A AR PULSE FOR AGENCIES 2020 - AAR Group
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A AR PULSE FOR AGENCIES 2020
As our marketing had become more global in nature, we wanted a step change in our creative agency partnership that could match our ambition and service our future growth. All of which had to be realised in a new communications platform and creative idea that could be launched in a matter of months. AAR created a programme that met the demanding timescales, gave confidence in our decision making and future-proofed our agency appointment. JUST EAT
CONTENTS
04 Foreword 20 Let’s talk about the ‘m’ word
06 News 22 Ten observations on the creative pitch
07 Victoria Fox joins AAR 24 Cross-functional teams call for focus on
relationships
07 AAR becomes employee owned
27 Boarding the consequences train
08 Lend us your ears for Fightback
08 AAR Quiz for NABS 29 AAR in 2020
10 AAR contributes to Promote UK 30 Core and senior management seminar
10 What is creativity for in the UK today? programme
32 Business development apprenticeship
11 Insights and perspectives
12 New business market 2019 33 About us
14 In. Out. Is it time to shake it all about? 34 Who we are
18 Creativity starts with curiosity
3
AAR PULSE 2020 ■ FOREWORD
Foreword
Uncertainty fuels indecision and uncertainty has ruled 2019,
at least politically. However, for AAR, 2019 has been the
polar opposite. A year of decisive change.
A change in ownership structure to an expectations and demands are increasing,
We need inclusive leaders EOT partnership allowing Kerry, Paul and and the disruptors have set new standards.
who recognise that Martin to bring me in alongside them to Nick Tate, Head of ‘Next’ at GSK,
diversity and inclusion evolve and grow the brilliant business they articulated it brilliantly in his interview
have built and nurtured. for our innovation podcast, ‘Fightback’,
is the answer to our in which he said we are all competing
business challenges. So I write this introduction through two with ‘the speed of prime’. In order to
quite different lenses. compete, clients are making considerable
investments in data and technology to
I am writing this the weekend after the consistently understand and enhance the
country voted in Boris Johnson. A simple customer experience across all channels.
reminder that while ‘Get Brexit Done’
became hugely repetitive and infantile to AI is a common theme with ‘next best
some, this simple, single minded message action’ marketing as a goal. This explains
hit exactly the audience it was targeting. why ‘agility’ is the most common term
If nothing else, we go into 2020 with used in our briefings. To really deliver
more clarity and an even bigger need competitive advantage and leverage these
to ensure the marketing community investments, marketing departments
represents, reflects and truly understands need to change structure, processes and
the audiences with which we are trying to behaviours. They need to change the
connect. We need inclusive leaders who rhythm of marketing.
recognise that diversity and inclusion is
the answer to our business challenges. What is so exciting about this future
is that brands will be able to be truly
Looking through my AAR lens, I have useful to their customers, giving them an
spent my first six months in deep listening opportunity to help and delight.
mode, spending time with many of our
clients. Working across a wide range of However, without creativity there is
businesses from disruptors to heritage a danger of digital sameness. The
brands, we sit in a privileged position. A algorithms will drive us quickly to a level
position that gives us perspective across playing field and, at this point, what
different strategic approaches, but we can separates and differentiates is how the
also see common themes emerging across brand comes to life in these moments.
the board. How the uniqueness of the brand moves
beyond functional experiences. This is
Our clients are trying to put the where creative differentiation becomes
customer into the driving seat. Customer the principle for growth.
4
FOREWORD ■ AAR PULSE 2020
It has felt like creativity has been left off broader forms of creativity and re-imagine
the agenda in the last couple of years. creativity in the new rhythm of marketing. To really deliver
Like it is a dirty word. I think there are two The future marketing model has rightly competitive advantage
reasons for this: been high up the agenda this year and
that will continue into 2020 and beyond.
and leverage these
We have been in what I call a investments, marketing
1 ‘plumbing phase’, where the focus However, I am going to end on a departments need
has been on laying data and technology statement that is bang on the money. to change structure,
foundations to enable mass Earlier this year, Campaign ran a breakfast processes and
personalisation. briefing on the future model. It was Alex
Grieve, Chief Creative Officer at AMV
behaviours.
