When the pitch is a small part of the whole

Long known as pitch consultants with expertise valued by agencies and marketers, remote work has brought to light the broad range of services intermediaries bring to the table, and it's a feast for clients.

Never before has value versus cost been more important to marketers and agencies. The global pandemic forced all industry sectors to assess the services they invest in and determine how much of their spend would provide adequate return in investment during the uncertainty.

Interestingly, a trend we’ve seen in the sector is that intermediaries are being called on from prior to pitch and through onboarding, right up to ongoing guidance. While this holistic approach has always been on offer, it appears that operating remotely due to Covid-19 and its restrictions has made agencies and marketers look to intermediaries to confirm their requirements and operational choices.

A deeper look into the timing of this phenomenon shows that the role of the intermediary has blossomed with the uptake of video conferencing and few face-to-face meetings. Because the “middle men” have built their businesses and reputation on their thorough knowledge of all parties involved in a pitch, few are better placed to give the guidance required to all parties.

As the go-between with a vested interest in every relationship succeeding, we are seeing a need for intermediaries to be on call for at least the first 60 days of a relationship. Because of their prior understanding of what each party does and how best to guide them, clients have shown a greater trust in the online relationship with their chosen experts.

Trust in the leap to online

While many businesses took time to build up trust in online communications as the pandemic hit hard, intermediaries were in the privileged position of already having an intimate knowledge of those they were working with. They felt comfortable enough to pick up the phone at any time or Zoom in to a discussion, even on the difficult issues like contract negations and casting their nets wider to attract companies not previously used.

It is this trust that we have seen grow through the difficulties Covid brought. In fact, one project that went surprisingly well for the IAS was a global pitch from a London-based firm looking to South Africa to meet its requirements in 17 countries in Africa.

Owing to previous dealing with the agencies, those put forward were tried, tested and known to us. There was not a question that couldn’t be answered for the client, when they needed the answer.

On reflection, I believe the trust that we are sharing across our sectors now is not new, but it is more profound. Clients who have always known they could trust the process didn’t realise just how much they could rely on it until they had no other choice.

Years of meeting, working with and understanding the people and processes in our industry has paid off in a closer, more empathic relationships and a renewed trust we may not have had without technology making things more personal.

And if that isn’t as unpredictable as it is serendipitous, I don’t know what is.

Pitch remains the most favoured way of selecting an agency

The 4th edition of Scopen's Agency Scope UK 2021/22 has been released and highlights key trends in the UK's communication, marketing, procurement and advertising industry, and provides in depth positioning and competitive information to both creative and media agencies.

This study takes place biennially in ten other markets around the world (Argentina, Brazil, Chile, China, Colombia, India, Mexico, Portugal, South Africa and Spain), which enables the inclusion of global benchmarks in some key aspects. This UK edition was developed by Scopen in partnership with Warc and with participation of ISBA members.

The universe of analysis comprises the highest-level decision-makers in marketing, communications, advertising, and procurement, from the largest and most important companies in the UK. Professionals interviewed in each company had to be involved in and interact in the decision-making process for selecting and approving their agencies’ work on an ongoing basis. Over 300 client-agency relationships and 141 marketing professionals were analysed.

Each year as a result of the studies taking place in the various markets, SCOPEN gathers more than 3,000 opinions globally from interviews with CMOs.

Pitch remains the most frequently used method to select an agency in the UK

To create a long list of agencies, the most mentioned sources of information are the quality of the agency work/cases/credentials followed by experience/personal knowledge and friends or colleagues recommendations. When it comes to building a short list of creative agencies, the most mentioned aspects are creativity and innovation, agency's previous experience and expertise, and agency reputation/image/prestige.

Pitching is the most frequently used method to select an agency, used by 92.6% of marketing professionals in the UK. Also, popular are workshops (67.6%), whilst consultants (28.7%), by credentials (15.7%), direct appointment (6.5%) and trial assignment’ (0.9%) are used less frequently to appoint a new agency.

Johanna McDowell, Scopen Africa Partner, comments, “We saw the same trend in the South Africa study in 2019, and we are anticipating little change when we view the results of the Agency Scope South Africa 2021 study, currently in the field.”

Involvement of procurement increases

66.7% of marketing professionals in the UK stated that their procurement department is involved in the negotiation processes. The involvement of procurement has increased in the last few years worldwide, and China shows the highest percentage (77.1%) among all countries where the study is conducted.

