Agency Scope SA: Divulging what marketers really think

With the fieldwork for Agency Scope South Africa 2023/2024 set to make tracks in May, the biennial study, which ultimately divulges what marketers really think, takes some interesting twists and turns as the scope of the communications sectors adapts to the pandemic, technology and global developments.

Scopen president and CEO César Vacchiano notes that an increased number of respondents will be interviewed this time around, with sights set on 220 client companies, compared to the 158 in 2021.

In-depth info on sustainability and diversity, equality and inclusion (DEI)

“There will also be more interviews with marketers including – importantly – companies from the new economy,” he says. “Look out for the dot coms, startups and digital platforms.”

Participants now also include chief technology officers (CTOs), chief innovation officers (CIOs), heads of digital companies, and those working in the all-important customer experience sector.

“Due to their importance globally, we’ll be getting in-depth info on sustainability and diversity, equality and inclusion (DEI) to add the South African market viewpoint to our worldwide knowledge bank,” Vacchiano says.

Digging deep into digital

Data will include digital platforms and digital tools and how marketers work with them.

“So, this focuses on how they collaborate with Google, Meta, marketplaces, Twitter, TikTok and other new communication options,” he says.

He adds that that data from marketing tools, marketing automation and personalisation such as SalesForce, Adobe Selligent Marketing Cloud and Microsoft will also form part of the research, analysis and knowledge shared in Agency Scope 2023/2024.

“All those tools require investment,” Vacchiano asserts, “so working with the right partners that have the appropriate profiles who understand these tools for implementation by brands is important.

“We’ve noted that some who purchase these tools to better compete often don't know what to do with them, and how to use them for their marketing objectives. So, agencies that can assist with the tools, digital strategies and use of platforms are the ones more sought after now.”
Groups or independents?

Large holding group versus the independent agency

Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and Scopen partner says research for the next Agency Scope will also delve into the value of working with a large holding group versus the independent agency.

“The responses we’re looking for include what clients find most valuable for their needs, and what the strengths, weaknesses, and benefits are with a marketer’s choice of independent or group agencies,” McDowell notes.

Vacchiano promises a deeper research and therefore analysis on the various digital verticals related to Martech, including CRM, mobile and apps, e-commerce platforms, the Metaverse, and Web3.

“We want to explore which of these are important for clients and, of course, which they are they investing in - if any,” he says.

“The value for our subscribers will centre around what type of companies the C-suites and business leaders in our industries are working with and how they work with them. Equally important will be how they evaluate these new disciplines.”

About that captivating talent...

McDowell says another area growing rapidly in importance is how respondents value a good professional team.

“Does the talent employed by a specific agency make a difference? Which agencies have highly recognised leadership and does this influence the agency selection process?

“Sometimes individuals captivate a client due to their strategic vision, their ideas and innovation, or – these days – their understanding of digital and MarTech. These individuals can help transform brands and businesses and we’d like to hear their value from the horse’s mouth.”

With the Agency Scope researchers raring to go, Vacchiano says his hope is that this information gives participants some early insight into what they’ll be required to respond to.

“Respondents’ lived experience has changed over the past few years, and Agency Scope relies on this valuable insight to add the South African perspective to our depth of knowledge.”

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Making friends with data

Fear of job losses and big egos stand in the way of the level of collaboration needed in the digital age

It’s not often those in the advertising and marketing industry are blunt and critical. It’s a sector partly built on smoke, mirrors, spin, and client retention at all costs. And so, when a little honesty is handed down, it’s not only refreshing but should be taken seriously.

César Vacchiano, president and CEO of Scopen, a global industry research company with a strong footprint in South Africa, believes that for media and advertising agencies to flourish in the digital age, they need to increase their co-operation and ability to source and manage data.

What’s preventing more collaboration, he says, is a fear of downsizing and consequent job loss; not knowing how to rationalise inevitable duplication; and the big egos preventing the process.

Vacchiano has been in South Africa ahead of work on the Agency Scope survey that is published every two years after meetings with decisionmakers across marketing, communications and advertising — from the largest- to the smallest-spending agencies in South Africa.

Given the importance placed on data, the study will also incorporate leaders in digital, technology and innovation.

Vacchiano says brands’ relationships with data have changed irrevocably.

“What marketers realised after the pandemic and various other global shifts is that it’s difficult to make decisions, and what they need is data that shows them trends and what is happening with consumers to engage with and get closer to them. They need to understand all the media and media channels, competitors, and new generations and new targets.”

His argument is that data is evident across the entire media value chain but needs to be used more effectively across every facet of the marketing process, from planning and buying to idea development and content creation.

A perennial problem — and more pronounced in South Africa — is not just the data overload factor but having the right people to interpret it meaningfully.

Vacchiano concedes it’s a problem. “There is often too much data to go through and read so agencies need people within their teams to condense and extract points of interest. They want extracts with key findings, and they are realising how important it is to work with partners who use that data to find insights and build solid strategies that will produce big ideas.”

And then, a view that is likely to upset ad agency studios, he says: “And that’s why, after the pandemic, strategists have become even more important at times than creatives. And what is making the difference now when selecting agencies and evaluating their services is their strategic planning capabilities. What is needed first is to identify insights that will create solid strategies and with those solid strategies it’s easier to build and create big ideas.”

Vacchiano says he is, however, starting to see better integration between the creative and strategic sides in agencies.

“It’s changing very fast because more and more clients want to go for ideas that are based on data and solid strategies. It’s difficult to find clients that go for ideas that are just creative concepts on their own. They want to reinforce those ideas with data.”

And complicating the equation is the rapid introduction and growth of artificial intelligence (AI) and chatbots and their impact on content.

Vacchiano isn’t particularly worried. “The most effective ideas are those that include emotion in the campaign, and I think machines can learn in future, but I think now it’s very unlikely that AI will create campaigns that resonate in peoples’ hearts — that make them cry and smile and really bring their feelings to the brand.”

