Every Friday, The Big Smoke looks at industry news curated by MediaScope. This week we look at the 2020 economic forecast, the four traits every media agency should have and the failure of Adtech.
2020 Economic Forecast: Two decades of marketing transformation (Jack Myers – MediaVillage)
Between 2000 and 2020, total US marketing communications investments will have grown a scant 1.9% from $544.8 billion to $586.7 billion, according to a new economic report issued on 28 above-and-below-the-line media and marketing categories by MyersBizNet. During the two-decade span, above-the-line media (aka “advertising”) is projected to increase its share of total marketing investments from 28% to nearly 40%, with virtually all growth resulting from a shift of below-the-line budgets (aka “shopper marketing” or “promotion”), which are projected to decline almost 16% from $390.4 billion in 2000 to $355 billion in 2020. During that same period, media advertising budgets are projected by MyersBizNet to increase more than 50% from $154 billion to $232 billion. The MyersBizNet report includes 2020/2010/2020 data and forecasts for both legacy/linear and digital investments in 28 media and marketing categories. A separate MyersBizNet economic report projecting 2017 and 2018 marketing and media investments by category is also available to paid subscribers here.
Four traits every modern media agency executive absolutely has to have (Doug Ray – Adweek)
The demands on the chief marketing officer today are unlike any that executives have faced. From rapidly changing consumer behaviours to the emergence of new tech solutions and access to more data, the proven models of success are under attack. The responsibilities of the modern marketer have now expanded so much that the lines between C-suite jobs have blurred. And there is no shortage in the interest on this topic – in fact, there are 4.4 million Google search results for “Changing role of the CMO.” What hasn’t been written about, however, is how these same disruptions are changing the role of the modern media agency executive – and how agencies are struggling to make this change. On one side, media agencies must fully understand legacy media and how to extract the greatest value from it. And while the drumbeat of change is loud, TV will still command 40.3 percent of global ad spend in 2017. But, with digital spend forecasted to grow 13.2 percent this year, according to the Carat 2017 Adspend Report, a fundamental transformation is required. MediaPost responds to this article here…
Adtech’s massive failure (Bob Hoffman – The Ad Contrarian)
“Adtech has proven to be an utter disaster. Unless you are Google, Facebook, or WPP, adtech is a monstrosity that is stealing your money, harming your business, threatening your security, and alienating your customers. Getting rid of adtech cannot immediately solve all problems. But it can be an enormous step toward making online advertising significantly more effective, less corrupt, more secure, more respectable, and less despised by consumers, advertisers and publishers. Bob Liodice, CEO of the ANA (Association of National Advertisers) recently said ‘marketers have to take their industry back.’ I couldn’t agree more.”
The AdContrarian doesn’t hold back…
Five reasons why brands are cutting out agencies (John Winsor – LinkedIn)
“I wrote this 3 years ago for Digiday. It’s so surprising that as much as things change, the more they stay the same.
Agencies lean on their status as “valued partners” of clients, but the reality is that your brand might not need an agency anymore. There’s already a shift taking place. A recent Association of National Advertisers study which found 60% of Fortune 500 brands are thinking about replacing agency work with in-house capabilities. Building an in-house agency might be a large task, today, as many agencies cling to their old business models a whole new crop of alternatives are there to help brands both strategically and creatively.”
Good debate through the comment section…