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UK Marketers prefer specialist agencies to solve their needs in different areas

The Power of Knowing: First insights into AGENCY SCOPE UK 2021/20222

UK marketers prefer specialist agencies to solve their needs in different areas

The 4th edition of Scopen's Agency Scope UK 2021/22 has been released. A research study that highlights key trends in the UK's communication, marketing, procurement and advertising industry, and provides in depth positioning and competitive information to both creative and media agencies.

This study takes place biennially in ten other markets around the world (Argentina, Brazil, Chile, China, Colombia, India, Mexico, Portugal, South Africa and Spain), which enables the inclusion of global benchmarks in some key aspects. This UK edition was developed by Scopen in partnership with WARC and with participation of ISBA members.

The universe of analysis is comprised of the highest-level decision-makers in marketing, communications, advertising, and procurement, from the largest and most important companies in the UK. Professionals interviewed in each company had to be involved in and interact in the decision-making process for selecting and approving their agencies’ work on an on-going basis. Over 300 client-agency relationships and 141 marketing professionals were analysed.

Each year as a result of the studies taking place in the various markets, SCOPEN gathers more than 3,000 opinions globally from interviews with CMOs.

Higher turnover and marketing budgets than in 2019

The average company turnover declared by respondents is £10.9 billion (B), while the average company marketing budget declared is £41.7 million (M). In both indicators, companies have declared higher figures than in the previous edition. Marketing and communications budgets represent 0.4% of the total of companies' average turnover.

Digital investment increases more than 18% since 2015

37.5% of marketing’s budget is invested in above-the-line actions, 21.8% in below-the-line actions and 40.7% in Digital (it has increased 18.5 percentage points since 2015). Digital is, for the first time in this study, the discipline that has received the largest investment of the marketing & communications’ budget. Digital budgets in the UK are higher when compared to most of the markets in which AGENCY SCOPE is conducted (40.7% vs. 35.7% average investment from the ten market-benchmark).

UK marketers prefer specialisation vs. integration

58.8% of marketers mentioned that they work with different agencies, specialists in different disciplines. 60.2% of respondents declared that, in the future, they would prefer to work with specialist agencies that would solve their needs in different territories, while the other 39.8% stated they would prefer to work with an integrated agency to solve all their marketing and communication needs under one roof.

UK is above the global benchmark in terms of the desire to work with specialist agencies in the future and, globally, we notice two different trends: one going towards the search for integrated agencies (Argentina, Brazil, Chile, Portugal and South Africa) and another going towards specialists (Colombia, Mexico, Spain, UK, China and India).

Johanna McDowell, partner for Scopen in the UK and South Africa and CEO of the IAS (Independent Agency Search & Selection company), says “These results are a good indication of trends that are happening globally in the advertising sector and it will be interesting to see how these compare with the results of the Agency Scope study in South Africa in 2021 where results are due in October this year.”

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AdForum Global Summit Feedback

The Ad Forum Global Summit – the third virtual one that has been held – took place over six days with morning and afternoon sessions timed so that colleagues in the US, Europe, Africa and Asia could join in with minimal difficulty from a time perspective.   The Summits have been highly effective in keeping us connected as global pitch consultants and also the agencies who have participated.  It has been very interesting to see which agencies have really thrived during the pandemic and the steps that they have taken as businesses in order to grow and prosper.

This Summit was more about that business aspect as well as the typical reviews and case studies of client work.  So this report looks at those key highlights from global agency leaders. Of the 10 agencies and agency groups we met per the agenda above, here are some key findings:

WPP – Mark Read

Just like 12 months ago Mark Read was at the start of this Summit – though this time he was live and could report back on what has happened within WPP in the past 12 months.  Some key points:

·        The value of saying “No” to unreasonable requests so as not to be overwhelmed

·        A predicted downturn in profits of 30% for 2020 turned out not to be nearly as bad

·        2021 – has bounced back well

·        Mark has been most surprised by how well they have managed

·        WPP has grown

·        They have saved on costs – travel, rentals, operating costs

·        They won more new business in 2020 – up by 40% on the previous year

·        And they learned more about each other in the company – the culture of WPP has been strengthened through the pandemic

And my favourite of his comments:  “By the time we get back to normal, we will have forgotten what normal is”. 

