.

The Assegai Awards are hosted in association with the Direct Marketing Association of South Africa (DMASA). A DMASA Assegai Award is a mark of victory in Direct Marketing excellence.  Johanna McDowell will also be a judge at this year’s awards acknowledging entries that deliver exceptional results.

Since their inception, the Assegai Awards have striven to benchmark the South African Direct Marketing industry, to highlight best-in-class examples and encourage all players in the industry to work towards achieving greatness in their campaigns. The ultimate goal remains to keep raising the bar for the whole industry.

Comments David Dickens, CEO of the DMASA, “It was a natural fit that we should include a Credential Award into our categories of awards for agencies in the Assegai programme in 2016.  We are very pleased that the IAS is partnering with us to relaunch this important addition to our awards categories.” 

IAS partners with SCOPEN to produce local agency report

The Independent Agency Search & Selection Company (IAS) has partnered with Spanish based SCOPEN Africa to provide in-depth and comprehensive research amongst South African marketers into client-agency relationships.

The study, conducted by SCOPEN Africa, is a unique study that analyses the local marketing and advertising industry in a comprehensive and robust way.

Both the IAS and SCOPEN Africa have been working with marketers and agencies globally for more than 20 years. The first study was launched in Spain 35 years ago, has been conducted for the past decade in various countries around the world and has a record of 11 markets that have been analysed including China, India, Singapore, Spain, Portugal, UK, Brazil, Argentina, Chile, Colombia and Mexico.

More than 2,500 chief marketing officers (CMO) have been interviewed globally. The study is used by companies to understand market trends and by agencies to gather data on how they are perceived by clients.

Market trends, agency perception

César Vacchiano, CEO of SCOPEN Africa, says interviews are conducted with marketing heads of leading brands as well as directors and CMOs. The study analyses market trends and dynamics, client needs from agencies and how they compare with the rest of the world. In addition, agency perception and performance are analysed with prospective and current clients.

César Vacchiano, CEO of SCOPEN Africa
"I have known Johanna McDowell, the MD of the IAS, for more than nine years, and she has an understanding of marketing in South Africa. I believe that for a project of this magnitude, it is better to have a local partner and she is a specialist in her field. In addition, the data will be of benefit to both the IAS client and agency subscriber. In terms of value, our relationship with the IAS is bringing a local and international understanding."

In launching SCOPEN Africa in South Africa, the study provides in-depth information on agencies perceptions, taking into account their history, communication and new business activity and agencies performance as their current clients evaluate their service. The study is also able to compare the performance of agencies in different markets and even provide an international benchmark for the global networks.

Confidentiality for SCOPEN Africa is paramount. The information and aggregate responses from clients about their agencies is not divulged to competitor agencies, so their integrity remains intact.

"All the data is important and they trust us to run the project as we do in other countries. We have been received positively around the world because what we produce is unique to the industry and helps provide guidance to marketing and advertising firms around the world. The studies effect change and help businesses and economies grow," says Vacchiano.

McDowell adds, "The quality of the industry research that SCOPEN produces is unmatched in the world. To be able to bring this research process to South Africa for agencies is a highlight for IAS and is very much in line with our investment strategy of bringing international marketing brands and companies to South Africa, and indeed Africa. "

Agency Anxiety: Managing uncertainty, protocols and business strategy

As the Covid-19 period has expanded, so business uncertainty has increased. McDowell and Botha shared some thoughts around the importance of recreating certainty in the workplace in ways that are in your control.

Johanna McDowell, CEO of the IAS, chats to Michael Avery from Classic FM, about the AdForum Global Worldwide Summit

Listen to Johanna McDowell as she shares her thoughts on the AdForum Global Worldwide Summit

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Johanna McDowell on Radio Today's Risky Business Show

Johanna McDowell chats to Bryan Hattingh from Radio Today outlining the role of the IAS in the Marketing/Agency space. A recent area of need is the management of the marketing ecosystem, suppliers and agencies, for best results. The IAS has a wealth of experience and is able to advise in this area.

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SCOPEN Rating reveals South Africa's top media agencies

Glenda Neville from The Media Online interviews Johanna McDowell, CEO and founder of IAS and Cesar Vacchiano, CEO and President of SCOPEN global, giving insight into the new SOPEN Ratings.

Meeting a whole new world with firm fluidity

As we head slowly towards the re-opening of our economy after stringent lockdown regulations, Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner says our weeks of virtual relationship management have brought up some issues and opportunities that could make for fertile – or fallow – ground.

It’s said that when the tide goes out, we can see what’s left on your beach. The Covid-19 pandemic certainly took the tide out quickly and some beaches looked more appealing than others.

In the rush to ensure clients continued to be seen and felt by consumers, marketers and agencies all faced the “Big Ask”, and adapted rapidly. In no time at all, our industry was Zooming, Teaming and flip-charting to stay on track and offer more than we’ve ever had to.