Creativity needs a re-brand. When BBDO, who stood out for me when he
2 we think creativity, we need to think said that surely the right marketing model
creativity with a big ‘C’. Creativity to solve has to be the one that liberates creativity
business challenges and to manifest across the board.
beyond communications.
So, here’s to 2020. A year of creativity
I strongly agree with Dave Trott when he and change fuelled by a celebration of
said “Pure creativity would be what you difference in all its forms.
find in art galleries; creativity for its own
sake. Applied creativity would be what
we (creative partners) do: creativity with a
specific purpose”. ■
This creativity needs to be applied to all
marketing challenges, not just marketing
communications.
Victoria Fox, CEO, AAR
As a collective, we need to champion vfox@aargroup.co.uk
5
News 6
NEWS ■ AAR PULSE 2020
Victoria Fox joins AAR
Victoria Fox joined AAR in May 2019 As brands look to put the customer
as our new CEO, taking over the right at the heart of their businesses,
leadership of the company from they are clearly making significant
Kerry Glazer and setting the company financial and structural investments in
direction into 2020. data and technology across marketing
and their organisations. To realise these
Victoria’s 20 plus years in the industry investments, both the shape of their
have been predominantly agency-side. partner landscapes and the rhythm of
She has extensive senior management marketing output are changing.
experience of working with brands,
accelerating business change and digital Fusing traditional and digital marketing
transformation. Her expertise and vision techniques is clearly critical, and there is
will supercharge AAR’s evolution into new an increasing role for highly experienced
and innovative areas of consultancy. consultancies like AAR to support the
design and shaping of these evolved
At the time of her appointment, Kerry Victoria Fox, CEO, AAR partner landscapes.
commented that Victoria’s drive, talent
and personal integrity was exactly what Under Victoria’s leadership we are
was needed to lead AAR through the next There is an increasing already in the process of expanding
stage of its successful development. role for highly experienced AAR’s offering, adding new capabilities
consultancies like AAR to to the existing mix, but ever mindful
Victoria has spent the first six months since support the design and that we are here to support our agency
her appointment in listening mode, talking clients in this changing market. We will
to as many of AAR’s clients as possible. All
shaping of these evolved continue to offer valuable perspectives
those Victoria has spoken to have been partner landscapes. on what is on the minds of brand owners
candid about how they are adapting to the and in helping agencies to win and retain
changing marketing landscape. clients in a highly competitive market. ■
AAR becomes employee-owned
In July 2019, nearly 45 years after and consistency in the way it operates This move is very much in keeping with the
AAR was founded by Lyndy Payne, the as a business. It strengthens performance, way in which AAR has always managed
company became employee-owned. entrepreneurialism and innovation, and itself, ensuring both the succession and
AAR’s three owners, Kerry Glazer, Martin makes it easier to pass on to the next legacy of a brand that Kerry, Paul and
Jones and Paul Phillips, sold a majority generation of business leadership - Martin care so much about.
proportion of their shareholding to create heralded by new CEO, Victoria Fox – to
an Employee Ownership Trust (EOT). incentivise the team and, over time, They retain both their involvement and
transition the business. a minority stake in the business, as Kerry
An EOT is an indirect form of employee moves to the position of Chair of AAR,
ownership in which a trust holds a Paul remains Managing Director, and
controlling stake on behalf of all its An EOT is an indirect form Martin, Senior Managing Partner. Other
employees. Companies that are an of employee ownership minority share holders include members
EOT tend to deliver superior business in which a trust holds of staff who have exercised their share
performance and be more innovative too, options and the company has created a
a controlling stake in a
achieving this through sharing information growth share scheme. Hannah Brown and
and responsibility business-wide. company on behalf of all Nick Horswell have joined the AAR Board
its employees. as Trustees of the EOT and Non-Executive
Establishing an EOT allows AAR to retain Directors alongside Kerry, Victoria, Paul,
its independence, impartiality, integrity Martin and Maria Farrell. ■
7
AAR PULSE 2020 ■ NEWS
Lend us your ears for Fightback
You know it’s not like us to talk about ourselves but forgive us as we crow a
bit about our new podcast – Fightback.