While agencies need to rethink their operating approach to become more data led, Vacchiano isn’t for one moment writing them off. “What happened during the pandemic is that clients realised with all the agencies they were working with, the ones that used data in their strategies to get through the pandemic to reinforce their positions in tough times made great partners. The role of agencies was reinforced.

Furthermore, clients have also realised how important it is to deal with the leadership of the agencies and not the juniors and account directors who do not necessarily have the level of expertise and holistic vision you should find in agencies. All of this has made clients realise they need to work with agencies and pay these experts more to produce valuable work.

So there has been a rediscovery of the talent that exists in agencies, but also a recognition that the talent needs to be used effectively with interaction at the right level. This will inevitably help agencies to elevate their position within client ranks.

Read this article on Financial Mail Redzone here

Unpacking SA's marketing economy

Twice a year the Worldwide AdForum Summit brings together search and agency management consultants. In April 2023 this select group will be meeting in New York for AdForum's NYC Summit. AdForum's managing director Carol Mason takes the opportunity to hear from these key influencers about the marketing economy in their countries and chatted to Johanna McDowell, founder and CEO of the Agency Search and Selection company about the marketing economy in South Africa.

What are the biggest challenges and, therefore opportunities, for brands in South Africa?

1.     Keeping up with global trends and needs so that brands remain competitive.

2.      Aligning spend with marketing objectives – often those objectives are in excess of what the budget that is allocated can deliver. This results in pressure on the agency partners to cut corners to deliver results.

3.      Fragmentation of marketing channels – reaching consumers in a way that will drive purchase and repeat purchase. Brands are not certain where to spend their money first.

4.      Building brand value v driving sales – a continuous dilemma for brands during tough economic times.

Looking at media consumption, what formats or channels would you say are most prevalent in the country?

1.     Television is still dominant but the way in which consumers access their programmes has changed.

2.      Tracking of the way in which television advertising is consumed is a big pre-occupation currently as consumers are accessing via different devices. Streaming of various channels has posed new challenges – this is particularly important when managing ad spend on TV.

3.      Outdoor advertising is big in South Africa due to our rural communities and size of the country.

4.      Radio is a vital medium for consumers here as there are many different languages and the country is geographically spread out.

5.      Printed magazines and newspapers are dying or have died. Digital media is thriving.

6.      Digital experiential spend is also a new frontier for advertisers.

Getting a feel for African brand heritage, new entrants and customer loyalty, how difficult is it for a non-South African brand to enter the country and win market share?

1.     South Africans love global brands and are always very excited when a new global brand enters the market.

2.      Global brands are often able to spend more than their local counterparts due to the currency differences e.g. the dollar stronger is stronger than the rand – buys more media space etc.

3.      South Africans generally are very brand conscious and will spend more on a well-known brand in preference to cheap counterfeit varieties.

4.      Local South African brands are very successful too of course, such as Nando’s which is now a global brand and whose brand marketing is managed from South Africa.

5.      South African food brands are also very popular and successful locally.

What is your best advice to an agency shortlisted for a pitch? What makes for a winning proposition in South Africa?

1.     Understanding the different cultures in South Africa is an essential ingredient for an agency to be successful in a pitch.

2.      Reading the room – understanding the diversity within a client marketing team and ensuring that the agency team is even more diverse both from a racial and gender perspective is essential.

3.      Demonstrating successful delivery among existing clients through strong case studies is very important as CMOs need to know that an agency can and will deliver.

4.      Then there are the obvious tips:
- The team presenting must be the team that will be on the business should the agency win. (Clients absolutely hate it when agencies do not do this.)
- Read the brief, present what is requested then show the client prospect what else is possible.
- Respect the budget provided but again show what else could be possible once you have delivered on the brief.

Which campaign / activation / promotion caught your eye in 2022 and why?

1.     Fast delivery campaigns have been very eyeeye-catching and novel here and the large stores – mainly food chains – continue to develop and deliver these.

2.      These are fully integrated campaigns that focus on the app for ordering and delivery and then on the ways in which delivery can be done. It’s been a huge growth area in the e-commerce space in South Africa in the past 12 months.

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Media assurance: Data-based map of how your budget works for you

The vital role of media assurance for marketers and agencies examining 2022 expenditure and planning their 2023/2024 expenditure cannot be overstated.

This is the word from Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and SCOPEN partner; and global media and marketing consultancy, Eley Consulting’s Richard Edwards, whose partnership in media assurance auditing responds to the acronym on every CMO’s mind: ROI.

“With over 70% of corporates financial year starting on 1 March, strategies and expenditure will be top of mind as they head back to work in January,” says McDowell.

“By applying in-depth, independent media analysis, CMOs can see precisely how and where they spent their money, and how efficient that spend proved to be. Obviously, fiscal efficiency is essential right now, and following a blueprint that shows quantifiable ROI can set a marketer up for better savings and greater outcomes.”

Where data makes the difference

Media assurance auditing involves review of every area of a media process across all platforms to provide marketers and media agencies with robust data to see which area is aligned with best practice.

“The data gleaned from this process provides the CMO with a GPS, as if it were, mapping the route taken and the route ahead, complete with warning and potential detours,” Edwards notes. “We review the entire landscape of a media process across all platforms to help marketers and media agencies see which areas are aligned with desired outcomes.

By conducting a series of interviews and collecting media data and supporting documents from a client over a 2-4 week period, the IAS and Eley Consulting are able to maintain regular analysis over a number of campaigns. “It’s the analysis of this data that can direct a client to make changes in their budget with agility, taking advantage of what is working for them at the moment,” says Edwards.

“Every CMO – and CFO – is constantly pursuing improvement, especially where it results in time and cost savings. Assurance auditing may not always mean cheaper media in cash terms, but will certainly ensure an agency is delivering as substantial a schedule as possible.”