Looking forward:

·        Mark said that he has seen more of his clients than before as they are more accessible – he wants to continue with this

·        Clients are now questioning if they have the right agency partners in place in order to grow

·        WPP predicts strong growth for 2021 and 2022

·        VMLY&R has been the best performing agency in the group

·        Biggest account wins in the past two years have been integrated and using a few of the agencies in the group

·        WPP are keen to get their people back into the offices – but not necessarily five days a week

·        Would like to see much clearer objectives in pitch processes

·        Is committed to achieving the goal of making WPP the most creative company on earth – along with creative partner Rob Reilly

Altogether an excellent session to boost the Summit start.

OGILVY – Andy Main Global CEO and Devika Bulchandani CEO of North America

Andy – as the recently appointed global CEO commented that his first impressions last year were that Ogilvy had “more P/L’s than people” with a structure that was too complex.     

They have restructured the agency group into five businesses:

·        Growth and innovation

·        Public relations

·        Advertising – ABC – advertising, brand and content

·        Health

·        Experience

Agency leaders within the group are now able to focus on these businesses while the finance team in the background focus on the nitty gritty of financial management.  New business gains have been significant in the past 12 months and they have also noticed that 59% of their clients in the group work with two or more of the businesses of the five identified above.  The “intersection” of these is where the magic is happening.

·        Ogilvy spoke of Intersection rather than Integration. 

·        Intersection brings impact – whereas  “integration is the enemy of creativity “    

·        Intersection frees up other thinking

We were to hear the word “intersection” several times throughout the Summit. In fact, it became the word of the Summit this year.

Several excellent case studies demonstrating the most recent work from the various businesses were shown to us in order to prove the results of this restructuring for the various client brands.  We concluded that the session with Ogilvy was probably the best in more than 13 years of attending this Summit.

MSQ Group

This was interesting as it is a new holding company with nine specialist agencies, in digital and tech mainly, and their model is to build a multi-discipline system around a client’s needs.  They have 13 global offices, 855 staff and 250 clients with a revenue of 100 million pounds Sterling in 2020.   40% of that revenue is derived from B2B marketing making them quite unusual among the larger groups. Some great work from Tetrapak, Chanel and Lifebuoy illustrated their approach and success.  They don’t have representation yet in Africa – but no doubt this will be part of their growth.

Accenture Interactive   

Jon Wilkins and his leadership team built on what they shared with us at the NYC summit of 12 months ago.  Since then, they shared with us what has accelerated the growth of this ever burgeoning global agency (not a holding company) which celebrates its 12th anniversary this year. 

They observe that – for the first time ever - consumers are buying brands based on experience rather than just quality and price.  They believe that the formula for growth and relevance is to become a Business of Experience.  BX.

They revealed that Jaguar Land Rover and their internal agency Spark 44 are now part of Accenture Interactive globally – in South Africa too – and that personalised customer experience with creativity and technology at the core will be their offering.

Another recent acquisition is Creative Drive – a creative content, long form, short form content, commercials business with 150 sites/studios all over the world. We heard from the founder of Creative Drive that the reason they wanted to be acquired by Accenture Interactive was for their transformational skills.  This acquisition which took place in August 2020 has created the perfect combination of makers and doers.       

Other than those four highlights, we were updated by some of the world’s leading agencies such as DDB, McCann Worldgroup and Dentsu, and some interesting independents such as The Richards Group and Giant Spoon.  

We probably have on hand about 20 superb and recent case studies, and we will be sharing these at our forthcoming summit feedback session to agencies and marketers at the end of June.

Key learnings

·        How agency healthcare divisions and skills have expanded enormously in the past 12 months

·        How agencies have been productive and focused in the past 12 months

·        And there is a degree of greater optimism and growth as the world starts to return so more in-person contact

·        That agencies and consultants are “virtual weary” and while the importance of staying connected cannot be over emphasised – with the Summit succeeding in doing that – we sense that both agencies and consultants prefer the intimacy and confidentiality of the in-person Summit format.

Next stop London Summit in November 2021.

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The AdForum Global Summit - Helping clients thrive during the pandemic - part 1

The AdForum Global Summit - Helping clients thrive during the pandemic - part 2

AGENCY SCOPE fieldwork to provide new levels of value

AGENCY SCOPE’s biennial research on trends within the marketer-agency relationships has taken to the field on a high note, as the number of participants to be interviewed has rocketed from 70 decision makers in 2016 to 500 in 2021

SCOPEN partner and CEO of the Independent Agency Search & Selection Company (IAS) Johanna McDowell says 300 of the interviewees are expected to be Chief Marketing Officers (CMOs), providing AGENCY SCOPE with “from the horse’s mouth” value for all subscribers.