ANOTHER PODCAST ON TOP We were also a little tired of start-ups
OF THE ONES I ALREADY getting all the attention. It’s not surprising
DON’T LISTEN TO? that they get to be innovative - no legacy
We know. We know. We’ve all got a long systems, oodles of funding and no silos.
list of things we want to listen to. And There are probably lots of podcasts about
we understand that we’d be way down their stories. But not one, until Fightback,
the list after the football podcast and the about UK heritage brands and their
trash talk podcast. But when you’re ready stories.
for something useful and interesting, give
us a listen. WHY HERITAGE BRANDS?
The harder (and to our mind) more
We launched Fightback because we interesting job is transforming heritage from Boots, NatWest, GSK, Homeserve,
thought there was a story going untold businesses from the inside. How our most Avios and Sainsbury’s.
and we wanted to tell it. If you want to loved heritage brands are fighting back
hear how to build a start-up or scale up, against disruption is a fascinating journey IS THERE MORE?
there are hundreds of podcasts. If you are into cultural change, business model Yes! Series 2 is in the works and we’d love
a change agent inside a long established evolution and marketing transformation your help. If you’ve got a brand you think
brand - somewhere most of us have heard and their stories are what Fightback is all would fit nicely into Fightback please let
of - there was no-one shining a light on about. us know.
those stories.
There’s six episodes in the first series; each Fightback: An Innovation Podcast is
And let’s face it, most of us work in, or is a chat with a leading heritage brand available on Apple Podcasts and Spotify.
with, those brands. whose market is being disrupted. We hear Happy listening! ■
AAR Quiz for
What a night!
On a cold evening in mid-March last year,
60 fiercely competitive agency teams
gathered at Facebook’s Rathbone Square
offices for the annual AAR Quiz.
Five rounds of 15 questions, more beer,
wine, pizza and chocolate than you
could shake a stick at, and the AAR Quiz
Champions Cup at stake.
But this year was different: we decided to
use the Quiz to raise some much-needed It was enormous fun, even with the very A great time was had by all AND we raised
funds for NABS, who take care of the long queue to get into the venue as important funds for our beloved NABS.
wellbeing of everyone in our industry. And everyone was signed in and their identity So we’re doing it all again this year!
you all stepped up brilliantly. documents checked (thank you so much
for your patience!). There were some This year’s AAR Quiz for NABS is on
More than 400 of you helped us raise monstrously tricky questions, one major Thursday, 26 March 2020, once again at
£20,000 for NABS. challenge for the adjudicator during the Facebook’s offices in Rathbone Square.
photo round, and endless demands for a Tables have already gone on sale at £350
We had fantastic help from Facebook who recount of points at every turn, such was each so, if you haven’t yet booked your
not only provided the venue - one of the the ferocity of the competition. place and want to wrestle that cup out
only places in London with a room big of Above+Beyond’s hands, please use
enough to accommodate so many teams – Above+Beyond’s ‘Collective Wisdom’ team this Eventbrite link (www.eventbrite.
they also donated a huge supply of wine, were the eventual victors with a 77-point co.uk/e/aar-quiz-for-nabs-2020-
refreshments and helpers to make the haul, narrowly beating Bartle Bogle tickets-75732428733) to secure a table.
event go smoothly. Orion kindly donated Hegarty’s ‘Black Sheep’ and Mullen Lowe’s
the beers and Mars, the chocolate. ‘Old Street Greg and the Beefstacks’. Looking forward to seeing you there! ■
8
Here’s why we think you’ll get to a better place with AAR’s support. They have a skill in crystallising and simplifying the challenge. Then they make sure you stay focused on meeting that challenge across all areas of their counsel. They’ll help you make better decisions that will deliver better results. And it will be an enjoyable experience for everyone involved. Airbnb
AAR PULSE 2020 ■ NEWS
AAR contributes to Promote UK
In 2019, we were delighted to benefit UK agencies and we will continue
continue to be part of the working This initiative can only to try and play our part in encouraging
party behind Promote UK. benefit UK agencies more brand owners to come to the UK
to work with some of the best agencies
and we will continue to
Chaired by Janet Hull, Promote UK in the world.