Optimising opportunities

Both Edwards and McDowell reiterate the significance of media effectiveness to marketers and media agencies, both of which need to prove that budgets are optimised through the most valuable advertising on the right platforms. “Of paramount importance is determining who is keeping an eye on the measurable return on investment,” McDowell says.

“With the acceleration of spend into paid digital media likely to continue in 2023, marketers are seeing its impact on brand awareness as well as ROI. The map for next year and 2024 must be able to show both the increased spend in this area and its benefits, which is not a simple one for marketers to review,” she says.

The IAS and Eley Consulting partnership’s expertise across platforms and its independence is pivotal to its ability to empower clients to better understand the scope of advertising opportunities and take control of it, in conjunction with their media agencies.

“Media assurance auditing is a quantifiable benefit to marketers, agencies and media houses, providing the transparency in cost and compliance that is vital to sustaining trust between all parties,” Edwards concludes.

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What makes for the perfect client-agency relationship? Poll provides insights

The annual Financial Mail AdFocus Awards celebrate individuals and agencies both for their creative marketing skills and for their overall business acumen.

But what makes for the perfect agency — or the perfect client for that matter? And what's essential in building the perfect relationship between the two? 

To find out, the Independent Agency Search and Selection Company (IAS) and Scopen, proud sponsors of the 2022 AdFocus Awards, ran a short online poll during the hybrid awards ceremony on November 30.

Respondents were mainly from agencies, and the results highlight the pulse of the advertising industry at the end of last year.

Defining the perfect client

When asked to select the most important criteria in defining the perfect client, the majority of respondents mentioned either those clients that respect timing (27.8%) or that remunerate their agency adequately (27.8%).

Other factors that contribute to making the perfect client are highlighted as being the desire to work with an agency long term (16.7%), a good professional team in the marketing department (11.1%), and a client that has industry knowledge (11.1%) of the marketing executives working for a particular brand.

Defining the perfect agency

When it comes to what makes for the perfect agency, the majority of respondents (40.9%) said that creativity/innovation is most important factor.

Other criteria that define the ideal agency were mentioned as being a good professional team (13.6%), providing effective return on investment (13.6%), and offering good value for money (9.1%).

It's worth noting that 9.1% of respondents also mentioned strategic planning in this regard.

This highlights how, in SA and globally, data and strategic planning (the understanding of that data) are becoming increasingly important, mainly because marketers are starting to appreciate that without solid strategies, big ideas are not produced.

Defining the perfect client-agency relationship

Again, adequate remuneration appear to be a major factor (52.2%) in defining the perfect client-agency relationship, mainly mentioned by agency professionals responding to the poll.

Personal relationships (17.4%) and partnerships (8.7%) were ranked as the second and third most important criteria. 

Scopen CEO César Vacchiano says building long-term relationships comes down to trust and confidence.

Having a good professional team on both sides, that share data and information, and clients that remunerate adequately, produce strong relationships that last longer and give rise to impactful and effective campaigns.

10 trends to take us from permacrisis to permahope

Looking into trends for 2023, firstly my hope is that permacrisis, the term that we all have had in mind for 2022, will expire soon and be substituted by permahope or another more optimistic term, because 2022 has certainly been another uncertain and difficult year for all of us.

César Vacchiano, president & CEO Scopen hopes permacrisis, the term that we all have had in mind for 2022, will expire soon and be substituted by permahope or another more optimistic term

1.   Marketers are working with more and more communication partners

This is a global trend. In China, brands mention 25, in Brazil 17 and South Africa is not far behind with 13. The biggest challenge for marketers is to decide which is the best ecosystem of partners for their brands, and how to coordinate them.

2.   Data

The Covid-19 pandemic has made marketers realise how important data is, and made them seek data related to trends, technology, consumers, newer generations… Brands want to understand what is happening, reduce uncertainty and be able to engage with their consumers without barriers, in order to be loved and meaningful to them.

3.   Strategic planning

Along with data, strategic planning is also becoming increasingly more important, as marketing directors realise they need a different type of talent to help them digest all the different sources of data, identify ‘insights’, and come up with the best strategies that will be the base of big ideas.

4.   More integration between creative and media agencies

Because data is mostly handled by media agencies, being one of the weaknesses of some creative agencies, marketers are asking for more integration between creative and media agencies. They believe their media strategies would be more powerful and their teams more efficient if they thought and worked together.

5.   Social media, e-commerce and the Metaverse

Investment in social media is increasing, and more specifically, towards Influencers. Ecommerce is also growing and, in the years to come, we will see more brands entering the Metaverse.

6.   Trust and partnerships

But another consequence of the pandemic is that marketers have realised that digital platforms are just tactical partners that are more interested in sales than strategic partners that help brands in difficult times. Trust and partnerships have been reinforced and consolidated by agencies that have helped their clients navigate the difficult times and continue to do so, enlightening marketing managers about what is happening locally, regionally, and globally, what type of decisions should be made, and which territories they should invest in to get a better ROI.

7.   B2B

B2B will continue to increase in the coming years, with more and more brands investing in B2B while still doing B2C. There are very few specialists in this territory and the few that exist and have developed a profound understanding of the discipline will have a unique opportunity to grow and become powerful partners of the client companies they work with. Cannes Lions has started to recognise these talents and campaigns in 2022, and this category will see a growth in entries soon.

8.   People and talent

People and talent in our industry have always been highly important, and one of the main factors that differentiate agencies. But marketers have never valued their agency team as highly as nowadays. This is also a consequence of the pandemic: marketing managers have realised how important it was for them to be able to deal with high profile strategists, creatives, digital leaders, account managers, media experts, technologists… working together in order to create the best possible campaigns.

9.   Conflict no longer relevant

Conflict related to agencies working for other brands in the same category are no longer so relevant. Clients have finally understood that sometimes it´s beneficial to work with an agency that fully understands one specific sector or category, and take advantage of that level of expertise, as long as the agency establishes the right walls to protect the information from its different client brands. This is one of the advantages of consultancies coming into this industry as they have been working with clients from the same sector for many years.

