The role that the internet is playing in insight, information and content dissemination has already made a tremendous difference for those who understand its nuances. Today companies are employing a variety of business models to make businesses focused on the web domain deliver for them, and it has become an attractive destination. Web has also enabled data to play a leading role in business, brand, consumer and customer understanding.
There is significant over-capacity in just about every industry, and so it’s inevitable that more consolidation is on the horizon. For our industry, that’s likely to take place across all stakeholders including clients, media and agencies.
‘Doing good’ is now understood to be ‘good for business’. What was once an isolated, backroom function is now front-end. No chairman and CEO should distance themselves from the company’s CSR activities; instead, they need to be aware that there are many shareholders to a business today and many are embracing the ‘sustainability agenda’ right across their business and brands.
Sir Martin Sorrell: 10 Key Trends That Will Shape Our Industry
http://www.hkstrategies-africa.com/h-k-voices?blog_post=Sir-Martin-Sorrell:-10-Key-Trends-That-Will-Shape-Our-Industry_8&category=ALL
1. Globalisation
The growth of companies not only towards the East and BRIC markets, but also to markets such as Latin America, is ongoing among multinational companies as they seek to tap the markets of the future. It’s the Decade of LatAm.
2. Global must have local emphasis
We are seeing more global emphasis and more local emphasis and, in the process, regions are being squeezed. It’s unrealistic for a global organisation to run all its marketing activity centrally, and there is a need for local marketers to do what’s right in each market.
3. Talent and training
At a time when the need for companies to acquire new skills and keep abreast of changes in communication has never been greater, it is imperative for the industry to invest in people and create human assets for its future. At present, the industry too often depends upon ‘nicking’ staff, by poaching them from other agencies. Our establishment of the WPP School of Communications and Marketing in Shanghai is an example of how we should be leading in training new talent.
4. Web and metrics
The role that the internet is playing in insight, information and content dissemination has already made a tremendous difference for those who understand its nuances. Today companies are employing a variety of business models to make businesses focused on the web domain deliver for them, and it has become an attractive destination. Web has also enabled data to play a leading role in business, brand, consumer and customer understanding.
5. Rise of the retailers and field marketing
In the changing economy, retailers become more powerful every day. The growth of Walmart, Tesco and Carrefour, and their ability to become platforms to connect with and engage consumers, is only going to further fuel the growth for the domain. Linked to this, technology is allowing trade/field marketing, previously a low-level investment, to become crucial in winning the hearts and minds of consumers at the ‘first moment of truth’.
6. Communication, internal and external
One of the biggest issues we see is the CEO being able to explain strategic changes internally, especially when there are multiple brands within a company. Companies see an increasing need to make their internal communication more effective, especially in a world where growth comes largely through mergers and acquisitions, and hence the combining of different cultures. Brands start on the inside. But we shouldn’t forget that effective communication on the outside – with all the new channels and techniques open to marketers – is still vital to win hearts and minds in a complex and ver-branded world.
7. The power of procurement
Finance, and more specifically procurement, is growing in importance in most client companies. It is understandable at one level, but clients are worrying more about pricing now and that has implications on costs. Our agencies invest significantly in a client’s business through the people we deploy on their account and the application of data and technology, and clients need to understand that.
8. Consolidation
There is significant over-capacity in just about every industry, and so it’s inevitable that more consolidation is on the horizon. For our industry, that’s likely to take place across all stakeholders including clients, media and agencies.
9. Government and third sector
One of the categories that is growing the most in advertising spends is government; as an investor, regulator and client, government will become even more important in the days to come. The third sector will be highly active with the importance of brands and new media in philanthropy, fund-raising, education all on the increase, as the world gets more competitive across boundaries.
10. Corporate social responsibility (CSR)
‘Doing good’ is now understood to be ‘good for business’. What was once an isolated, backroom function is now front-end. No chairman and CEO should distance themselves from the company’s CSR activities; instead, they need to be aware that there are many shareholders to a business today and many are embracing the ‘sustainability agenda’ right across their business and brands.
WPP
http://www.wpp.com/wpp/