is an initiative created by the IPA, try and play our part in
Advertising Association and Department encouraging more brand In 2020, we’ll also be supporting this
of International Trade to support the owners to come to the UK initiative through the launch of the
international growth of UK advertising to work with some of the UK Advertising Export Group. This
and marketing services companies and to is an industry partnership with UK
build on the UK’s position as a centre of
best agencies in the world. Government backed by a £1 million
excellence and a global hub. Some of you annual promotional budget aimed at
may have seen the ‘Creativity is GREAT’ generating opportunities for UK agencies
campaign that was featured at the in key markets including China, Japan,
Cannes Festival in June, which was a key measurement tools, general advice and South Korea and North America. If
part of the Promote UK programme. a mechanism by which any interested anyone wants further information about
CMO’s can engage with UK agencies. how they can get involved, please don’t
Our specific role was to provide data, Brexit or no Brexit, this initiative can only hesitate to get in touch. ■
What is creativity for in the UK today?
Throughout history, creativity has and lower investment than technology micro-reaction or statement on their
been one of Britain’s most valuable or data. view of the value of creativity to Britain
resources, industries and exports. in 2020. The DMA wanted to reach out
Just think of our inventors, inventions, Our own Tony Spong sits on the Creative to those leaders from all walks of life and
and, indeed, the revolutions we’ve Committee at the DMA, which is made industry who are making great waves in
started – and the new global markets up of professionals at all levels from the creativity from a business, art, humanities
opened up by them. industry who are helping to formulate or social sense, and paint a picture about
an answer to this question. a moment in time, encapsulating the
And yet the irony is that many believe importance creativity plays in society in
that in business today, creativity is #CREATEBRITAIN2020: Britain 2020.
valued less than ever by company and THE BOOK
government decision-makers. Certainly, The first initiative has been to invite the They're now sifting through the responses
if the headlines are to be believed, it’s creative doers, makers, thinkers and and aim to have the book published in
seeing more redundancies, less training leaders to submit a thought-piece, March 2020. Something to look out for! ■
10Insights and
perspectives
11AAR PULSE 2020 ■ INSIGHTS AND PERSPECTIVES
New business
market 2019
by Martin Jones
Figures collated from AAR’s newbizmoves database have revealed that the
The shape of the new total number of appointments made in 2019 showed an overall decrease of
business market is what is 12.2% versus 2018. This compared with a decrease of 0.5% in 2018 versus 2017.
most interesting, with the It should be noted that the figures The number of advertising
biggest drop in ‘Integrated’ only cover appointments and, appointments reported decreased
pitches and the biggest consequently, any pitches that took by 7.2% compared with 2018. This
rise in CRM/Performance place in 2019 where an appointment volume decrease was, however,
pitches. has been put off until the new year not directly mirrored in value
have not been included in the final terms with ten brands with media
figures. budgets in excess of £20 million
making appointments (Barclays, BT,
By the end of the third quarter, the CCS (Brexit), Dreams, GoCompare,
hope and expectation was that the Ladbrokes Coral, NatWest, Virgin
new business market would end up at Media, Wickes and William Hill).
similar levels to the previous year but, Of the ten brands appointing in
for various reasons, the final quarter 2019, only six held competitive
of the year turned out to be quieter reviews while the remaining four (BT,
than might have been anticipated, CCS (Brexit), NatWest and Wickes)
leading to an overall year on year appointed without a pitch, either
shortfall. from within their own roster or
through a prior relationship.
The comparative health of the specific
communications disciplines in 2019 Whilst not necessarily a reflection
(versus 2018) in terms of volume of on the health of the sector, the fact
appointments were as follows: that some of the country’s largest
advertising spenders are putting
their heads above the parapet will
DISCIPLINE % DIFFERENCE 2019 V 2018 hopefully signal an increase in overall
confidence. As we approach the new
year, we are still awaiting a result on
the B&Q review, and agencies are
preparing themselves for the final
CRM/ stages of the highly prized Transport
Total Advertising
Performance for London account.