10. Sustainability and DEI

Lastly, I do not want to leave out the increasing importance of sustainability and DEI (Diversity, Equity, and Inclusion).Consumers will opt for greener choices and all types of companies in our industry are trying to reduce their Carbon Print. The UK´s Adnet Zero programme will no doubt have its replicas in other countries.

At the same time, more and more brands are using agency selection processes that only include agencies that confirm their commitment to DEI with figures from their own agency. More and more agencies have leaders involved in the process of trying to change things. According to Deloitte, 67% of job seeking talent use diversity as an important factor when considering companies and job offers.

This industry will continue to focus, as always, on trying to do good and creating a better planet to live in. Creative talent will keep working with brands to change the world for good. Let’s focus on the thought that, thanks to creativity, we will live in permajoy times in 2023 and the coming years.

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Global trends that will impact SA's creative industry

Although South Africa has many different issues from more developed countries in Europe and North America, some of the global trends that have emerged from there will have an impact in time in this country.

Johanna McDowell, Independent Agency Search and Selection Company (IAS), and Partner in Scopen Africa, examines global trends that will impact the local creative industry

Sustainability and purpose

Sustainability and purpose were two key trends we observed at the recent Ad Forum Summit in Amsterdam where many of the 15 agencies that we met demonstrated their intentions around these two trends not only in the work that they were producing for brands but also in the way they behave as businesses.

Whether through employment policies, level of HR support for staff, interaction with the broader business community, the kind of power they use in their buildings, I had the sense that these agencies were able to be very focused on much broader issues than the day-to-day operational issues that might negatively affect them.

South Africa is not in such a position as we deal with the never-ending power cuts and economic conditions largely rooted in bad government policies and levels of corruption which seem to be pervasive.

Nonetheless, the global trends are being observed and there is a growing consciousness about the need for cleaner energy, sustainable power sources and even the possibilities of a four-day working week.

In-housing agencies

On a more operational level, we see that the in-housing of agencies trend that emerged a few years ago – although truth be told there has always been some sort of in-housing work being done by marketers if mainly executional only – continues to provoke discussion and interest from marketers and that aspects of digital marketing are starting to go in house for some clients.

The challenge here always is the shortage of talent, the opportunities for digital nomads who can work remotely from South Africa anywhere in the world and earn currency that is far more favourable than rands.

While this global trend exists everywhere it is exacerbated in South Africa by the amount of people who are emigrating – the current brain drain.

This definitely already has had an impact – not only on talent for in-housing purposes but also for talent in agencies in general and also within the marketing environment.

As far as in-housing as a trend is concerned it will expand and contract continuously – especially as the short-term cost savings do not necessarily get replicated in future years.

Value of creativity

One of my colleagues at the AAR recently wrote a crystal-ball gazing piece where he mentioned the many factors affecting our industry and what could happen in 2023, and yet he commented how little attention was being paid to the value of creativity and how brands can employ this to achieve their marketing and business ambitions.

Interestingly I read a recent comment by a local agency leader who believes that the pendulum has swung too far to “all things digital” which probably has been caused by the current obsession with ROI and ROAS (return on ad spend).

I think he may be right and that the pendulum might swing back a little during 2023 more to bigger ideas and higher levels of creativity in order to build brands for the longer term.

Skills shortage impact on growth

On that note the question is being raised constantly here in South Africa about the skills shortage in the marketing community and that there are middle to senior marketing managers who have not been fully equipped with the skills they need to practice marketing at a level that will promote growth - the all important factor in our economy here in South Africa and of course globally. Unless these marketers are better equipped – and perhaps this is where agencies could assist – the skills shortage will have a long-term impact on the growth of this economy.

These trends are quite serious, not light-hearted and frivolous. I do believe it is because we are in an era of post-pandemic re adjustment which will take us a few more years to navigate before we can finally look back and realise that we all came through it in one way or another -and hopefully better for having had what was a cataclysmic experience.

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Predicting 2023 for creative agencies and clients

The first quarter of 2020 brought a shocking halt to business leaders' end of year predictions in 2019. This, then, is a look at 'likely' industry events and inclinations through my crystal ball, experience and intuition..

A need to tread carefully

A brief glance back at this year shows that while there was a fair amount of pitch activity over the last 12 to 18 months, it hasn’t caught up to pre-pandemic proportions. Indicative of the marketing industry having navigated the changes Covid brought and being more ready to engage, we anticipate the likelihood of more pitches happening early in 2023.

On a cautionary note, I’d say we need to tread carefully. Note which clients are pitching again, largely due to some bad habits created over the last three years. These pitches may be a sign of a marketer attempting to change too quickly, or a sense of anxiety among agencies and marketers afraid of missing out on any new technological advancements that could improve their growth.

This anxiety may be seen in companies spreading their resources a bit too far, thereby fragmenting their budget rather than focusing it. I believe by the end of 2023, there will be a re-focus and marketers will start consolidating again.

A discernment from agencies in 2023

However, for right now and into the first part of 2023, there will be a bit of a run on the smaller pitches, particularly with regard to anything data and digital. My sense is, it’s all part of marketing and a sector marketers do need to explore.

This is not in any way a bad thing, but it does seem that marketers are looking to be certain that they are truly tapped into the latest thinking and technology; and that they have the right partners in place. Growth anxiety in the first and second quarters is likely to be a key talking point as marketers dip their toes into various tech waters.

A spin around the crystal ball shows that, paradoxically, agencies are not going to be quite as anxious to jump onto the next big thing. I believe they will be fairly discerning about what they will and won’t pitch on, which we’ve seen as a result of a shortage of staff, post-Covid recovery and a focus on ensuring existing clients are well taken care of.

In 2022, a lot of growing up took place rapidly, and there’s a greater maturity in the industry now. Many agencies have reduced in size of staff and premises, and their cost base isn’t as punishing as it was perhaps three years ago. So, their discernment is real and a good thing.

