bima breakfast briefing | aar thinks: 2014 opinion research

AAR Thinks: Opinion Research 2014 “Taking advantage of the upturn in confidence”

Tony Spong and Robin Charney July2014

Presenter

Presentation Notes

Tony

Introductions

Who are AAR

Who we are

How to contact us - [email protected] - 07770658073 - [email protected] – 07872603771 If you want to mention us today - @aargroup

Feel free to jump in with any questions as we go!

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mailto:[email protected]

AAR Thinks: Opinion Research 2014 Background and context The research was undertaken by Colman Parkes Research using

telephone interviews

They spoke with 200 senior management/Heads of teams from clients and agencies in the UK to give an informed, mutual view


What we’ll cover this morning

Market confidence and looking ahead

Pitches and expectations

Senior challenges and

wish lists


Time to put your best foot forward?


How are Marketers feeling?

93% say things picked up for

marketing in 2013

86% say things have picked up for my brand in

2013

74% say things will continue to

pick up for marketing in 2014

Focussing on clients’ overall expectations



90% are more confident in their team’s ability to

perform than 2013

61% believe they have a better

marketing structure in place

for 2014

Focussing on clients’ view on their team and structure



78% agree that marketing is

getting better at demonstrating ROI

to the board

68% say their remit is growing to

be genuinely ‘marketing’ v just

comms

Focussing on clients’ view of their remit


What are their top challenges?

63% say increase in competition

55% say understanding

consumers’ requirements

53% say low or changing budgets


Three code question

Q.20. What are the three biggest challenges that you face in marketing your brands?

Base: Total Respondents Clients Only (100)

6%

7%

11%

12%

16%

18%

19%

38%

53%

55%

63%

No time or budget to test new ideas

Understanding emerging channels

Analysing data and information from multiple sources

Getting senior stakeholder buy-in

Understanding which channels work and which…

Working with procurement to an agreed agenda

Managing all agencies to one agenda

Getting the best ideas out of agencies

Low budgets/changing budgets

Understanding consumers' requirements

Increase in competition

Client Side

Biggest Challenges Currently Facing Clients Total Results

Presenter

Presentation Notes

Question – does this jibe with what you see in your clients

And the agencies top challenges are exactly the same

72% claim more competition

49% downward pressure on

margins

3rd was challenge of managing talent -

45% recruiting new and 40% retaining

experience

Interestingly – only 6% state lack of

new biz – and they could tick multiple

options


Presenter

Presentation Notes

Does this look like your top challenges?

Three code question

Q.17a. What are the three biggest challenges your agency is currently facing?

Base: Total Respondents Agencies Only (100)

0%

1%

6%

9%

11%

11%

13%

17%

19%

40%

45%

49%

72%

Unrealistic commercial agreements

Increased workload compared to scope of work

Lack of new business

Keeping up with change/developments in the industry

Resourcing new business

Cost/frequency of incumbent pitching

Increases in operational costs

Recruiting senior people

Recruiting specialist skills

Retaining experienced staff

Recruiting talent

Pressure on profit margins

Increase in competition

Agency Side

Biggest Challenges Currently Facing Agencies Total Results

The budget perspective is very encouraging

Only 8% of Clients state their budget for 2014 is less than in 2013


60%

32%

8%

0%

More than 2013 Same as in 2013 Less than 2013 Don’t know

For the 60% of clients who are spending more

It’s a mixed plan but, interestingly, 80% will be adding capability and 70% capacity, which sounds positive for new and organic business development


42%

46%

66%

70%

74%

80%

Undertake more agency-type work in-house

Make structural changes that will enable us tobetter manage the agency roster

Switch to more project-based agreements

Add additional capacity to my existing agencyroster

Switch to more retained-based agreements

Add additional capability to my existing agencyroster

For those looking to spend the same or less A different slant, with the opportunity to demonstrate the value of tenure and efficiency for existing relationships


40%

48%

58%

62%

68%

70%

72%

75%

Consolidate my existing agency roster

Undertake more agency-type work in-house

Reduce size of the agency roster

Negotiate agency fees

Extend contracts with existing agencies ratherthan going to the market

Switch to more retained-based agreements

Increase my agencies' accountability for ROI

Switch to more project-based agreements

Has any of this hit the market yet?

This is the agency view of what they are seeing so far


60%

32%

8%

0%

More work, samescope

More work,extended scope

Neither Don’t know

Presenter

Presentation Notes

What do you think?

Although, interestingly, agency competition is the “client”

“It’s how we want to evolve as a company, to have a

more centralised approach to our work. Also it keeps all our ideas in one place” - Client

view

“We are looking to develop our own talent and do new things internally while doing more traditional work outside with agencies” – Client view

“Clients spend can be quite high, so I guess they see significant ROI in the long

run by investing more internally” – Agency view

“Clients are spending more for sure but they are keeping

some of it in-house from a strategic point of view and

we are just getting the tactical stuff” – Agency view

These were some of the quotes when probed further


Presenter

Presentation Notes

Are you seeing this?

More new business opportunities in 2014/15?

The research says ‘yes’… We asked clients how many new agencies they were expecting to add to their roster in 2014/15


7%

26%

50%

14%

3% 0%

None One Two Three Four Five or more

Converting to Win – Need to know

From the clients’ perspective, these are the main ways agencies let themselves down during the pitch


58%

60%

62%

62%

68%

72%

75%

80%

Wasting time playing the entire brief back to us

Missing the brief entirely

Ideas poorly thought through

Senior people talking too much

Lack of enthusiasm

Asking the wrong questions

Poorly presented ideas

Not fully understanding mychallenge/opportunity

Converting to Win – Need to know

From the clients’ perspective, these are the main ways agencies let themselves down during the pitch


41%

43%

48%

49%

51%

55%

57%

58%

Asking no questions

Lack of demonstrated interestin our existing agency roster

Inability to answer ourquestions

Not bringing the core team tothe pitch

Poor time management

Missing key sections of thebrief

Using obvious templates nottailored to us

Unable to convert insight intothinking/ideas

And finally – the wish list?

29% of clients would like to see more innovation from agencies

16% of clients would like to see more flexibility

13% of clients would like to see

better ideas

52% of agencies would like clients to be more open minded to ideas

21% would like clients to

respond faster to proposals

13% would like clients to be

better at strategic planning

We asked clients and agencies what the one thing they wanted from each other was and grouped the replies


Final thoughts?

What’s enlightening or surprising? What confirmed your thoughts? Next steps?


Thank you for coming

All feedback gratefully received

bima breakfast briefing | aar thinks: 2014 opinion research

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