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5 big trends in 2022 that will reshape the agency model

5 big trends in 2022 that will reshape the agency model

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The pandemic's impact on the marketing world, has undoubtedly impacted the agency world with many having to cut their teams. As 2022 approaches, agencies and CMOs are both feeling the pinch to fill the void left by the talent.From remote work to layoffs to “the great resignation,” the agency industry faces an acute staff shortage globally just when human ingenuity matters most to marketing. In 2022, Forrester predicts a CMO's marketing partner to be one equipped with new and complex constructs of talent, technology, and creativity. 

The report adds that in 2022, the pendulum will swing back towards creativity, to allow CMOs the distinction that their brands need, to attract customers. This is the catalyst for agenciesto further rearchitect their models, said Forrester's "Predictions 2022: Agencies" report. While agencies navigate formidable headwinds, including commoditisation, insourcing, and consultancies’ seizure of martech opportunities, the pandemic's impact on agency talent and its creativity places these challenges in context. 

Here are five trends that are expected to reshape the agency model. 

1. Intelligence-fueled creativity will shatter the line between “agency” and “consultancy”

A new form of creative partner will emerge from the collision of precision and persuasion marketing strategies in 2022, said Forrester. In fact, consultancies will accelerate this pursuit of creativity. An example would be Accenture Interactive when it made the decision to hire David Droga as its CEO to drive creative excellence. At the same time, traditional agencies will be aggressively pursuing data-driven capabilities. 

Meanwhile, Forrester predicts the "performance agency" label will disappear in 2022, as agencies pair creative skill sets with media or data expertise. Examples include iProspect’s merger with brand agency Vizuem. Holding companies will continue to consolidate creative, media, and digital.

In 2022, this new type of marketing partner will enable CMOs to pursue intelligent creativity and produce multidimensional creative experiences that connect the emotional, functional, and transactional in marketing strategies.

2. Only 10% of agencies will crack the code to monetise their creative and media tech

According to Forrester, 11% of the growth of technology inside agencies will automate by 2023, upgrading the definition of talent to "employees plus technology". The interdependency of the two makes  choosing an agency a "de facto" technology decision. In fact, tech fees are beginning to show up in enterprise media agency contracts. Additionally, Omnicom has also reported that its tech divisions are turning a profit. 

In 2022, Forrester predicts that:

Agencies will monetise the outputs of people working with platforms, which will change how marketing is created, executed and paid for.

The full-time equivalent (FTE) model will start to shift to the human/technology equivalent (HTE) model, permitting CMOs and agencies to produce effective, scalable, creative outputs from the appropriate combination of employees and technology.

3. Agencies will bet big on creative-driven commerce

Commerce is the "it" marketing solution, said the report. According to Forrester, agencies such as Dentsu, Omnicon, Publicis Groupe, WPP, MRM, and Horizon Media are all part of the rush to pursue eCommerce implementation, retail media and marketplace consulting. In 2022, commerce practices will embrace creative differentiation or risk falling victim to digital sameness, just as digital experiences have in the past. In fact, some agencies are already leaning into creativity for its commerce offerings.

For instance, VMLY&R’s merger with Geometry and Huge’s launch of its XSF commerce stacks represent a move towards fusing creativity in owned commerce implementations. Forrester predicts that 2022 will be exciting as agencies will roll up creative campaigns, which finally makes creativity relevant to category owners and traditionally B2B scenarios such as automotive.  


4. Agencies will outsource to “Big Tech” to fill talent void

When the pandemic hit, agencies faced a generation of talent lost, having shed 50,000 positions in 2020 and 2021, said the report. Attrition is a concern for those who remain, with 63% of agency experts reporting that they are intending to switch jobs within the next 12 months.

To fill the gap in 2022, agencies will have to further embrace automation through "Big Tech" partner programmes such as the Google Marketing Platform or Facebook Business Partners. According to the report, Google and Facebook are controlling an estimated 53% of the digital advertising market,  powered by thousands of certified companies and experts. Additionally, Forrester anticipates that the rank of agencies in 2022 will rely on partner programmes (20%), which will be in line with the agency's digital ad revenue growth. 


5. Four in 10 in-house agencies will shift from supporting cast to taking the director’s chair

The steady migration of high profile leaders such as RGA's Nick Law to Apple, Digitas' Scott Donaton to Hulu and Disney's Jean Bethany to Walmart, illustrates a shift in responsibilities and projects. Interest in insourcing shows no signs of showing, with 77% of in-house agencies reporting that their number of projects increased during the pandemic. Whereas, 75% of in-house leaders and corporate marketers reported that the capabilities of their in-house agencies expanded over the past 18 months. As in-house capabilities grow in 2022, Forrester predicts so will their influence and role in the creation of marketing.

Power up your PR and communications efforts today with MARKETING-INTERACTIVE's PR Asia Week on 1 and 2 December. Learn ways to build an evidence-based practice, up the ante on your strategies, and be head and shouldersabove your competition. Click here to register today!

Photo courtesy: 123RF 



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