Marketing Trends Report

Marketing Trends Report Marketing Services Industry Insights January 2018

agencyspotter.com/trends-report Marketing Trends Report January 2018

© 2013 - 2018 Agency Spotter

Marketing Trends Report January 2018 Welcome to our fourth year of Agency Spotter’s Marketing Trends Report. The marketing services landscape continues to grow in size and complexity. At Agency Spotter, we are focused on bringing transparency to the marketing and advertising services industry. We have heard the call for alignment and transparency from CMOs and other executives around the world over the last 18 months. This report builds on trends in service seasonality and continues to show the rise in popularity of some services over the last four years along with the stability of others. All service areas on Agency Spotter have grown, but some continue to capture a much larger share of attention year over year. Throughout 2017, we helped a quarter of a million marketers and subject matter experts at companies begin their agency searches. Agencies on the platform had more than 3.1 million views and our inventory of verified client reviews grew by more than 50%. It is our goal at Agency Spotter to continually innovate to meet the demands of the industry across 40 service areas, which includes the recent addition of AR VR, Aﬃliate Marketing, Multicultural Marketing, and Marketing Automation. In the last twelve months, we launched 8 Top Agency Reports which are published throughout the year and created 103 Brand Pages to showcase agencies working for some of the largest companies on the planet whose employees use our platform, including Google, Nike, Adidas, Microsoft, Coca-Cola, Amazon, Verizon, Dell, and Disney. I hope that 2018 is an amazing year for each of you and your companies. If you are focused on marketing alignment and transparency, I would love to speak with you about how we can help bring partner data and work to life for you. Sincerely, Brian Regienczuk CEO and Co-Founder, Agency Spotter Inc.

Marketing Trends Report January 2018


Inside this report Letter from the CEO

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Table of Contents

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Introduction to Agency Spotter

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1. Marketing Spend

7

2. Demographics

12

3. 2017 Marketing Trends

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4. Seasonal Marketing Trends

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5. Multi-year Marketing Trends

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6. Finding and Building Partnerships

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© 2013 - 2018 Agency Spotter 3

Agency Spotter is helping companies of all sizes



Agency Spotter’s mission To bring transparency to the marketing and advertising services industry, saving professionals time and money in the search, selection and management of partners Register for unlimited partner search capabilities at agencyspotter.com Why should I care? Agency Spotter is a trusted independent partner. We verify client reviews and make it easy to navigate the increasingly complex marketing landscape. Marketing Trends Report January 2018


More than 14,300 agencies are on Agency Spotter



1. Marketing Spend “We are now poring over every agency contract for full transparency…” –Marc Pritchard, Chief Brand Officer, P&G



Brands are searching for more agencies, more frequently Summary: • CMOs and Agencies of Record (AORs) change about every 3 years

• More budget is shifting to project-based work • Companies have more AOR relationships than ever (think: advertising, media, PR, digital, mobile, social media, CRM, branding, experiential)



CMO and AOR Tenure Tied Together Both CMOs and Agencies of Record relationships last about 3 years Average CMO Tenure

Over the last few years, the average duration of the Chief Marketing Officer (CMO) 1 and an Agency of Record (AOR) 2, 3 tenure has started to stabilize at around the three year mark.

4

Years

3.75

3.6

3.5

2.9

2

1.9

2006

2009

2012

2015

While the AOR of the past is dead, the average AOR relationship tenure will show an increase by 2020.

2016

Average AOR Tenure In the past, traditional AOR relationships lasted more than seven years on average. As marketing departments became more sophisticated and became more accountable to the C-suite, more pressure has been put on agency partnerships.

8

Years

7.2 5.3

4

1984

1997

2.8

3.2

2015

2016

1

CMO Tenure Study, Spencer Stuart, March 2017 of Record Tenure, The Bedford Group, 2015 3 R3, 2016 2 Agency



Where is creative revenue going? Revenue is down 38% on large creative deals 1 Average Revenue of US Creative Wins (USD millions) 4

$3.41m

While consultants like R3 have suggested that budgets are going to in-house talent, Agency Spotter’s data shows an increase in project-based spending.

$2.95m

Agency of Record and Retainer deals will continue to see lower overall size.