-12.2% -7.2%
+21.2% Media agency wins are down by
10.7% versus 2018 but do include
a number of major UK and global
brands including Ebay, Ferrero Rocher,
JustEat, L’Oreal, Stars Group, Three,
TSB, Vodafone and William Hill.
Digital Integrated Media
-43.9% -10.7% In terms of the types of brands that
-29.3%
had appointed agencies in the first
three quarters of the year, both the
advertising and media new business
communities gained through new
brands coming into the market for
Source: AARnewbizmoves the first time including Bloom & Wild,
12INSIGHTS AND PERSPECTIVES ■ AAR PULSE 2020
Cazoo, Good Hemp, Karma Cola, CUSTOMER CENTRICITY keep up in an increasingly competitive
Klarna, Pip & Nut and PitPat. The shape of the new business market.
market is what is most interesting,
The volume of CRM/Performance with the biggest drop in ‘Integrated’ In terms of the industry sectors that
appointments increased by 21.2% pitches and the biggest rise in CRM/ were most active in 2019, they are
compared with 2018; a trend that was Performance pitches. In our view, this relatively similar to 2018 with first
also reflected in the quality of the is the new ‘integration’ with brand time advertisers often driving market
opportunities for agencies with major owners looking holistically at their growth. ■
brands including Comparethemarket, data driven marketing and breaking
Dixons Carphone, HSBC, Lloyds, down these silos as they put the
Macmillan, Three and Toyota all customer firmly into the driving seat.
appointing new partners. This focus on customer centricity is
also seeing more capabilities being Rank Industry
Stand-alone digital appointments bought in-house and will account for 2019
continued to decline (down 29.3% the substantial drop in digital pitches 1 Retail
year on year) although the focus of year on year. 2 Financial
these reviews continues to evolve.
Digital comms pitches remained a LOOKING AHEAD TO 2020 3 Food
rarity, but there has been a rise in the Despite the downturn in the final 4 Travel
number of brands looking to appoint quarter of 2019, we anticipate that 5 Alcoholic drinks
a specialist social agency. new business will not decrease into
2020 as marketers have no choice 6 Charities
Integrated agency appointments but to keep up with changing 7 Government
(involving three or more disciplines) customer demands. How the shape
8 Gambling
were down by almost 44% year on of new business activity develops is
year. The majority of the reviews fascinating. Brand owners will need 9 Motoring
were modest in terms of budget, the to continue adding capabilities to 10 Telecommunications
exceptions being the Open University their marketing mix (by in-housing
integrated tender and a number of and adding external partners to their Source: AARnewbizmoves
Government framework pitches. rosters) as this is not seen as a nice
to have but, instead, a necessity to
13AAR PULSE 2020 ■ INSIGHTS AND PERSPECTIVES
In. Out. Is it time
to shake it all
about?
by Kerry Glazer
In-housing has never been a necessity of speed to market, pressure
Many brands need an hotter topic. on costs and ROI, pressure on agency
immense volume of business models and relentless disruptive
Despite the sense of recency as a trend, change has led to the cycle accelerating
content produced to
with debate in the trade press, at over the last three years.
service their customer conferences, and in many conversations
touchpoints and the involving agencies, in-housing has been The models we observe commonly split
speed to market has to around for years in one form or another. into three types:
be rapid. Brands have routinely explored different
in-house options as part of their ongoing ■ 30% in house, 70% via external
challenge to define the right model for partners – by far the most common split
their budget, scope of work, culture and
future needs. ■ 50% in house, 50% via external
partners
But it is still not a ‘one way only’ trend.
■ 70% in house, 30% via external
The research company, Gartner, reported partners – the least common
in 2018 that most marketers ‘expected
to retain or expand their use of (external) Many brands need an immense volume
agencies between now and 2020’. of content produced to service their
Research carried out by AAR in 2016 customer touchpoints and the speed to
suggested that there were as many market has to be rapid. To cope with this
brands doing less in house as there were tsunami of need, more clients are bringing
brands doing more, suggesting that the parts of their marketing output in-house.
rate that brands move to in-housing tends
to be cyclical. As a consequence, the agency community
is expressing anxiety over what it sees as
That said, brand marketers are having a trend in agencies losing business and
to work harder to deliver consistently important margin and tasks to in-house
across all of their customer touchpoints. teams that would previously have been
The growing focus on models, increased handled by an external agency partner.