A great opportunity for local businesses

What I’m hoping for – and always do – is a few new start-ups. Not sure where they’re going to come from, but there is a lot of talk and movement around the technology space in terms of fintech and new tech in general.

These are interesting industries, and we can expect more start-ups in the financial sector. I’m wondering what that may spawn in terms of agencies - will there be agencies that need to specialise in that area? I believe so.

It’s a great opportunity for local businesses, as has been seen in the US for around four years. It’s something that will require ad agencies, marketers, public relations and communications specialists to glean knowledge quickly to provide services.

During Covid, PR was vital and took up its rightful place. There was reputation management, healthcare, cause and other communications that needed to be heard.

The burst of activity in 2020 and 2021 seemed to die down with the onset of 2022, but perhaps the growth in digital and online activities will create opportunities for PR agencies with the required knowledge and experience.

The CMO and agency partners’ conundrum

Recent studies show that the average number of agency partners and platforms in South Africa is 13, but some have as many as 20. It may be prudent to have fewer partners and we’re wondering if this scenario will change, given it also means a fragmented budget.

Senior marketers are seeing this gap in their communications and noting what they must do to rectify this. Greater skills are required, including knowledge about what is possible in terms of technology.

What we may see here is a closer relationship on the client side, between the technology and marketing teams, who will need cohesion and expertise to create effective messaging.

Coming to the party

Finally, the big “work from home” debate will continue into 2023. While some leaders in the marketing and agency side are succeeding in getting their staff to come back to the office, others appear to be considering their stance. It’s clear that in these industries, creativity is enhanced by being in contact with colleagues.

While there’s much to be said for working from home, there’s an equal argument for the value of having a diverse group in face-to-face planning and producing creative initiatives.

I believe we need to be measured about our solutions and create in-person moments that add real value.

Merely having staff members in the office two days a week is not really the answer, unless leadership motivates attendance by bringing teams in to work to create, achieve and grow together through projects and campaigns.

By creating opportunities to see the C-suite at work and be a part of shared imagination and innovation, enthusiastic staff will want to be there. When the desire to be with colleagues is ignited by the benefits to an individual both creatively and career-wise, they will choose to be where the chemistry happens

Scopen releases second Sustainability Report results for Latin America

Scopen has presented the main results of the Sustainability Report in Latam at the Latin American Creative Economy Summit +CTG. This report, focusing on developing markets, highlights insights likely reflective of South Africa's future viewpoints.

This is the second edition carried out by the consultancy, as a joint initiative with the UCEP (Colombian Union of Advertising Companies), in order to analyse the role of companies operating in the marketing and communication sectors in Latin America, in compliance with sustainable development goals.

Sustainabilty

The report was developed during the months of August and September 2022, and involved the participation of 100 professionals from advertising companies from eight countries in the Latin American market, of which Brazil had the highest representation.

The average age of those professionals interviewed is 42 years. Most of them are marketing directors (20%), multinational companies (56%) and, above all, belong to the FMCG sector (32%).

When interviewees are asked about the words most associated with sustainability, environment stands out first, followed by responsibility (in 2021, this order was reversed). In addition, we see an increase in mentions of circular economy (in third position) followed by future and recycling (a new mention this edition).

Among the Sustainability Goals (SDG) which the interviewees consider that companies are more involved with, the following stand out globally (with some differences depending on the country analyzed): SDG-08 Decent Work and Economic Growth, SDG-05 Gender Equality and SDG-03 Partnerships to Achieve Goals.

On the other hand, when they talk about the actions that they are carrying out today to meet these Goals, the most mentioned, also globally, are those that promote diversity/equality/inclusion, followed by communication campaigns and those aimed at reducing environmental impact.

Responsible consumption

Looking to the future, however, they claim to work more towards others such as SDG- 02 Zero Hunger, SDG-015 Life of Terrestrial Ecosystems, SDG-01 End of Poverty and SDG-13 Climate Action.

The most active sectors in the fulfillment of the five SDGs that were most mentioned in 2021 are food, followed by culture and media and associations and NGOs.

In 2022, the importance that the interviewees give to SDG-12 which guarantees responsible production and consumption modalities (especially related to the industry analysed), stands at an average of 7.9 points out of 10 (in 2021 it was 8.5 points).

Regarding ways in which industry agents declare they can help to comply with the SDGs, creating communication and awareness campaigns that value sustainability and then promotion of sustainability education both stand out (as they did in 2021).

During the interviews, professionals were also asked about those brands/companies in the region that, in their opinion, stand out with their commitment to the SDGs. The most mentioned, as in the previous edition, are recognized with the new Sustainability Awards that were delivered at the Latin American Creative Economy Summit +CTG.

According to César Vacchiano, president and CEO of Scopen, “This second edition delves deeper into analysing the involvement of companies in the region in achieving sustainable development goals and how the agents that collaborate with them can, through communication campaigns, put value on sustainability and create awareness campaigns”.

“As was our initial intention, the recurrence of this report allows us to observe the evolution of the industry´s commitment to sustainability. At UCEP we are delighted to be able to help companies build better brands concerned about generating value for society and the planet, which will undoubtedly lead to a better perception of these by their consumers and users and to greater confidence and security for its stakeholders”, says Ximena Tapias, P+president of UCEP.

Read online here

#AdForumSummit: Agencies reinventing, redefining futures

The last time we were in Amsterdam for an AdForum Worldwide Summit was in 2018; it seems like a lifetime ago and, of course, was pre-pandemic or before the world changed. This year, we visited the city again, on 6–9 November 2023. It was really great to be back in this wonderful, creative, entrepreneurial melting pot, where the average number of different nationalities in agencies is greater than a minimum of 10.