$2.11m 2

While some companies are bringing more expertise in-house, all companies seem to be increasing the volume of project-based engagements. 2015 1

2016

2017 YTD

Ad Industry New Business Report, R3, October 2017



Project-based revenue makes up more of agency’s bottom line than AOR Average Retainer/AOR fees decline as Project Based fees are on the rise 100%

95% 75%

54% 50%

46% 25%

5% 0%

1984

Percent Retainer Fees Project Based Fees

1

Ad Industry New Business Report, R3, October 2017

2

Datacenter, AdAge, 2016


2015

For agencies who are earning less from each AOR relationship and typically have tighter margins on each, the answer seems to be augment with project based work.

Marketers need a better picture of who is doing what across the enterprise if they are serious about alignment and transparency. For marketers, how they define their AOR relationships and manage the growth of project based work both by their AORs and by other agencies is becoming more and more important in the quest for transparency and alignment.


2. Demographics “Find partners who are truly partners… I want to know my partner can bring me savings and new ideas.” –Mike Oringer, SVP, Stoli Group USA



Demographics, decision makers, and geography breakdown Summary: • Almost a quarter million professionals used Agency Spotter in 2017

• 29% were Director level or higher • USA and UK were top two countries searching for partners, but searches from across Europe and Asia also grew significantly

• New York, Chicago, London, Atlanta, and Los Angeles were the top five cities searching for partners



Demographics Today’s pool of decision makers is more diverse than ever, and they need an agency search tool that is just as dynamic. Gender

Age Range

B2C vs B2B 2

37.7%

Female 46%

19.0%

Male 54%

21.7%

B2B 37%

13.4% 6.1% 18 - 24 25 - 34 35 - 44 45-54

55-64

2.1% 65+

This year, mobile use rose significantly, more women used Agency Spotter, and the user age range skewed slightly older. 1

Agency Spotter Marketing Trends Report, January 2018 Survey data by Agency Spotter on decision makers and market focus, January 2017 Note: Age ranges align with Google’s research showing B2B decision makers are younger than ever: https://www.thinkwithgoogle.com/ articles/the-changing-face-b2b-marketing.html 2



B2C 63%

All Types Of Decision Makers Searching 61% of decision makers on Agency Spotter say they are ready to hire a partner within 3 months. 29% Director level or higher. Seniority Level 1

Decision Makers Ready To Hire 2

CMO/CEO/C-Level Directors 13% 16% VP/SVPs 3%

In 2 - 3 months 30%

Within a month 31%

Managers 13%

Other Staﬀ 55% 1 2

In 4+ months 39%

Agency Spotter Marketing Trends Report, January 2018 Survey data by Agency Spotter on decision makers and market focus, January 2017



More People Searching Worldwide Almost a quarter million professionals from more than 160 countries used Agency Spotter in 2017 Oceania 1.5% Asia 10.9%

Europe 13.9%

Americas 71.9%

1

Africa 1.4%

Top 15 Countries 1. 2. 3. 4. 5. 6. 7. 8.

USA UK India Canada Australia Philippines Germany France

Agency Spotter Marketing Trends Report, January 2018



9. Netherlands 10. Ukraine 11. Spain 12. South Africa 13. Italy 14. Singapore 15. Mexico

Top 40 Cities Searching For Agencies 13 different countries represented across the Americas, Europe, Asia, the Middle East, and Australia

1

1. New York 2. Chicago 3. London (UK) 4. Atlanta 5. Los Angeles

11. Austin 12. San Jose 13. Portland 14. San Diego 15. Seattle

21. Charlotte 22. Bengaluru (IN) 23. Vancouver (CA) 24. Melbourne (AU) 25. Phoenix

31. Hong Kong (CN) 32. Columbus 33. Singapore (SG) 34. Amsterdam (NL) 35. Istanbul (TR)

6. San Francisco 7. Boston 8. Washington DC 9. Toronto (CA) 10. Dallas

16. Minneapolis 17. Sydney (AU) 18. Houston 19. Philadelphia 20. Denver

26. Montreal (CA) 27. Mumbai (IN) 28. Paris (FR) 29. Dubai (AE) 30. Miami

36. New Delhi (IN) 37. Quezon City (PH) 38. Orlando 39. Hyderabad (IN) 40. Cincinnati




Top Agency Searches In Europe European usage grew to 36% overall in 2017 Top 15 European Countries UK, Germany, France, Netherlands, Ukraine, Spain, Italy, Poland, Russia, Sweden, Romania, Serbia, Ireland, Switzerland, Belgium

Southern Europe 15.3%

Northern Europe 48%

Eastern Europe 16.4%

Top 25 European Cities 1. London, United Kingdom 2. Paris, France 3. Amsterdam, Netherlands 4. Kiev, Ukraine 5. Dublin, Ireland 6. Berlin, Germany 7. Samara, Russia 8. Madrid, Spain 9. Warsaw, Poland 10. Barcelona, Spain 11. Stockholm, Sweden 12. Bristol, United Kingdom 13. Milan, Italy 1

