People, Processes, Procurement
This report is essentially all about people, processes and procurement – it’s about what a world-class creative organisation might look like, how it can retain a new generation of multi-talented creatives, and how it can work as a client partner that’s able to confidently price big ideas.
It’s no surprise that the traditional agency-era is over: according to Gartner’s CMO Spend Survey 2019-2020, the marketing budget allocation to agency resources is steadily decreasing. It was 25% in 2017 and 22% in 2019. 34% of marketers who contributed to the WARC Marketer’s Toolkit said they will bring more creative services in-house in 2020.
So, what needs to change?
In-house agencies are a growing entrant group into Cannes Lions – with idea creation entries from brands up 10.5% in 2019 from 2018. Apple and Spotify are notable in-house winners of Lions.
When we spoke with agency leaders for this report, they talked about the changing nature of client briefs. We heard how agencies MUST be end-to-end to respond to the digital transformation and reinvention projects that are coming in thick and fast. As one agency leader summarised it:
“We can’t evolve into the agency we want to be – the agency that represents the modern capabilities that our clients require (data, analytics, innovation, experience design, total business transformation) without the very best talent – and for that, we must create a world-class agency brand that attracts them. For this we need the very best talent… and so on. It’s a virtuous circle.”
For this report, we take a preliminary look at what needs to change. As we’ve said, everything starts from the inside out – an observation you’ll see repeated throughout the report.