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The year ahead: BBDO’s Dani Richa on advertising agencies in 2016

A year of more. One more day, more troubles, more uncertainties, more challenges but there’s more. More resilience, more determination, and a whole lot more opportunities. It will be tough. Tough on the economy and on the Middle East and North Africa. On our industry and our clients. On our people and our work. But it’s a year for those who are tougher and bolder.

To predict our region’s 2016, one has to look at it through all the lenses that matter to the advertising industry and, to begin with, my first prediction is that many will read only the headlines.

ECONOMY: SLOWER AND BUMPIER

Let’s leave the financial analysis to the economists. As a communications profes- sional, I can predict that advertising expenditure will continue to drop in the same proportions as it did in the previous year. Having said that, we will see growth in digital channels and shopper market- ing, and in percentages well higher than the global benchmark. The recovery is so tightly linked to the political climate that we will see no improvement until a political breakthrough comes.

CONSUMERS: TECHIER AND WISER
We’ve been talking a lot about the growth of e-commerce and that will continue exponentially. In 2016, we will see more and more social shopping and social commerce. More regional brands and retailers will play catch-up to serve this clientele who will become wiser in knowing and comparing what they want, and how much they are willing to pay for it – as they become more and more price sensitive in these trying times.

GENERATION Z: YOUNGER AND EDGIER
Here they come. Born between the mid to late 1990s and 2010. Unlike their pre- decessors, Gen Y, who don’t remember a world without internet, Gen Z don’t comprehend a world without ease of access anywhere, anytime. They are well- informed, they have a low attention span and they want to succeed fast. In 2016, they will dictate what’s in and what’s not.

CLIENTS: THRIFTIER AND BRAVER
In a downturn economy, every dollar spent will be scrutinised and will need to work harder. Clients will be more reluctant to throw money towards media and will invest even more behind work that works in the right channels, at the right moment, to the right people.

STRUCTURES: FLATTER AND FRESHER

Financial pressure will accelerate what advertising agencies were thinking of implementing. A leaner structure where every player is a specialist, adding value to the process in his or her area of expertise. Thereby eliminating unnecessary layers of duplication by creating a healthier balance between senior consultancy and fresh blood, especially expanding their skill-sets to reflect the industry’s changing dynam- ics in the area of tech and analytics. In essence – less people, more skills.

COMPETITION: FEISTIER AND HUNGRIER

This year will see the survival of the fit- test. Unfortunately, the less established players will resort to desperate measures such as making offers they can’t honour, promises they cant keep and discount- ing beyond logic. These destructive measures will end up hurting them, their clients and the industry at large.

PITCHES: FEWER AND BIGGER

In times like this, we will witness less launches, less new products and less new entrants to the market. We will also see less pitches, as clients will value trusted relationships with proven track records and agencies will work harder to safeguard their bread and butter. However, big pro- curement empowered clients will shop for a consolidated offering, resulting in big account movements.

CONTENT: CHEAPER AND FASTER

With all this talk about content and the rise of programmatic, agencies will write an entire brand strategy in a six-second video and serve the same message in many different variations to different consumers. To do that, the work will be created in a faster mode and more of it will be produced effectively in the in-house kitchen.

DATA: SHARPER AND DEEPER

Insights have always inspired creativity but what we are seeing today is real-time data fuelling creativity. Insights gave us the ability to create compelling commu- nication, data gives us the ability to predictconsumer’sneedsandwants.The use of such cognitive intelligence is no longer reserved for the big players, thanks to the many options out there. Advertising agencies will use this data to create better more relevant pieces of communication and in the process reclaim its channel planning capabilities.

TOOLS: NIMBLER AND SMARTER

Alongside the popular digital and social platforms in our region, we will see a rise in the usage of nimbler ones such as Snapchat, Periscope and the like as consumers become more spontaneous and want to express their feelings and experiences on the fly. We will adapt and become more genuine. That means marketers will relinquish control, rely less on planned communication and embrace imperfections. This year we will also see smarter use of tech such as virtual reality, no more considered a gimmick, but as a form of advertising that allows consumers to experience brands and services in their true form.

MEDIA: EASIER AND HARDER

On one the hand, technology is making it easier to plan and reach the right con- sumer at the right time through programmatic. On the other, technology is allowing consumers to block advertis- ing. In the MENA region, 27 per cent of online users have downloaded an ad- blocker app and it will continue to grow in line with the global numbers of one billion mobile and desktop devices with ad-blocking software installed. We will also see creative agencies play a key role in programmatic as they are the best equipped to customise and optimise messages in their kitchen and in real time.

In the end, we may not be in control of the economy but we can certainly impact the way it affects us and the brands we are entrusted with. 2016. Game On.

Dani Richa is chairman and CEO of BBDO Middle East, Africa and Pakistan

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