The 3Ps:
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.

CMOs are under rising pressure to lead on multiple fronts, including customer experience, revenue generation, product and service innovation, and even employee experience. As the CMO’s remit grows, so does the demand for agency partners that can meet those needs. Agencies are responding by broadening their capabilities — from customer experience, to data and analytics, to business transformation — to stay relevant.

Magic Quadrant for Global
Marketing Agencies, 2019