complexity in business operations, issues
with transparency and trust, rise of At an AAR breakfast for agency CEO’s on
CX and ownership of data, agility and evolving client:agency models, in-housing
14INSIGHTS AND PERSPECTIVES ■ AAR PULSE 2020
was raised as a topic that agencies would couple of years. The list also included two
most like AAR to look into. So we did. brands who had managed up to 30% of The agency community
their marketing output via their in-house
AAR INSIGHT RESEARCH agency - for ten years and three years
is expressing anxiety over
In order to get some granular insight respectively - but had subsequently both what it sees as a trend in
on brands’ viewpoints on in-housing elected to close these resources down agencies losing business
and how it actually works in practice, and outsource everything to their external and important margin and
we undertook a series of in-depth agencies. tasks to in-house teams.
interviews with 10 different national and
international brands in Autumn 2019. There were some common themes that
covered both the successes and the rarely
All those we interviewed have, or have acknowledged complexities of in-housing,
had, in-house creative resource in their and some useful tips for those external
UK office. The in-house departments’ agencies who are – or will soon be –
size varied from less than five people in working with brands that have dedicated
total to more than 200. We spoke to in-house resource.
both leaders of in-house agencies and ■ When it goes wrong, it goes wrong
marketers who work alongside them. The key themes that emerged are toxically.
grouped under the following headlines:
Those with in-house media services were ■ Cross-charging internally for in-house
not explored during this project: that’s an ■ There is always going to be a role for services is a double-edged sword and
investigation we’re planning for 2020. external agency partners. doesn’t necessarily lead to the cost
We’ll be sure to keep you posted on that. neutrality Nirvana hoped for.
■ Creating and running in-house resource
The brands were from a spectrum of is not a walk in the park. ■ The10 best pieces of advice that
categories: retail (bricks and mortar and we can give to the external agency
online), FMCG, entertainment, financial ■ The third year of operation of in-house community.
services, and charity sectors. These were creative resource is like the difficult
brands that represented, conservatively, in ‘second album’. The following is a summary of some
excess of £12bn of UK marketing spend. of the things we learned during these
■ There are clear ‘X factors’ that define conversations that are particularly relevant
In some cases, the brands’ in-house success. for creative agencies. The other themes
resource had been established for more will be published via other AAR think
than three decades; for others, only a ■ The growth in popularity of in-sourcing. pieces or events in the coming months.
15AAR PULSE 2020 ■ INSIGHTS AND PERSPECTIVES
THERE IS ALWAYS GOING
TO BE A ROLE FOR EXTERNAL
AGENCY PARTNERS
The most reassuring prediction that we
can make for anxious agencies in the
creative space is that hell will most likely
freeze over before all brands decide they
no longer need the strategic and creative
IP, perspective and platforms that their
relationships with external agencies
deliver.
We value our external
partners highly. There’s
not a world where
we would want to do
everything through our
internal agency: there’s
always a role for external
agencies.
In-house agency leader The brands we spoke to acknowledged Even where there is a highly
that the balance to this was how effective sophisticated in-house agency within
the work is commercially for the brand. a client company – one multi-product
The task is to always do the very best for brand we spoke to had a team
When commenting on the scope of remit the brand to get the desired commercial numbering up to 26 people focused
between in-house and external agency return but that in-house teams still had on creating and producing a wide
partners, there was commonality in the to aim to ‘knock the porridge out of the range of digital content and campaign
view that an in-house agency is all about park’ creatively. assets (key visuals, POS and other
delivery whereas the external agencies’ instore assets, A/V, social media and, in
focus should be the quality of the creative That said, big projects where fresh one case, a TV ad for a media owner
thinking and ideation. This is rather binary thinking, creativity and innovation are partnership) – there was still the view
and it’s not to say that the leaders of required are seen as the province of the that there was a continued and defined
in-house teams weren’t concerned about external perspective by almost everyone need for relationships with external
creativity. They are. Very concerned. Whilst we spoke to. agencies.
the axis for in-house agencies is through-
put, with the focus being on ‘resourcing
at the point of demand’, managing the There’s always a call for I think the future for
volume of asks in the most agile way balance; you need to this model for brands
possible, there is still a desire to make the is – where feasible and
have an external agency
work as good as it can possibly be.
roster. You need them possible – to have an
for the right briefs and for in-house team that has a
With in-house teams innovation. Because we do clearly defined role. But
you have to recognise a lot internally, we need to I’m not seeing a place
that most of the creative make sure the in-house where that trumps the
work you do is akin to team keep on top of their need for outside support.