“Virtual interviews will be conducted online for an hour, with a team of five professionals taking participants through the rigorous discussion and questioning that has made AGENCY SCOPE a must for its credibility,” says McDowell.

“The rapid call for digital and remote solutions and communications that the pandemic brought in 2021 means AGENCY SCOPE 2021/22 has fine-tuned our traditional questions to meet the requirements marketers will have in 2022.”

To dig deeper into what marketers are looking for in agencies and how agencies are stepping up to expectations within this altered environment, updated questions across a number of areas now include market trends, agency perception, agency performance, and what participants perceive to be the ideal agency.

Cesar Vacchiano, President and CEO of SCOPEN International, says this key information will cover an agency’s ability in strategic planning, knowledge of the market, client and brand; creativity; and professionalism.

“Many CMOs want integrated services from their creative agencies, and these agencies have evolved to attract talent in many disciplines related with BTL and digital, the latter being of prime importance right now,” says Vacchiano.

“An exciting new section of the research is quizzing more agency professionals on key factors such as talent attraction and retention. This and other core data around staffing and agency culture will enable us to produce a Best Agency to Work for framework.”

Deeper analysis to meet global conditions

McDowell notes that current global conditions have given rise to the need for deeper analysis across the industry. “In response, this fourth edition of AGENCY SCOPE will not only see marketers evaluating agencies, but the agencies rating marketers and clients.

“Within the strictest confidence, each subscribing agency will be able to identify others most likely to provide the toughest competition for them and use that information to up their game. Our post-interview analysis will provide a final report with analysis by agency profile, type of companies, stated verbatim from clients,” says McDowell.

“AGENCY SCOPE’s executive summary of the report, highlighting key data trends data from the study, will enable subscribing agencies to conduct their own evaluation of other agencies in order to set benchmarks for their own services,” Vacchiano asserts.

McDowell concludes that analysing and publishing AGENCY SCOPE fieldwork data will give rise to a SCOPEN  Data Platform that enables subscribing agencies to tap into the data that they can use to set new benchmarks in this rapidly evolving industry.

“We are extremely excited to keep our subscribers in the know, at a time when the only thing we know for sure is that we need to know more.”

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AGENCY SCOPE: Trends on the path to a new world agility

Courage under fire. How marketers and agencies made lemonade

Come what may there's a marketing strategy for that

As the world continues to navigate a not-quite-post Covid world, savvy marketers are already combining lessons learned with possible future setbacks to ensure they’re ready for both upturns and curve balls, writes Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner.

Consumer – and therefore marketer – behaviour can never go back to what it was before. Consumers rapidly got used to ordering online and goods arriving fairly promptly, creating an expectation of a higher service level than ever before.

As marketers quickly positioned brands in ways that made them easily accessible to clients in lockdown, e-commerce finally got the glory it deserves in South Africa. As I’ve said before, this has placed digital front and centre of all marketing operations in the business to consumer (B2C) sector.

However, retailers can’t afford to ignore the value of hybrid shopping, and the omnichannel wave we’re seeing. Brands offering services will still need to boost their online presence to help consumers cut through the clutter, so covering all bases is vital.

Strategy for making your mark

Cognizant of predictions of a surprising upturn in a number of global economies – and even a marginal, unexpected one in South Africa – predicted by firms like Deloitte and PwC, astute marketers are already reviewing their internal and external capabilities and those of the agencies they currently work with.

The IAS is seeing some marketer investment in setting up a dynamic business strategy that can be adjusted to suit a market that demands flexibility. For some, this may mean investing in talent that not only survived the Covid crunch, but actually thrived. For others, a strategy that uses synergistic relationships with trusted partners as and when needed. This would give marketers the benefit of top creative and digital skills, without the staff complement on their payroll.

Factored into this strategy must be some sort of retainer to ensure the marketer’s hand-picked partners make themselves available as and when needed.

Looking back over 2020 and the first quarter of 2021, marketers must note their core strengths and weaknesses and examine their company culture to make changes where required.

This will include managing expectations from their own staff and agencies. A recent Forbes article cited a Harvard Business School study, which included over 3 million people who worked from home, found that the “average workday increased by 8.2%” during the beginning of the outbreak.  

Importantly, any post-pandemic strategy must be underpinned by the marketer’s key goal and what must be done to attain it. Build it around a timeline so that internal and external capabilities are available for a financial upswing – or another lockdown. Nobody wants to entertain the thought of further lockdowns, but factoring in the possibility will ensure your ability to stay the course, come what may.