As we settle into online communications as a way of life, innovative ways of managing relationships must be developed – and this will not be a “one size fits all” exercise. So, how do we best create a path for moving forward, behind masks or in cyberspace?

What to consider

·        What changes need to be made to continue a solid relationship in a new environment?

·        How do you make sure your teams are all on the same page, with both technology and resources to meet clients’ new requirements?

·        How quickly are you able to meet new demands in a landscape that is likely to be fairly volatile for some time?

·        Will the quality of input and feedback between marketers, agencies and clients be as consistent as it is important?

While relationship management has been the cornerstone of the IAS since its inception, we’ve found that the current circumstances have clients looking for a roadmap to navigate the ways in which our industry will need to innovate and create opportunities in the coming months and even years.

In my view, they key is to construct a fluid framework that enables all parties to be flexible while maintaining the strength of a solid ecosystem a client can rely on. My experience shows that the best way to be consistent within the inconsistencies we all have to deal with is to ensure you have a set of specific shared objectives; and an impartial observer keeping the entire eco-system on track.

With this in place, there’s no reason why our industry shouldn’t not only meet, but exceed, client expectations in a whole new world.

Planning to Exit Lockdown

THE IMPACTS FOR AGENCIES IN TIMES OF CHALLENGE

Tough times call for agile measures

 Marketers have been looking for agility for some time, writes Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner, and while some agencies have been able to meet the call, others have been somewhat slower. Then, along came Covid-19...

Even as the marketing sector responded to substantial changes in marketing technology (MarTech) and many managed to keep up with a steep learning curve, some agencies and even brands seemed to adopt a slower, wait-and-see approach.

Then came the outbreak of Covid-19 with its global lockdowns, and many an agency must have felt like that impala on the outer edges of the herd when the lion roared. 

Aside from the heartbreaking devastation of human life and the economies of so many countries, what the IAS is hearing in online conferences and Zoom seminars is the seeking of opportunities that always appear when risk is heightened.

The green shoots that have started to appear in our industry are encouraging, even while being as cautious as this pandemic demands. There are still pitches being made and procurements departments – traditionally the time-keepers of the pitch process – are allowing leeway for the way in which pitches must happen at a time when we can’t meet face-to-face.

Some marketers and their agencies are reporting being “busier than ever”; and we’re seeing a number of ads on television made locally and quickly - a boost for South African talent and the sector as a whole. While marketers remain loyal to their agencies – AGENCY SCOPE 2019-2020 shows relationship longevity with creative and media agencies growing closer to five years now - the IAS has also seen an uptake of ideas brought to marketers by micro-agencies in the digital space.

Far from being a threat, idea-generation by small operations or solo creatives could keep the wolf from the door for independents, and bring fresh, diverse ideas to marketers and their current agencies. In an economy likely not to be hiring full-time in the near future, paid arrangements with small businesses can provide a steady flow of creativity and remuneration.

Nothing will ever be the same...

No industry or business escaped the sudden turnabout Covid-19 effected across the board. We were collectively forced into acknowledging that so many number face-to-face meetings could indeed be e-mails; seminars didn’t require booking a venue; and brands, marketers and agencies rapidly found themselves forced out of the “but we’ve always done it this way” mindset.

 In fact, I’d go as far as to say that Covid-19 could be seen as is a step in human evolution. The shock of the pandemic is vast, but the lesson for business is that once consumers find an effective solution, they don’t usually go back to conventional methods. Online shopping was growing and now it’s normal. The delivery market that belonged to fast food chains now belongs to anyone with a license and a scooter.

The important takeaway for all industries is this: Take advantage of the experience of others and see who is meeting needs with the agility consumers will now expect. The perception will be, “If you could be agile during a pandemic, imagine the possibilities when all industries are running optimally”.

 So far, South Africa’s response to Covid-19 has been remarkable. I am hoping that our industry does not attempt to go back to “normal”, but continues on this path of agility and client-centricity. I hope, too, that the standards we have set now result in a quicker economic recovery.

Building your Prospect Pipeline Webinar

Although prospecting for new business might be the least likely priority on your agency agenda, the time is right to sharpen your new business skills and build your prospect data base in order to be attracting new clients post Covid-19 lockdown and beyond.

The road best travelled: How marketers choose service providers

There’s never been a question that real value has always been on a marketer’s radar when choosing service providers, writes Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner. But with Covid-19 adding a potential global recession to the mix, there’s also never been a more important time to offer value.

Since its inception, the IAS has placed tangible value at the core of its audits, moderating and matching of marketers with agencies. Depending on the marketer’s needs, each service offering carries a business value that must be taken into account as a monetary cost.

Now, more than ever, turning communications into solid value will be top of mind for marketers; and service providers who can’t satisfy this requirement will likely fly beneath the new radar set by the sudden shift of market conditions brought about by the global pandemic.