‘porridge every day’. You personal development In-house agency leader
get to decide whether it and that we give them
has sugar, jam, cream or opportunities to work with
chocolate sprinkles on it external agencies in order
but it’s still porridge. to keep fresh. There is an
In-house agency leader inherent danger in losing
that external perspective.
Marketer responsible for
In-house creative resource
16INSIGHTS AND PERSPECTIVES ■ AAR PULSE 2020
THE 10 BEST PIECES OF strengths and dovetail them with your
ADVICE WE CAN GIVE TO THE own. Recognise that the value you bring We work very
AGENCY COMMUNITY is your creative IP, strategy, perspective collaboratively with our
Work with the marketing team to and big galvanising ideas.
1 forensically agree the remits and
agency; we don’t touch
responsibilities for both the in-house If you become obstructive, what they do, that’s their
team and you as the brand’s external
7 unwilling to co-operate or world. We look after the
agency partner. This should indicate the dismissive of their work, this leads to day to day work for the
clear water between you and dictate strife that the CMO and their team don’t
where the hand offs are when need. In this scenario, it’s very likely the
brand so collaboration is
collaborating on a campaign or piece of external agency will be the loser. key. You’ve got to trust
work. Review this with your client Resentment can build up internally: ‘why each other.
regularly. have I just spent thousands of pounds In-house agency leader
on that when it’s been so painful?’ can
Make sure the respective remit and lead to the marketing team questioning
2 scope of work of both the in-house all of the work, not just the piece that
team and you as the external agency should have been handed off to the
partner are communicated clearly to the in-house agency. Fighting over work that
rest of the client’s business. you can’t hope to do at the same cost or Some of the best
with the same agility as the in-house agencies I’ve worked with
3
Always keep in mind that brands agency is not smart. Concentrate on are the ones that don’t
have a very clear view about the what you do that adds value and lean
value of their external agency partners into your strengths.
try and do the ‘we want
and what they can offer a brand in terms it all’. It is pointless the
of IP and perspective. Include the in-house team when agency trying to do the
8 entering effectiveness or integrated art-working and other
In-house agencies usually have an awards; enter awards jointly as a clear assets as we can get that
4 openness and willingness to statement of your collaboration with one
collaborate that will serve the mutual another and intention to do the best,
done elsewhere and the
relationship well. most effective work for the brand. agency could then move
on to the next big project
5
They are generally pretty agnostic
9
Promote shared portfolios of work or exciting thing.
and rarely have an agenda to take internally within the brand and in
Senior brand manager
on the external agencies’ work – they the agency’s own credentials.
don’t set out to run the world, they
don’t need to win big pitches and be on Be less afraid. Most agencies
top of the new business rankings. They
10 already work with many brands
are much more focussed on making who don’t have an in-house capability,
great, hard-working assets for the brand and it’s not something they can build
that are right and drive the business – overnight. The fear that ‘everything is
and you can help them with that. going in-house, we are going to lose our
business’ is misguided. It’s just not going
Be confident. Don’t be precious. to happen in that way.
6 Acknowledge the in-house agency’s
Whilst this summary is only scratching their external agency partnerships the best sense of the word, by the
the surface of the what we have to seamlessly deliver brand brand for forms of communication
learned during our conversations communications evolves, one very that the agency does not execute
with those brands who run their own significant and necessary question nor gain any margin from, cannot
in-house creative resource, I hope it arises. be predicated on a time-based, cost
engenders a feeling of reassurance. It plus model of remuneration. If the
should also flag an opportunity which How are agencies going to be future for performance marketing and
exists for agencies to help and support suitably remunerated for the other hardworking integrated assets
their clients who want to create some strategic and creative platforms they is in-house management then the
form of in-house resource – whether create from which other integrated model via which external agencies are
it be via headcount or insourcing - or communications – developed by the remunerated for the IP they create for
who already manage some of their in-house team – are produced? their clients has to change.
scope of work in-house.