14. Belgrade, Serbia 15. Lviv, Ukraine 16. Bucharest, Hungary 17. Copenhagen, Norway 18. Kharkiv, Ukraine 19. Leeds, United Kingdom 20. Lisbon, Portugal 21. Zagreb, Croatia 22. Budapest, Hugary 23. Sofia, Bulgaria 24. Skopje, Macedonia 25. Munich, Germany

Western Europe 20.2%




3. 2017 Marketing Trends “Only by being simple and clear will people understand our strategy and act on it.” –Clayton Rubensaal, SVP Global Brand Management, American Express



Marketing Services search trends align with large company channel spend Summary: • Advertising is the number 1 most searched service

• The top 5 searched services remained the same • Seasonality played a significant role in searches for Email Marketing, E-Commerce, User Experience Design, and Media Planning/Strategy.



Top 25 Most Searched Services Of 2017 With more searches than ever, every service area grew this year 1. Advertising 2. Direct Marketing 3. Web 4. Digital Strategy 5. Social Media 6. Branding 6. Marketing Strategy 7. Search SEO/PPC 8. Mobile 9. Innovation 10. E-Commerce 11. Email Marketing 12. Content Marketing 13. Media Planning + Strategy 14. Public Relations 15. Inbound Marketing 16. Influencer Marketing 17. Healthcare Marketing 18. Design Strategy 19. User Experience Design 20. Multicultural Marketing 21. Experiential Marketing 22. Word of Mouth (WOMM) 23. Gaming 24. CRM Automation 25. Graphic Communication Other 14 Services 4%

1

8%




12%

16%

20%

Large Company Multichannel Spend Percentage of marketing budget allocated to these categories aligns roughly with Top 25 most searched services Marketing Spend Diversifies 5% 9% 26% 9%

10% 11% 12%

Traditional media advertising (TV, Print, OOH) Search advertising Programmatic Social Website and e-commerce Brand publishing and other content marketing Digital video Influencer marketing and sponsorship costs Environment

8% 10%

1

50 Marketing Charts, Percolate, 2017



Top 25 Most Searched Services YoY 2016

vs

1. Advertising 2. Web 3. Direct Marketing 4. Digital Strategy 5. Social Media 6. Marketing Strategy 7. Content Marketing 8. Branding 9. Mobile 10. Media Planning + Strategy 11. E-Commerce 12. Innovation 13. Inbound Marketing 14. Experiential Marketing 15. Public Relations 16. User Experience Design 17. Search SEO / PPC 18. Design Strategy 19. Email Marketing 20. CRM Automation 21. Graphic/Communication Design 22. Data Analytics 23. Motion Video 24. Promotional Marketing 25. Events Marketing Marketing Trends Report January 2018

2017 1. Advertising 2. Direct Marketing 3. Web 4. Digital Strategy 5. Social Media 6. Branding + Marketing Strategy (Tie) 7. Search SEO/PPC 8. Mobile 9. Innovation 10. E-Commerce 11. Email Marketing 12. Content Marketing 13. Media Planning + Strategy 14. Public Relations 15. Inbound Marketing 16. Influencer Marketing 17. Healthcare Marketing 18. Design Strategy 19. User Experience Design 20. Multicultural Marketing 21. Experiential Marketing 22. Word of Mouth (WOMM) 23. Gaming 24. CRM Automation 25. Graphic/Communication Design


Lots Of Movement in 2017 All services had double digit growth in number of searches this year Highest Climbs Direct Marketing, Branding, Search, Innovation, Email, Influencer Marketing, Healthcare Marketing, Multicultural Marketing, Word of Mouth (WOMM), Gaming

Biggest Falls Web, Media Planning + Strategy, Content Marketing, Inbound Marketing, User Experience Design, Experiential Marketing, CRM Automation, Graphic/Communication Design, Data Analytics, Motion Video, Promotional Marketing, Events Marketing



4. Seasonal Marketing Trends “I can’t deliver on promises unless I connect the dots along the way — I need to constantly look at what are the different tools and platforms and solutions I’m using…” –Toni Clayton-Hine, SVP, CMO, Xerox Corporation



Seasonal Trends In Agency Search Marketers search for different services depending on time of year 2017 HY1