Marketer’s requirements highlighted by Agency Scope South Africa 2019/2020 as the most influential attributes used to choose creative and media agencies notes that credentials and quality of work is still top of the global list at 73.6%; with friends or colleague’s recommendations following at 67.8%. While articles in the press rose from 9% in 2017 to 20.9% now, last on the South African list of attributes of choice is agency rankings at just 16.6%.

Credibility as a key choice  

Even as the market has been divided into full-service and specialist agencies for some time now and the list of criteria used by marketers to choose agencies has grown, a vital factor highlighted in the SCOPEN face-to-face interviews with marketing executives is credibility.

One marketing decision maker noted: “Lots of leaders have learned hard lessons from being burned by previous experience and this can dramatically affect who they want to work with. What they don’t want are big promises about big fixes, and grand plans with big technology instead of more focus on coaching and learning; and agile, adaptive partnerships.”

When approached to undertake mediation between agencies and marketers, the IAS has often found credibility – and therefore loss of trust - to be a wheel that isn’t turning efficiently. Why would a long-term relationship between parties suddenly turn sour? Given that our stats show a growth in relationship longevity from 4.5 years to 4.7 years, the turn isn’t so sudden.

Somewhere in that time, changes have occurred, including rapidly-growing digital marketing, and many parties have grown together into MarTech. However, the speed of MarTech and the ability of both client and agency to adapt daily (and sometimes hourly) to consumer demands often gives rise to questions about credibility.

Marketers may feel their agencies are not being pro-active and agencies may counter that marketers are taking too long to make decisions to be effective. Both may be right.

The bottom line is that marketers want today what they have always wanted – the best business value they can get from suppliers who understand the clients’ market; the sector as it changes; and the importance of credibility on a path that is going to test even the best in every sector.

Their choices will be made from service providers ready to take off from a brand new runway whenever required and still deliver real business value.

Decluttering the ecosystem: A smaller, tastier menu for marketers

With knowledge based in long-term needs-analysis studies in large corporates and insights provided by Scopen’s AGENCY SCOPE, CEO of the Independent Agency Search & Selection Company and SCOPEN partner Johanna McDowell has a healthy idea about what marketers want from their agency ecosystems.

Restaurateurs have long known the value of fewer choices on a menu. In his 1970 book Future Shock, author and businessman Alvin Toffler coined the phrase “overchoice”, or choice overload of the cognitive process, in which people have a difficult time making a decision when faced with many options.

With new technology and digital platforms on the rise, the marketer’s menu is growing, giving rise to what American psychologist Professor Barry Schwartz, calls “choice paralysis”.

This is costly and time consuming in an industry that requires agility. Choosing between speciality agencies and multi-disciplinary ones; allocating budget for the various platforms available; and manoeuvring between the overlap of services on offer stresses both individuals and budgets.

Simplicity saves time, money

Simplicity, it seems, should be on the menu right now. In asking 207 marketing decision makers across the country what marketers want now, AGENCY SCOPE South Africa 2019/20 noted that 52.9% of interviewees highlighted a preference for working with an integrated agency. 

By definition, the integrated agency is one the offers advertising, digital, BTL, media, events, PR and “other disciplines”; and 69.9% of South African marketers have a lead agency that coordinates all communications services – almost on a par with the UK at 74%, but far from the global average of 48.8%.

However, specialist agencies – particularly in the digital arena – are still important options for marketers, especially when they offer a combination of marketing technology (martech) solutions. Because martech is a relatively new sector and changing rapidly, it can be overwhelming for marketers, who need the knowledge and guidance of specialists to implement the right options at the right time.

This suggests to me again that marketers are looking for simple efficiency – that is, being able to trust their lead agency to take control of what has become a cluttered ecosystem.

Creativity versus awards won by agency

Trust is a key ingredient sought by marketers from agencies that provide creativity, knowledge strategy and professionalism. Marketers interviewed for AGENCY SCOPE highlighted creativity as the most vital ingredient, and the differentiator from competitors that enabled them to reach more consumers.

Strategic planning abilities came second on their wish list, followed by the agency’s team. Interestingly, while creativity is the cherry on top, awards won by the agency features last on the marketer’s agenda.

To be an agency of choice, marketers also want all of this and a fair dose of agility. This doesn’t just mean speed, but innovation and the ability to be flexible when required. As we have become used to the immediacy of digital and online transactions and opportunities, the need for rapid response is no longer a “nice to have”, but a business imperative.

With big data and analytics shedding light on what may once have been hidden returns on investment, marketers are looking for agencies that can provide the value-in-numbers that their clients want to see.

So, are you ready to dispense of the “tasty” choices and produce a healthier menu that delivers, but doesn’t overwhelm? It looks to me like those who offer the solid options rather than the plentiful ones will ultimately win.