In this opinion piece from Jon Stubley, VP ANZ of visual marketing agency GumGum, gives us his glimpse into the agency-land crystal ball to suss out what the future looks like.
The rapid advances in technology and data capabilities of the last few years have transformed the way brands are structuring their marketing departments.
The proliferation of channels and the rise of data and technologically driven marketing mean that brands are now hiring talent who are adept at technology, programmatic advertising, content production, channel analytics, plus a host of other skills.
Teams are multi-disciplined (the days of the silo are pretty much over) and today’s CMO has to have at least a working knowledge of all areas of the marketing ecosystem in order to move swiftly and in real time when both opportunities and problems present themselves.
All this begs the question – is there still a role for media agency and technology partners and how will those relationships change as brands bring specialised skills in house?
To find out my own company, with Brand Innovators, surveyed 240 digital marketers at Fortune 500 companies in the U.S. in February and March of this year. Whilst all the marketers were US-based only, the results reflect conversations that we are having in market here in Australia with brands and agencies of all sizes.
And this is what was learned:
Partnerships won’t go away
For agencies and vendors worried about long-term viability, we have good news to report: 33 per cent of marketers anticipate an expanded role for their agencies and vendors over time. The reason for greater reliance on vendors?
Many of the marketers (43 per cent) predict an uptick in work for organizations that have been slow to adopt digital technology, so there is a need to catch up. A network of outside experts will help these digital laggards do just that.
Around 20 per cent predict they won’t make any significant changes in the way they work with vendors. But there will be some pain for vendors: 31 per cent of marketers expect a diminished role for outside vendors, although only 15 per cent say that will affect their relationships with agencies.
In-house vs. outsourcing: a constant discussion
One in three marketers say their organisations are actively re-evaluating how to work with partners. Clearly, marketers feel that some functions are best left to outside exports, while others can be brought in-house to reduce expenses.
“We are always evaluating what we should take in-house and what we should outsource to trusted partners, and over the years this has evolved a lot,” noted a VP at a well-known sports brand.
“We are much more likely today to take on functions in-house than outsource, especially if they are tactical, bread-and-butter functions like content generation or SEM.”
How to be a good partner
Although we didn’t ask our survey takers what it would take for them to continue relationships with their vendors, it’s not hard to read the writing on the walls. Brands clearly want to bring more bread-and-butter functions in-house, so vendors who help them do that will strengthen their relationships with the brands.
In other words, vendors that engage in knowledge transfer will be perceived as helpful and trusted advisors.
Good news/bad news
The good news for agencies and vendors though is that the pace of technological change isn’t slowing down. This means that brands will always need help in keeping up with their customers and prospects as consumers are quick to adopt new channels and devices.
Consequently, the best way to secure a place at the table going forward is by helping brands to adapt to what is new.
The bad news for some (although I believe a win/win as it will weed out the – dare I say it – snake oil salesmen) is that brands are much better placed to take on previously outsourced capabilities and are building their expert in-house knowledge faster than ever before so there will be no room for anyone that provides poor and indemonstrable value.
Just good enough is no longer enough. In our brave new world only those who provide exceptional and demonstrable value will prosper.
The entire report – Building the Marketing Organisation of the Future – can be found here.
Following on from the appointment of Paul Evans as its first Global CEO, Adgile Media has set about expanding and developing its talent base, in order to support and drive growth within the Australian market. Stu Carr joins as Adgile’s new Director of Customer Insights, where he will support clients with their data and analytics […]
Amaysim has debuted the official music video for the song at the centre of their new campaign, Love Machine, performed by former Gang of Youths lead guitarist, Joji Malani. The music video, produced by creative agency, 72andSunny, builds on the success of amaysim’s recently launched Little Sim, Big Love brand platform and tells a tongue in cheek […]
Partners of Val Morgan Digital, Fandom, the largest entertainment fan site in the world, have this month teamed up with mega brand, adidas to build hype around the release of their new X9000 range. The multi-faceted campaign included a mix of written & video content that tapped into the core pillars of style, tech, and […]
Brand experience and innovation company Akelo has today announced the latest senior addition to its growing team, appointing highly experienced marketer Anne Ngo as martech and customer strategy director to lead and grow the practice. Ngo will help Akcelo clients grow their customer marketing and martech maturity by leveraging her deep understanding of the challenges […]
7-Eleven has entered strategic partnerships with Adobe and Microsoft in what is set to accelerate the company’s ambitious digital strategy. With transformation works well underway, 7-Eleven’s digital plans signal a significant step forward for Australia’s leading convenience retailer. 7-Eleven General Manager of Strategy and Technology Stephen Eyears (pictured) said the company sought to deliver more agile innovation in order to meet customer needs across […]
New Zealand’s Anchor Dairy has switched strategies for its 2020 Christmas campaign, with the company this year drawing attention to the need to give during the festive season. The Fonterra-owned company is encouraging Kiwis to fundraise for the New Zealand Food Network, following the release of research that showed one in five people risk going […]
The ‘It’s Your Energy’ campaign, delivered via Icon Agency, encourages Victorians to take advantage of recent energy reforms and ensure they’re getting the best deal possible. Essential Services Commission, the regulatory body for Victorian energy and gas, water, local government, and transport sectors, has engaged Icon Agency to develop an integrated communications campaign to help […]
In the insurance company’s latest campaign, NRMA Sleeper depicts a road trip, like any other, except everyone in the car is asleep, even the driver. Yet they arrive unscathed. According to production company FINCH, which is behind the work, the spot dreams up a world where cars drive themselves to remind us that until they […]
Children’s cancer charity, Bailey’s Day, has teamed up with full-service international communications agency Noisy Beast to launch ‘The Big-Hearted Bear’ campaign, voiced by Channel 9’s Livinia Nixon. Each year, Bailey’s Day hosts a charity golf day, auction and luncheon to raise funds for children’s cancer research at Monash Children’s Hospital, but with the COVID-19 pandemic, […]