2017 HY2

2017 Full Year

1. Advertising 2. Direct Marketing 3. Social Media 4. Digital Strategy 5. Web 6. Branding 7. Marketing Strategy 8. Search SEO/PPC 9. Email Marketing 10. Mobile 11. Innovation 12. Content Marketing 13. Public Relations 14. Inbound Marketing 15. Influencer Marketing 16. E-Commerce 17. Healthcare Marketing 18. Multicultural Marketing 19. Media Planning + Strategy 20. Design Strategy

1. Advertising 2. Direct Marketing 3. Web 4. Digital Strategy 5. Marketing Strategy 6. Social Media 7. Mobile 8. Branding 9. Media Planning + Strategy 10. E-Commerce 11. Innovation 12. Search SEO/PPC 13. Content Marketing 14. User Experience Design 15. Email Marketing 16. Experiential Marketing 17. Inbound Marketing 18. Public Relations 19. Design Strategy 20. Influencer Marketing

1. Advertising 2. Direct Marketing 3. Web 4. Digital Strategy 5. Social Media 6. Branding + Marketing Strategy (Tie) 7. Search SEO/PPC 8. Mobile 9. Innovation 10. E-Commerce 11. Email Marketing 12. Content Marketing 13. Media Planning + Strategy 14. Public Relations 15. Inbound Marketing 16. Influencer Marketing 17. Healthcare Marketing 18. Design Strategy 19. User Experience Design 20. Multicultural Marketing



Seasonal Trends In Agency Search 5 services stood out when looking for differences during the year 2017 HY1

2017 HY2

1. Advertising 2. Direct Marketing 3. Social Media 4. Digital Strategy 5. Web 6. Branding 7. Marketing Strategy 8. Search SEO/PPC 9. Email Marketing 10. Mobile 11. Innovation 12. Content Marketing 13. Public Relations 14. Inbound Marketing 15. Influencer Marketing 16. E-Commerce 17. Healthcare Marketing 18. Multicultural Marketing 19. Media Planning + Strategy 20. Design Strategy

1. Advertising 2. Direct Marketing 3. Web 4. Digital Strategy 5. Marketing Strategy 6. Social Media 7. Mobile 8. Branding 9. Media Planning + Strategy 10. E-Commerce 11. Innovation 12. Search SEO/PPC 13. Content Marketing 14. User Experience Design 15. Email Marketing 16. Experiential Marketing 17. Inbound Marketing 18. Public Relations 19. Design Strategy 20. Influencer Marketing


Decision makers at companies seem to be searching for Social Media and Email Marketing partners more in the first half of the year. This may indicate a large number of companies typically switch mid-year.

Media, E-Commerce, and UX partners are all significant changes for a company and that may explain wanting to starting the new year with a change. However, searchers for Media Planning and Strategy, E-Commerce, and User Experience Design receive are more active in the second half of the year. This likely indicates finding a new partner to kick off the new year.


Service Areas With The Most Agencies Should agencies further specialize top services to better map to demand? Services With Most Agencies 1. Advertising 2. Branding 3. Marketing Strategy 4. Web 5. Digital Strategy 6. Social Media 7. Public Relations 8. Search SEO / PPC 9. Direct Marketing 10. Design Strategy


Are there some services that are overly dense with competition? Are some marketers searching for specialists, but finding a shortage? If you take a look at the top 10 services agencies identify with and reference it with the top services from 2017, there does seem to be some room for optimization.


Service Areas With The Most Agencies Should agencies further specialize top services to better map to demand? Services With Most Agencies 1. Advertising 2. Branding 3. Marketing Strategy 4. Web 5. Digital Strategy 6. Social Media 7. Public Relations 8. Search SEO / PPC 9. Direct Marketing 10. Design Strategy


Even though the bottom 5 services are in the top ten, they have less agency density compared to the volume of people searching for partners in those service areas. This is an opportunity for agencies to explore the service areas they target on Agency Spotter. Since all agencies are limited to a maximum of 5 service areas they can say they are great at and be found for, agencies should assess their services mix.


5. Multi-year Marketing Trends “It’s hard to accomplish simplicity, especially when there are competing incentives.” –Matt Jauchius, CMO, Hertz



Multi-year marketing services trends Summary: • Over the last four years, our deep dive analysis on marketing services searches has shed light on some sustaining trends. And, searches have significantly increased across all marketing service areas on Agency Spotter.

• 14 out of 40 marketing services tracked were trending up over the four year period.