We were told that 65% of all agencies are back full-time in the office and, with respect to the 16 agencies we visited, most are now 100% full-time office-based. There’s still some hybrid work but that tends to be much more on the marketer/client side, with many of the financial institutions being permanently hybrid. So, all of the offices we visited were lively, active and back to full culture — it was great to see.

We saw four ‘categories’ of agencies as identified by AdForum:

1. Heritage agencies reinventing themselves

2. Newcomers redefining the digital space

3. New networks building integrated offerings in multi-specialist collectives

4. Newcomers still capitalising on creativity as their core offering

These four categories demonstrate what’s really happening in the advertising industry currently and also provide clues to the future. They also lead to the key question: Are heritage agencies definitely part of our past?

#1. Heritage agencies

Heritage agencies are reinventing themselves. Look no further than Forsman & Bodenfor, which is positioning itself as a global creative collective. It’s aware that many people (if not most) hate advertising, so the agency professes to “tell stories people want to hear for clients with something to say”. It talks of radical collaboration, the task being the only boss, and practices boutique craft at a global scale. It also reiterated and demonstrated its maxim, “We can’t do everything but we can do anything.”

Another example we visited is UK B2B specialist agency, Gravity Global, with 600 specialists across five continents, including an office in Durban. It’s the most awarded B2B agency in the world. This is important because it very deliberately targets business awards where its clients are and in categories of clients that it wants. It doesn’t target creative awards.

Its secret sauce? FAB — the attention engine:

• Fame — what is your brand famous for?

• Admiration — what is your brand admired for?

• Belief — what value do buyers believe they are buying?

Client conflict isn’t an issue as clients want the B2B expertise and will therefore tolerate competitive brands being with the agency.

#2. Newcomers redefining the digital space

A prime example in this category, and a very refreshing agency, was Springbok x Dawn. It’s positioned as a leading brandtech agency for a sustainable future. It is purpose-led; the agency told us that consumer trust in the economy has never been lower in the Netherlands. The wealth gap in the Netherlands — much like everywhere else — is getting bigger and bigger, and brands need to play a bigger role in society. Springbok wants to reinvent marketing for 21st century brands and is “helping good brands grow big, as when big brands grow good, the world can change”.

The agency has several offices in Belgium and the Netherlands, and has partnered with South Africa’s Joe Public. It’s exciting to hear about this partnership. It showed us case studies for Eneco (green energy), Artis (Amsterdam Zoo), and Jumbo, and talked of its first client, Triodos Bank, a small niche bank which is still its client 10 years later.

#3. New networks building integrated offerings in multi-specialist collectives

iO is a new micro network, built by local campuses, with an integrated offering and offices in the Netherlands, Belgium and the Nordic countries. Started in Belgium in 2018, it now has 1 800 staff and €250m turnover. Its growth strategy is centred on building depth in every region, not on building scattered small teams around the globe.

It persuades clients “one test at a time” in order to prove that it’s capable of providing a full digital service end-to-end. Fifty percent of its clients started off on the tech side and then moved to marketing. The agency has been built through organic growth and through acquiring agencies and partners with suitable skills to complement the existing set. The M&A strategy is deliberate in that it only wants to find partners which will remain their agencies and not look for earnouts.

“Experience is everything” is iO’s mantra and it has four pillars of offerings to clients:

• Grow the love for your brand

• Shape or future-proof your business

• Develop your digital ecosystem

• Accelerate intelligent growth

The key ingredient is “grow a nose for the orchestration of digital skills”. The message is clear: If agencies want to really be end-to-end in delivery, they have to be accountable end-to-end. There’s no room to blame anyone else.

#4. Newcomers still capitalising on creativity as their core offering

Been There Done That is a fresh and disruptive new kid on the block, a blend of a holding company and Oliver-style talent pool that has offices in London and New York. It has 25 central people on board, all highly experienced thinkers who can work fast, and draws from a pool of 350 experts from all over the world in 34 markets.

It’s NOT a capability agency and doesn’t do any execution work; instead, it creates frameworks and has decoupled thinking from execution. It works in the area of strategy and has a tech platform which enables the 350 experts to connect and gain work. Some marketers who they work with keep them secret as these are strategic thinkers.

Key summit takeouts

• Agencies that can’t provide at least half of the digital services that clients need currently will be out of business within the next two years.

• Digital products and services, paid-media performance and end-to-end digital marketing can be delivered and must be fully accountable.

• B2B marketing and communication has experienced significant growth in the past few years and is destined to continue on this trajectory. However, it’s a specialist area and needs suitable specialists to deliver.

• Traditional creative agencies are reinventing themselves rapidly and creating new opportunities in the digital space, especially in paid media – “faking viral”.

• Although the newer digital-native agencies are adding on new skills and capabilities in a highly entrepreneurial way, none of them aspires to be a “holding company”.

• Out of global full-service agencies and digital multi-specialists comes the birth of the orchestrators, which are able to build ad hoc teams drawn from their own teams or wider independent partners.

You may also be interested in video clip insights from Johanna McDowell, CEO of the IAS

Here

Here

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Here

IAS Agency Credentials Gold Award for 2022 goes to Ogilvy

The Assegai Integrated Marketing Awards, in conjunction with the IAS (Independent Agency Search and Selection) is proud to announce the winner of the prestigious IAS Agency Credentials Award - Ogilvy who achieved a Gold Award.

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 last year. The award ceremony took place on 10 November 2022 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. Johanna McDowell, CEO; Nikki Munsie, business director and Tebatso Masete, 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 credentials entries 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 are committed to our partnership with DMASA and will continue to offer the Credentials Award. 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.

ADFORUM GLOBAL SUMMIT 2022 AMSTERDAM 6-9 NOV DAY 3

AdForum is a unique and hyper-focused event for agency CEOs to present their strategy and vision to the world's leading search and management consultancies. IAS is proud to be representing SA and Africa at this summit.

