Sir Martin Sorrell (CEO WPP, and owner of agencies such as Ogilvy, Y&R, Grey, Wunderman, Scholz & Friends) recently spoke at the Advertisers Trends Day and referred to the top 10 Trends. As the most influential person in the ad industry view is important I'd like to share this list with you.
- Shift in power - Latin-America, South-West Asia and Middle East are becoming more and more important. WPP is overseeing these countries via 30 country or regional managers.
- Significant overcapacity - in various sectors like the car industry, driving brand differentiation. However an undercapacity of talent.
- Rise and rise of the web - the web is creating increasingly desintermediation, for example Amazon delivering food products at home.
- Growth of retail power - some big changes can be expected. With more people moving to cities, expected to be 70% of the global population, proximity of retail becomes more important. With more people working at home, in-home consumption will increase.
- Big challenge in internal communication - crossing the internal silos will be one of the most difficult tasks.
- World becomes global and local - clients will have more central control of activities and at the same time will be more locally involved.
- Power of procurement and finance - clients have been too much focused on reducing costs and we need to do more in convincing our clients of the fact that branding is an investment instead of a cost.
- Growth of parliaments - governements will gain in size. In many countries governemental budgets are the largests.
- The acceptance of social responsibility - when you're in the business for the long term, you will do good. This is about sustainability, and sustainability is at the front end of most companies.
- Industry consolidation - this will continue among clients and agencies. Packaged good companies will be able to invest more because of fresh money, which offers opportunities for agencies.
Some oneliners from his speech:
"Everything is an opportunity, unless you don't take up the opportunity, then it becomes a threat".
"I'm sometimes called a bean counter. Well I have to tell you the more beans I count the better I feel".
"Forty-five to fifty percent of our revenues sources didn't exist in 2000, there has been a tremendous change and growth".
"This is a trillion business of which million is in traditional media. Growth of the business is clearly linked with GDP growth".
"We're expecting new media to represent 35-40% of revenues and increase measurable marketing services (data and consumer insight) to more than 50%".
Ulbe Jelluma | Print Power