Being proven right isn't always a pleasure. A third consecutive IPA Bellwether wobble. Only a fifth of companies report upward online spend. The signals have been around for a while, though. Pitches that used to take two months are taking five months. More talk about efficiency than effectiveness. Incidentally, US ad spending growth forecasts have been halved this week, even though there is optimism in global markets like Argentina, China and Russia. I have always carped on about how digital agencies need to step up their management skills to be able to handle global problems for Clients. I also believe in how an understanding of technology can bring significant competitive advantage. More of our briefs are about building excitement around a brand's value proposition in the context of lower cost delivery of the brand to the consumer, in every way possible.
As McKinsey will tell you, technology is intrinsic to every lower cost delivery proposal in every FT100 company. All agencies like to talk about the first thing (especially with some digital seasoning sprinkled over it). Not many can talk about the second, which requires some understanding of business and technology and without which the 'excitement bit' can become rather fruitless and costly. Few can do both. The next two years will be an interesting filter. Campaign recently referenced the 't-junction' for digital agencies, where they choose to become 'production' companies or 'branding' agencies. It's not quite as simple as that, as good business people tend to be pragmatic rather than dogmatic, but in our sector it is increasingly about whether you can deliver the brand at a lower cost to the consumer. This demands an ability to help brands stand for something, and help consumers (who also, btw, stand for something too) get their brand.
Alastair Duncan
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