ADFORUM GLOBAL SUMMIT 2022 AMSTERDAM 6-9 NOV DAY 2

AdForum is a unique and hyper-focused event for agency CEOs to present their strategy and vision to the world's leading search and management consultancies. IAS is proud to be representing SA and Africa at this summit.

ADFORUM GLOBAL SUMMIT 2022 AMSTERDAM 6-9 Nov Day 1

AdForum is a unique and hyper-focused event for agency CEOs to present their strategy and vision to the world's leading search and management consultancies. IAS is proud to be representing SA and Africa at this summit.

AdForum Global Summit 2022 Amsterdam 6-9 Nov Preview

AdForum is a unique and hyper-focused event for agency CEOs to present their strategy and vision to the world's leading search and management consultancies. IAS is proud to be representing SA and Africa at this summit.

IAS, Eley Consulting partner in media assurance auditing

Maximising media effectiveness is vital for marketers and media agencies, which need to prove that budgets are optimised through the most fruitful advertising on the right platforms. Independent Agency Search & Selection Company and Eley Consulting have formed a partnership offering media assurance auditing. While both parties are pivotal in this process, the question of who is checking the measurable return on investment (ROI) is not always easily answered.

To ensure in-depth, independent media analysis, Johanna McDowell, CEO of the Independent Agency Search & Selection Company (IAS) and Scopen partner, has announced a partnership between the IAS and global media and marketing consultancy, Eley Consulting.

“In offering media assurance auditing, we review every area of a media process across all platforms to help marketers and media agencies see whether each area is aligned with best practice, while also ensuring good governance and compliance,” says McDowell.

Eley consultant Richard Edwards highlights the importance of impartiality in the auditing process: “We are not agents and our fees are fixed and entirely transparent. Not only does this enable us to give clients the assurance that their money is being well spent, it also means we can suggest a more profitable direction for the agency to take if their return on investment is lagging.”

Multi-platform audits and analysis

McDowell notes that by conducting a series of interviews and collecting media data and supporting documents from a client over a two to four week period, the IAS and Eley are able to undertake regular analysis over a number of campaigns.

“While the traditional platforms like TV and print are still a mainstay, digital is growing and changing rapidly, and often presents complications with the benchmarking of costs,” she says.

“Through regular auditing, we’re able to give media agencies and marketers the figures and direction that are the vital ingredients in delivering media effectiveness.”

Edwards adds that improvement is always a good thing, especially where it results in time and cost savings. “Our audits may not necessarily mean cheaper media in cash terms, but will certainly ensure an agency is delivering as rich a schedule as possible.”

Both Edwards and McDowell believe the partnership’s independence is key to its ability to empower clients to better understand the spectrum of advertising opportunities and take control of it, in conjunction with their media agencies.

“We see media assurance auditing as an enormous benefit to marketers, agencies and media houses, enabling the transparency in cost and compliance industry-wide that is vital to the trust that long-term relationships between all parties require,” McDowell concludes

Scopen 2023/24: South Africa's fifth wave study set for May

“The fifth wave of the AGENCY SCOPE study is on track in South Africa and Cesar Vacchiano, President and CEO of SCOPEN International, will be arriving in South Africa in February, ahead of fieldwork on the study beginning in May 2023.”

 This is the word from Johanna McDowell, SCOPEN partner and CEO of the Independent Agency Search & Selection Company (IAS), noting that the study is published every two years after in-depth meetings with the highest-level decision makers across marketing, communications and advertising, from the largest to the smallest spending marketers in South Africa.

 “In interviewing over 3000 CMOs around the world, we’re excited to see what 2023 brings, given that it signals the tail-end of the pandemic and  the so-called ‘new normal’,” she says.

 “We worked around Covid19 to be greeted by a year of the war in Ukraine, scary governments across the globe, elections in many parts of the world, gas shortages, the death of Queen Elizabeth II, the longest serving monarch in Britain, climate crisis facts and load shedding. 2022 brought much for us to digest and learn from heading into 2023/24.”

 McDowell highlights the conducting of face-to-face interviews again, after the previous fieldwork being conducted virtually. “A key objective next year will be to interview more marketing professionals from more companies.”

Ramping up AGENCY SCOPE’s evolution in SA

Another step in AGENCY SCOPE’s evolution will be interviewing new profiles of key decision makers within the participant companies, encompassing leaders in digital, technology and innovation. “These managers also hire and work with agencies and other partners,” says McDowell, “which will bring even greater depth to the value of data we collect.”

 The fieldwork will also identify and include other profiles of client companies, over and above the usual investors in communications. In this section, the study will note start-ups, the dot.com sector and digital platforms that are working with agencies more than ever before. “Numbers in this area may not be significant at this point,” she says, “but it’s certainly an area we need to be aware of to keep our finger on the pulse.”

 Lastly, among the additions to AGENCY SCOPE 2023/24, the study will amplify its sample of agency professionals interviewed, an important viewpoint to understand as they assist in determining which agencies are most attractive to work for.

 “For the first time in the South African study, AGENCY SCOPE 2020/21 included the results of the best agency to work for. The success that this data found in the market is driving a broader study for the next,” she asserts.

 Here, McDowell highlights the introduction at the tail-end of the last study of SCOPEN’s bespoke digital platform that provides a crisp, user-friendly screen to facilitate intelligent searches, broadening the scope of what can be quickly accessed from the data, categorised by choice of city, industry or even type of agency services required.

 On its release in 2021, Vacchiano said the platform enables log-in, look and learn efficiency in finding client specifics that give subscribers a better understanding of how different types of companies think and make decisions about their agencies.

 McDowell adds that going into the 2023/24 study, this data will be richer and even more valuable.

AGENCY SCOPE fieldwork calendar

Interviewers will hit the ground running in May 2023, with their tasks completed by the end of August. Analysis and processing will run through September and October, and reports will be presented from 23 October for a month.

 One-on-one meetings with the agencies will be held in February, when Vacchiano arrives in the country and spends a week talking to subscribers. “We’ll be gathering the commentary of agencies around what they feel is important to glean from the study.”