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On the rebound: Agencies polish up post-pre-pandemic relationships

Economic recovery. Prepare for the upswing

On the rebound: Agencies polish up ‘pre-post-pandemic’ relationships

While the pandemic is far from over, the anticipated upswing in marketing means agencies must review the lessons learnt over the past 12 months, to match the steps marketers are taking to get back in the swing of things.

As we review the market at this “pre-post-pandemic” juncture, agencies are identifying their core strengths and weaknesses while examining their company culture and making changes that enable them to be what marketers need.

The outbreak of Covid left many shellshocked initially, but the resilient soon saw what they needed to do to participate in what turned out to be one of the sectors that actually showed a profit.

Planning for the global trade growth that is expected to rebound by 7%-8% in 2021 means agencies have some serious decisions to make. Those who were able to provide the digital initiatives marketers and brands demanded through lockdowns understand the importance of the platform and are likely ready for the next stage.

Others will be looking to make the changes necessary to stay afloat. According to research giant Forrester, today’s customers expect far more from brands. “They demand more transparency, greater commitment to values, more exciting experiences, and more convenience. To succeed, B2C [business-to-consumer] marketers must craft and execute visionary, customer-obsessed strategies.”

This, of course, means creatives must work with marketers to meet customer expectations to improve brand loyalty and customer experience (CX). What we’re seeing agencies do right now is responding to the needs of marketers who are looking to form partnerships they can count on, now and after Covid.

The agency that is proactive in creating the perfect rebound relationship with marketers is one that will thrive. Focus must be on delivering hyper-relevant, emotionally resonant brand experiences and seeking out the talent that can enable you to do this.

The days of the agency waiting for a brief are numbered, if not over. The winners will be those noting now where advertising is headed in the next few months, and how they can produce the goods that meet changing consumer expectations and desires.

While we’ve all been warned about that “rebound relationship” in the past, this is one you will want to work on, as the rebound from 2020 continues to surprise – and even delight

Economic recovery: prepare for the upswing

Somewhere between the opinions of the doom merchants and those of the bliss mongers there’s rising buoyancy across a number of industries. And with cautious optimism comes the unzipping of wallets.

The International Monetary Fund (IMF) says it expects the world economy to grow by 6% in 2021, up from its 5.5% forecast in January. For advanced economies, the IMF estimates growth of 5.1%, with the US set to expand by 6.4%.

What is driving the most positive global outlook in a year are vaccine rollouts, financial support from many governments and a light at the end of the restrictive lockdown tunnel.

SA firms creating strategies for any eventuality

SA companies were hard hit, and most received little fiscal assistance, but the marketing and advertising industries fared far better than many, particularly in the digital arena. The Independent Agency Search & Selection Company (IAS) is already starting to see movement among the more progressive firms to source the talent they know will best serve them in any eventuality – another lockdown, or borderless business and the freedom to meet.

Marketers who had robust relationships with their agencies will be looking to build on those relationships and further solidify their combined ability to serve brands. Agencies, too, are seeking best-fit solutions, either by creating an in-house digital division or by including outsourced expert digital operations in their blueprint for strategy for 2021 and beyond.

Now that both marketers and agencies have showed their mettle in the digital sector, there are fewer barriers to entry for local firms to handle work from foreign clients.

As noted by Emily Cashen in World Finance magazine, while tentatively scoping out a post-pandemic future, “governments around the world will need to shift their thinking from ‘survival mode’ to focusing on future economic growth”. We believe companies must do the same, with a view to changing what didn’t work over the last 12 months and investing in what did.

Meeting the future by strategising now

Key among the latter has been digital infrastructure and ongoing training for staff, not only to meet today’s Covid-compliant requirements but to be ready for whatever may be needed tomorrow.

Now that both marketers and agencies have showed their mettle in the digital sector, there are fewer barriers to entry for local firms to handle work from foreign clients. Upskilling talent on a regular basis, or outsourcing specific jobs to trusted solo or smaller firms, is vital to ensure your ability to work from anywhere, with anyone.

While not all economic upswings are equal, SA’s output is expected to grow 3.3% in 2021, according to Deloitte. Even though this is comparatively low when viewed in the context of global growth, the feeling across our industries is one that is in that cautiously hopeful place between the doom merchants and the bliss mongers. And after what 2020 brought us, this is not the worst place to be.