• The five top upward trending services are Direct Marketing, Email Marketing, Search SEO/PPC, Inbound Marketing, and Healthcare Marketing. Marketing Trends Report January 2018


Macro Marketing Services Trends Deep dive analysis from 2014 through 2017 Advertising Branding Digital Strategy Innovation Web Social Media Marketing Strategy User Experience Mobile Design Strategy Media Direct Marketing E-Commerce Communication Design Content Marketing Public Relations Search Motion Video Email Marketing Packaging Events Promotional Marketing Qualitative Insights Gaming Data Analytics 2014


Experiential Marketing* Gaming CRM Automation Healthcare Marketing* Inbound Marketing*

Data Analytics Motion Video Promotional Marketing Events

Qualitative Insights

2015

2016

Advertising Direct Marketing Web Digital Strategy Social Media Branding + Marketing Strategy Search Mobile Innovation E-Commerce Email Marketing Content Marketing Media Public Relations Inbound Marketing Influencer Marketing Healthcare Marketing Design Strategy User Experience Multicultural Marketing Experiential Marketing WOMM Gaming CRM Automation Communication Design 2017


14 Services Trending Up 5 biggest upward trends are Direct Marketing, Email Marketing, Search SEO/PPC, Inbound Marketing, and Healthcare Marketing Direct Marketing Web Web Social Media Marketing Strategy

Social Media Marketing Strategy Search

E-Commerce Email Marketing Content Marketing

Direct Marketing E-Commerce

Public Relations Inbound Marketing Influencer Marketing Healthcare Marketing

Content Marketing Public Relations Search Email Marketing

Multicultural Marketing Healthcare Marketing* Inbound Marketing*

2014


2015

WOMM

2016

2017


6 Marketing Services Essentially Flat Advertising, Digital Strategy, Social Media, Marketing Strategy, Mobile, and Gaming have been relatively stable over the last 4 years Advertising

Advertising Digital Strategy

Digital Strategy Social Media Marketing Strategy

Social Media Marketing Strategy

Mobile Mobile

Gaming

Gaming Gaming

2014


2015

2016

2017


11 Services Trending In 2017 Despite having significantly more searches for every service in 2017, 11 were trending down for the year and 14 overall if you look at all 4 years Branding Innovation Branding + User Experience Innovation Design Strategy Media Media Communication Design

Experiential Marketing* Motion Video

Design Strategy User Experience

Packaging Events Promotional Marketing Qualitative Insights

CRM Automation Experiential Marketing

Qualitative Insights Data Analytics 2014


2015

Data Analytics Motion Video Promotional Marketing Events 2016

CRM Automation Communication Design 2017


6. Finding and Building Partnerships “We built the Agency Spotter platform to save you time finding and managing your agency partners. So you can steer the ship.” –Brian Regienczuk, CEO and CoFounder, Agency Spotter



How Agency Spotter makes agency search and selection easy • Are you one of the 81% of decision makers who starts their agency search online? 1

• Do you want a trusted way to identify better fit partners? • Would independent, verified client reviews and visual snapshot of an agency help you build your shortlist faster?

1 B2B

Social Technographics by Forrester, July 2013



Take Control Of Your Agency Search AgencySpotter.com

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Search by what’s most important

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Filter based on industry experience, Martech platform, agency network and more

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Build shortlists, compare and connect using verified client reviews and agency snapshots



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Agency Information Is All On One Page Trusted search and selection

• Easy to navigate more than 14,300 agencies • 40 services from digital marketing to packaging design • Find what you want with filters by industry experience, budget range, Martech platform, location, agency network, and audience focus B2C/B2B • At-a-glance view of each agency • Verified customer reviews • Easy to build shortlists and share them internally • Make a more informed decision, in less time



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Search By Project To Find Inspiration Discover agencies by their great work

• Search projects by service type or brand name • Mini-case studies and videos bring the work to life • Easy click through to the agency to read reviews • Favorite work you enjoy and access it later through your custom lists menu • agencyspotter.com/project-search



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Verified Client Reviews Trust your peers to help build a shortlist with confidence



Top Agency Reports Jump start your agency search with reports

• New reports launch monthly • Ranking uses both quantitative data and expert

evaluation of project work, client reviews, and more • Many different agency and design firm services covered • agencyspotter.com/top-reports



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Over 100 Brand Pages With Agency Data For Biggest Brands In The World Work smarter, see who big brands use • Over 100 Brand Pages today • Brand Pages mean that a number of people

from that company are using Agency Spotter • Easy way to explore your own company or learn from companies like Dell, Sony, Facebook, Coca-Cola, and Citrix are using



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