With so many content formats, various platforms, ever-changing consumer demands and behavior patterns, the advertising industry is witnessing a massive revolution. As you ponder over what the next disruption in the industry would look like, we decode some expectations that advertisers and agencies have from each other in 2018.
First up; Let’s read on to know what advertisers can expect from agencies:
If you think agencies are full of creative heads, then you can’t be more wrong. By constantly monitoring performances and deploying data to attain insights about user behavior, advertising agencies are becoming more and more aware of the numbers and statistics nowadays. So, don’t be surprised if your agency walks in with pie-charts, showing your ad performance and consumer metrics! They use this data to improve your brand communication at every step of the way.
Advertising industry can have a break-through with VR technology as it transcends you to a whole new world even when you aren’t present there and thus, can be used by advertisers to provide the actual look and feel of the product in their ads. VR can make a huge difference for such industries that lose out on customers because of their averseness to buy the product without touching or examining it. E-commerce is one such industry which is losing out on some customers because of their proclivity to try and test the product . A study by Ericsson Consumer Lab, states that 64% of their respondents from their global participants, said that they were interested in VR to see things in real size and form when shopping online.
Artificial Intelligence (AI) and Machine Learning (ML) are taking advertising to new levels. Machine learning detects consumers’ activities and their preferences, as well as viewership patterns of various advertising content as well. AI and ML are already garnering a lot of attention because of their accurate and selective targeting of ads. From Amazon’s product recommendations to Spotify’s apt assortment of playlists for you, AI and ML are making advertising more consumer-oriented.
According to a report by Statista, 200 million people will be using mobile AR worldwide by 2020. Industry connoisseurs who advocate AR over VR consider AR to be a more immersive technology compared to VR and hence, it’s believed to be more effective when it comes to advertising. CEO of Apple, Tim Cook, says, “I’m excited about Augmented Reality because unlike Virtual Reality which closes the world out, AR allows individuals to be present in the world but hopefully allows an improvement on what’s happening presently”. Hence, it shouldn’t be a alien scene for you to see agencies coming up with various digital ideas that involves AR.
The face of content has changed drastically over the years and has evolved into various formats and types. From user-generated content, experiential content to native content, it’s not just the format that has changed but also the source of the content. Online furniture store, Wayfair and online streaming platform, Netflix both have instagram campaigns that post user-experiences on their brand pages. IBM, on the other hand, is playing by the most important card of advertising – emotional connect. IBM’s online campaign shows its employees and life in IBM, giving the brand a more humane aspect. This acts like an indirect advertising strategy showcasing how well IBM understands its people’s needs.
Turning the tables, here’s what agencies can expect from advertisers:
There are several devices which connect us practically to the whole world via the internet. From smart tabs to smartwatches, you name it and we have it! Internet of Things is changing the way content is being presented. Ads are programmed to suit the viewership it receives on specific channels and will vary depending on who’s watching and where it is being watched. Agencies are trying their best to harness the power of IoT. British Airways was one of the first companies to integrate IoT in their ads. An interactive billboard by British Airways in London was a big hit and definitely made news for their innovative approach to advertising.
As Alexei Orlov, Former Global CEO of Rapp states, “Clients want to be involved in creating the end campaign; they no longer dump everything on agencies. They are also willing to employ other critical stakeholders such as consumers. Whether it’s planning designs or discussing the copy, clients want to contribute in every way they can.” Co-creation is the new norm as clients and agencies have to work in tandem to survive the disruptive trends and arduous competition.
Most of the advertisers are aware of multi-channel branding and the trends on each of these platforms. Creative differences between advertising and agencies is not an uncommon phenomenon. Today, clients/advertisers are willing to pitch in to give insights about their market and consumers. In recent years, the collaborative style of working has been a major shift in the advertising world. BBDO has been designing all the GE’s marketing campaigns for over a century now. While spilling beans about this successful partnership, Linda Boff, Chief Marketing Officer of GE, says “BBDO and GE have a super open, very communicative relationship”.
The likes of Booking.com, a hotel e-commerce site, have moved most of their advertising to in-house resources. Consulting giants such as Deloitte and Accenture have also started investing in the ad world. Pepsi and other global brands have started following suit. If your client or advertiser walks with an in-house agency of his own, don’t let it take you by surprise! This may appear like a downfall for the advertising industry, but you never know what new offerings could be unearthed by agencies that will help them create their own niche, thus revolutionizing the advertising world.
The advertising industry is in a constant stage of flux. Add to that the ever changing technology, platforms and mediums – there’s so much happening all at once. One can keep up with the changing consumer demands and trends by joining hands with each other and adding value to each other. A vibrant and healthy client-agency relationship goes a long way in creating a great brand image for the client plus a strong work portfolio for the agency. It’s the synergy between the two that will result into campaigns, that will not only gain consumers’ attention but will also touch their hearts.