Click here to read this article online

Courage under fire: How marketers and agencies made lemonade

The old adage talks about how to react when life gives you lemons - but under circumstances unseen in our lifetime, what do you do when life hands you a pandemic? If you’re in our sector, you respond with grit not seen in our lifetime, writes Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner.

“Where were you when the world shut down?” is a question we’ll raise at dinner parties far into the future, and each of us will tell our story. Each sector will relay either devastation, just getting through the trauma or being able to take the challenges Covid19 created and making something special.

SCOPEN’s January 2021 white paper The Show Must Go On: Success stories during a pandemic shines a light on some of the marketers and agencies who faced fire with fire and braved these less favourable conditions with agility and boundless creativity.

Burger King in Brazil comes to mind for a campaign that not only reinforced the slowly-growing body of medical wisdom at the time, but also used one of the pandemic’s key methods of stemming the spread of the virus – stay at home to flatten the curve – to underpin a winning campaign.

The premise saw the “gamification of a duty, where any obligation is more easily endured when there is an emotional or material reward for fulfilling it”, according to Rafael Donato Creative VP DAVID agency. “We gamified the quarantine, turning the isolation time into benefits at Burger King.”

The campaign saw 238,000 people staying home for over 27 days, racking up a massive 306,000 rewards given out by Burger King. ROI from media mentions all over the world – uncountable and invaluable.

Necessity as a driving force

The primary driving force for most new initiatives is need, and Covid19 provided plenty of that. From the Nike campaign in China to Orange France’s 700,000 connections uniting people all over France, big brands went the extra mile to help out wherever they would be most effective. Even South Africa’s Shoprite Group kept supply chains open during lockdown, reducing risk for customers and providing essential products and services without profiteering.

Most striking when we read through the white paper is how marketers and agencies worked together so closely, even while they were not allowed to be close.

This is what we at the IAS mean when we talk about the value of an authentic relationship between marketers and agencies. People from both sectors were effectively in silos, but working as one mind to meet the demands put on them. The courage it took to trust each other was immense and paid off in spades.

Imagine just two years ago telling a TV production team they would have to create vital messaging during an unprecedented time in history – but they weren’t allowed to meet in person. Many of us would have put money on an epic fail. Instead, driven by necessity, teams found workarounds, ways and the will to put the best of themselves into projects that truly made a difference.

I’ve often said that the attitude “That’s the way we’ve always done it” has no place in our business, and SCOPEN’s The Show Must Go On is proof that when all there is are lemons, we can – and do – make lemonade.

To enjoy this exceptional, innovative and courageous creative work click here 

Lessons in courage and innovation in a pandemic

The sheer enormity of the sudden-onset Covid crises took the wind out of sails across all industries, globally. However, writes CEO of the IAS and Scopen partner Johanna McDowell, there are gems shining brightly across the marketing landscape everywhere...

Scopen’s 2020 tribute to the agencies and advertisers that looked past contracted economic activity, budget reductions, lockdowns, social distancing requirements and quickly-implemented remote working is testament to courageous innovation of marketers and agencies that rose above the mire, against the odds.

Cesar Vacchiano, president and CEO of Scopen International, says: “With The Show Must Go On: Success Stories During a Pandemic, Scopen wanted to pay tribute to the agencies and advertisers who came together and creatively tackled the immense difficulties brought on by entirely unique circumstances.

“We want 2021 to further strengthen this collaboration and creativity, and asked our international network to share cases strategies quickly and effectively adapted to the circumstances and local campaigns that demonstrate the considered agility of our industry to meet challenging, unfamiliar circumstances and soar.”

The Show Must Go On is a lesson in absolute delight for those of us in this industry. From the Brazilian team that partnered with fast food company to gamify the lockdown and awarded prizes for staying home during lockdown to the beer brand that changed its name to show appreciation for doctors, while removing the alcohol from their beverage and donating it to a sanitiser manufacturer, the gems in this White Paper are exceptional.

The star of South Africa

The South African initiative that stood out is the Shoprite Group and 99c collaboration that leveraged the launch of the Checkers 2019 customer loyalty programme Xtra Savings to launch Shoprite Xtra Savings, as well as the pilot online home delivery service, Sixty:60 – shop in 60 seconds with delivery guaranteed in 60 minutes.