SAMPLES OBTAINED IN PAST EDITIONS

“Samples of the research from 2016, 2017, 2019 and 2021 show how this sector has grown from 191 respondents across marketing, creative and media professionals in 2016 to 465 in 2021, with Media Houses getting onboard,” says McDowell.  AGENCY SCOPE will be aiming for 650 completed interviews in 2023.

“After much turbulence, we see 2023 as the opportunity for marketers and their agencies to steady the industry and apply innovations from the recent past, while continuing to seek new ways of collaborating and growing their businesses, based on robust data,” concludes Vacchiano.

MarTech and the marketing ecosystem

MarTech holds great promise helping marketers to optimise efforts and achieve their objectives. To help marketers navigate the technology, AAR Group and The Drum published The Marketing Ecosystem Blueprint earlier this year. IAS is an associate of the AAR Group and have a well-established relationship over more than 15 years.  

Among the challenges AAR highlights for CMOs, keeping pace with digital and technological change tops the list. It shows that 67% are currently reviewing their platforms and 44% researching technology that will deal with critical skills gaps, namely digital, data and analytics.

One of the results of seeing these gaps has been a rush to buy the MarTech that will enable the marketer to retain their edge. So, how does today’s CMO keep up with these changes and who is guiding them through this high-tech maze?

What I’ve noticed is progressive agencies assisting marketers and taking some of the burden off their shoulders by finding ways to work with MarTech in combination with their own traditionally-used technology. As The Marketing Ecosystem Blueprint says,leading a marketing organisation is not about continually throwing more tools at the team, but finding the ones that bring value, while keeping the process as simple as possible.

It’s a huge task and solutions can only be found when the CMO, CFO and CTO get together outside of their silos to create real solutions. AAR notes that the hold ups in progress right now are lack of budget, poor planning, lack of skills, the need for process change and poor communications, in that order.

Unless marketer’s and their colleagues make the time to put in the long and difficult discussions and actions needed to create a product that will help overcome the gaps, the solutions will always be easily unravelled.

Ensuring digital compatibility in partnerships

Marketers generally have a picture of what their ideal software will look like, as well as an idea of what is digitally possible – but the real solutions will be found when company leaders invest their time in the framework that will provide their desired outcomes.

In working with marketers and agencies, it’s clear to me that not buying the available MarTech isn’t the answer. What will bring everyone closer to an outcome that pays dividends, however, is making the time to communicate needs and be an integral part of the build.

Already-stretched resources may have to be stretched a little further to develop the critical skills required for a proper understanding of the MarTech stack. The IAS is increasingly approached to assist both marketer and agency to understand the impact of the MarTech race on each of their organisations, and to ensure their needs in the digital arena are met alongside their need for the chemistry that brings successful campaigns.

This vital issue of technology compatibility requires a marketer taking a technology capability assessment journey. By bringing together the agency’s tech team and that of the marketer, areas of compatibility can be determined and that data used to assist in pitch processes and overall relationship management.

For real value from MarTech spend, AAR suggests a CMO really understands how their company plans to adapt capabilities and design processes before purchasing and implementing new technology.

With solid communication, skills and understanding between the teams, the chances of MarTech functioning effectively as part of their ecosystem are far greater than if marketers keep investing in the next big thing in the hopes that it is more valuable than a previous iteration.

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Marketing Ecosystem Design

AAR Group in the UK, the leading global intermediary in the marketer/agency space and long-term associate company of IAS (the Independent Agency Search & Selection company) recently published a report on The Marketing Ecosystem Blueprint. 

This report, written in conjunction with The Drum, explores how leading CMOs are approaching the challenges of effective ecosystem design, and whether there is a map for brands to follow which results in success. 

Noting the research that reveals 75% of CMOs believe current marketing processes are obstructing effectiveness and consistency, and just 13% are fully confident they have the right processes in place to achieve their goals, Johanna McDowell, CEO of the IAS and SCOPEN partner says collaboration within the marketing ecosystem will be essential to driving change needed to deliver results.

“When we consider the kind of big advertising work and campaign creation that gets done these days, it’s more than the creation of a, say, television commercial. It’s a chain of collaboration, and while the big ideas are still absolutely critical to the success of a brand, how each link in the chain gets integrated into the final sale is the all-important process,” she says.

“As a marketer, it’s vital that your agency collaborators understand how your business works, including constraints and barriers that will need to be overcome. If you’re a manufacturer of chips, then it may not be about a new packet of chips, but possibly about a new way of packing the chips or selling the packet of chips. So, the process must begin with, ‘what are the barriers that will stop that idea from working?’”

Choosing your A-team

Process change is really the new frontier now, McDowell says. “David Droga, founder of Droga5 and arguably one of the most creative people on the planet, formed a collaborative partnership by seeking out a company that could make the ideas work for clients, starting with technology and systems.

“By choosing a consultancy whose initial touchpoint with the brand is at the highest level and includes knowledge of the business, its systems and its manufacturing processes, the advertising agency adding its creative spark means there’s no limit to what can be achieved,” she asserts. “An entire business model can be built around the understanding of the systems and the barriers, and solving these to make advertising work.”

Says McDowell: “Marketing is no longer an island. It must integrate all the other disciplines within a brand’s business and then integrate the creative agency into the mix. This is why the hottest topic right now is collaboration within the marketing ecosystem.

“This collaboration is not about merely getting the various agencies working together, but includes partnerships with the client and the various extended teams across all sectors of the business, in order to produce the blueprint and ultimately, its success.”

Designing or adapting process to encourage creativity and drive performance is key. AAR says the impact of collaborative processes between internal teams becomes evident when a marketing ecosystem influences the broader operating system, in terms of revenue growth, customer sales and customer relationship management.

“Marketers have to be brave enough to implement – at every level – the solutions that will result in a successful campaign,” McDowell concludes.

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