Both marketer and agency found innovative ways to work together, from home, with tight deadlines. The results show what a streamlined, world-class partnership can do: Despite the poor economy and impact of Covid-19 on market share, new Checkers Xtra Savings customers benefitting by savings of over R972m collectively in only nine months (at end-June 2021) with sales growing by 6.4% year-on-year.

In studying The Show Must Go On, we see how advertising needs to adapt with agility to its environment and return on investment is greatest if it is relevant to and empathises with the consumer.

Importantly, the very best advertising is a result of a close marketer-agency collaboration and a willingness to turn the bow of boat and set sail for maximum success.

The IAS Masterclass with Cesar Vacchiano is set to take place on 21 April at 2pm. RSVP to radams@scopen.co.za

Why media agency pitches will lead the way in 2021

Listening to our agency and client colleagues in recent months as well as investigating through our own research via SCOPEN on the impact of Covid-19 and the trends in media spend, 2021 may be the year of the pitch.

As one of the leading pitch consulting companies with a rare view into marketing, media and agency trends, the IAS is predicting that 2021 will be a busy year for media pitches. There are a number of indicators for this assertion.

Firstly, media spend dropped across all media types during the toughest part of lockdown in 2020, with the exception of digital media which has proved highly resilient and had the edge with e-commerce boosting spend.

While spend recovered a little – notably during the latter part of 2020 – media owners are still enduring some dramatic changes and losses in spend which caused many changes and closures of several print publications early in 2020.

Another notable trend: Media owners are able to offer marketers extraordinarily attractive deals due to the amount of inventory they have available and are often going directly to clients instead of via the media agencies.

The behemoths of digital media owners Google and Facebook have been dealing directly with marketers since day one as well as with traditional media agencies, possibly more reluctantly with the latter. Add to this that the unstoppable Amazon – the world’s second-ever public company to be valued at US$1 trillion, after Apple – is likely to make its presence felt soon in South Africa, and impact will be felt.

SCOPEN research shows that media agencies globally have been consolidating in the past six months as they consider the impact of the downturn in spend and start to review what will be the likely forecasts in 2021.

Also, there’s the convergence of digital media creative agencies providing marketers with a very effective one-stop shop to meet the growing portion of their marketing and media spend, even if choices are limited.

Media agencies as go-to advisors

Amid this activity, marketers must continue to reach their consumers in the most effective channels and with optimum spend. This means media agencies will be in a stronger position to advise clients than they have been for a number of years. 

For around 20 years, creative agencies in South Africa have been the first port of call for many marketers seeking to improve their results, with media agencies playing a support role. Change is already happening, though, as marketers realise that information about consumers is part of a media agency’s data-set in order to plan and execute media campaigns – and data is power.

Within the broadcast sector particularly, this knowledge is highly prized, being precisely gathered and able to provide real currency for media strategists and planners to deliver the most valuable results to marketers.

Media agencies note that their reviews are often led and managed by procurement heads at many of the corporate organisations, which means that there’s a focus on negotiation skills or best rates. However, the influence of what marketers need must not be overlooked, especially during these uncertain times.  

The lengths budgets must go to…

Media budgets are often far larger than creative budgets, and yet those budgets have to go a long way in order to provide the results marketers seek.

AGENCY SCOPE studies of CMOs globally and locally show that while the ability to negotiate with media owners is important, what marketers really want from their media agency partners is innovative thinking, strategic skills and a robust understanding of the client’s business.

According to our own IAS data, there were probably in excess of 70 media-only pitches last year in 2020, involving vast amounts of media spend. Some of those pitches were reviews that happened as a result of contracts coming to an end and, in a number of  cases, the incumbent media agencies were re-appointed.

This indicates that marketers and procurement heads do indeed benefit from regular media agency reviews, setting the tone for more pitches this year.

With data, analytics, analysis and innovation becoming more critical to the success of marketers today, I predict that the media agency pitch process will grow more complex and more important as marketers navigate their way through an unpredictable landscape to successfully reach their consumers and ultimately deliver results to brands that the C-Suite demands.

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Evolution of our industry: Shortlist for projects

The start of last year brought the usual New Year predictions, all stymied by the pandemic, writes Johanna McDowell, CEO of the Independent Agency Search and Selection Company (IAS). Now, the blank slate that is 2021 is seeing innovators seeking opportunities and creating new solutions.

As a leading intermediary consultancy focusing on the optimal marketer-agency relationship, the IAS quickly notes and explores trends and workable new ideas that are beneficial to all parties.

While the relationship between marketers and their agencies is usually a long and fruitful one and this will not change, Covid-19 has generated many requests from marketers for IAS assistance in finding agencies to help with communications projects to supplement and give additional support to existing agency relationships.

Based on this demand and SCOPEN research that backs it up, the IAS delved into the value of small, agile agencies being able to step in when a marketer requires a specific skill set and ability within an exacting timeline.

Pre-qualified shortlisted agencies

The result is a “shortlist for projects”, where marketers are introduced to the agencies the IAS has determined are best suited to their immediate requirements. This obviates the need for the long exploration process that usually goes into finding the right fit and presents marketers with a small, pre-qualified choice.

Typically, the projects are in the areas of crisis comms, internal comms, social media management, PR and reputation management, digital requirements, and the like.

The IAS offering a list of five agencies in total, with experience in the relevant disciplines that marketers require, including the following:

·        Detailed agency business credentials such as size of agency, location, BEE level, capabilities, case studies / examples of work

·        Key contact person at each agency with all the necessary contact details

·        Researched opinion on each agency from the IAS regarding competence and track record

Marketers will be able to select one or more agencies from the shortlist to interact and communicate with directly. The IAS will not manage a pitch process in this instance, but merely supply relevant credentials and contact details.

Because interesting times call for specialised assistance, this offering is proving to be a robust addition to the marketer’s arsenal, while generating cashflow among the smaller agencies that have the capacity to step up for brief, often once-off projects.

Time is money – and in this economy, you can take smart, novel creativity and rapid execution of projects to the bank.

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A marriage made in mediation – world class client: agency management

The two viewpoints couldn’t be further apart: An agency says, “You never lose a client on delivery, it’s always the relationship”; while their client says, “I really like them as people, but it’s all about delivery”. The fact that the two aren’t talking to each other when these things are said is clearly why client-agency relationships fail unnecessarily.

In 14 years of counselling clients and agencies around expectations in the advertising, marketing and communication process, the Independent Agency Search and Selection Company (IAS) has salvaged many a valuable client-agency relationship by having each actually hear what the other is actually saying and fostering a spirit of transparency and willingness to communicate between the two. Global research by our UK partners AAR show that lack of delivery is a clients’ key issue with their agency, whereas agencies often feel that they were not briefed correctly, or the brief was late and the client shows little understanding of times required to complete the task at hand.

Each perspective is valid: No agency can be expected to deliver on an incomplete brief and under unrealistic time constraints. On the other hand, if a client is launching a product or undertaking a sales drive, there are so many strings to pull together to ensure success that agencies often don’t realise. While the agency is trying to figure out the brief, the client is seeing sales or production opportunities slip by.

At this point, neither is going to truly “hear” the other, and carefully managed change is vital to keep an already fragile relationship on track. Clients must be encouraged to see how clarity on deadlines and detailed briefs can get a campaign started on the right foot. Their knee-jerk reactions to economic issues that affect their market also affect their agency and its delivery, which creates tension and leaves agencies thinking the client just doesn’t want to continue the relationship.

Plasters don’t work

Continually “putting a plaster” on irritations that arise in the relationship doesn’t heal the core issue, and ending the association is costly and often traumatic. So, what are the key solutions to nursing it back to health?

Briefly, it begins with talking openly in a mediated environment where both parties agree the relationship is worth saving. Then, both must be clear on what they understand about the other – requirements, deadlines, deliverables and expectations on delivery. Regular and constructive feedback sessions should be formally structured and implemented, and a 360° appraisal programme to support learning and progression for both parties should not be left until it’s too late. Both parties accepting responsibility for their part in any issues will also encourage more trust and understanding and leave the door open for honest discussions into the future.

In reviewing global issues between clients and agencies, it’s clear that a breakdown in communications often sees real business concerns end up in “he said, she said” spats and an irretrievable breakdown in communications. The question of “fix or fire” arises again and – like a marriage that just requires an adjustment of expectations – the IAS suggests always opting to fix before fire.

If you feel that your agency or client gives you “a poor response”, know that research shows they feel exactly the same way you do. Without mediated communication, your sense of “they don’t deliver” is met with “their demands are unrealistic”. A proactive response from both parties is required and we recommend ongoing evaluations to ensure reasonable expectations are being met by both parties.

To both clients and agencies we say, set yourself up for success. Get your team dynamic right, be purposeful, be communicative and – importantly – ensure you create a strategic space for both parties to come together and discuss issues that can see a long and mutually beneficial relationship thrive.

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