The value of the strategic and We’ve got some ideas.
As the model where brands depend creative ideas created by the external
on both their in-house resource and agency which are exploited, in Watch this space. ■
17AAR PULSE 2020 ■ INSIGHTS AND PERSPECTIVES
Creativity starts
with curiosity
by Tony Spong
We work in an industry where the words ‘creativity’, big idea’ and ‘brave’ are
bandied about a lot. More recently, we’ve been hearing the notion that there is
some existential crisis in our ability to be creative and who should ‘be’ creative.
At a time of what seem like
unprecedented challenges for our planet,
If exposure to stimuli
the country, the high street and our own
lies at the heart of any well-being as individuals, we need creative
creative project, then we solutions more than ever. And the key to
need to be more open, creativity is curiosity. Every creative idea needs some form of
more collaborative and, stimulus to spark that leap from 2+2=4
Let me give you an example. Last year I to 2+2=5. To find these stimuli we need
ultimately, less fearful needed to lay a new path in my garden. to go for a walk; we need to change our
of exploring things we I’d assumed it would be a traditional environment; we need to feed our minds
haven’t done before. We stone path, but I couldn’t see how I’d get with (seemingly) unrelated ingredients.
need to develop a culture it all done before the rains came. And if exposure to stimuli lies at the heart
of curiosity within our of any creative project, then we need to
Then, one free weekend, my wife and be more open, more collaborative and,
businesses. I went for a walk in the country. At ultimately, less fearful of exploring things
one point we came across a path of we haven’t done before. We need to
raised railway sleepers lashed together develop a culture of curiosity within our
and covered in chicken wire to stop us businesses.
slipping. The simplicity of this solution
sparked an idea involving fence posts, In a recent Harvard Business Review
decking boards and postcrete. The article, two main factors were identified
following weekend I built an entire path as stifling curiosity:
up my garden in two days, at a third of
the price I expected, and I now have a We have the wrong mindset
unique feature to boot.
1 when it comes to exploring
new ideas.
If I hadn’t gone for that walk, I wouldn’t
have seen something that gave me the The marketing industry is often described
stimulus, that made me curious to explore as being ‘fluffy’. There’s a perception that
how it might work for me, and so end up letting curiosity off the leash will lead to
with a really creative solution to a looming a costly mess by slowing down decisions
problem. and constantly challenging the status quo.
18INSIGHTS AND PERSPECTIVES ■ AAR PULSE 2020
This is the main reason
brands hire external
consultancies and
agencies; to bring the
stimuli to the table and act
as a counterbalance to
the brand’s natural focus
on efficiency.
The study found that the opposite how marketing can help their business This is a very recognisable scenario today
happened if managed properly: but also how and where creative thinking as new start-ups often spot the change in
is best deployed; that might just start to customer need faster than the established
■ Curiosityallowed alternatives to any redefine marketing itself. Agencies, in turn, brands who have forgotten how to
given problem to be explored, leading to need to involve their clients in creating a experiment and innovate. Indeed, many
fewer errors. focused curiosity agenda to ensure that the a founder story includes that ‘country
right stimuli are feeding the plan. walk’ moment when they are grabbed by
■ Curiosity drove greater innovation. a certain stimulus that is the spark for a
We seek efficiency to the business idea.
■ Curiosityabout other people’s ideas and
2 detriment of exploration.
perspectives helped improve collaboration This is the main reason brands hire
and reduce conflict. Part of the blame for this can be traced external consultancies and agencies; to
back to Henry Ford. He successfully bring the stimuli to the table and act as
For the leadership team, curiosity identified that there was a market for a counterbalance to the brand’s natural
promoted sharing information more a ‘car for the masses’ and set about focus on efficiency. However, is there
easily and listening more carefully, which working out how to do that at scale. a danger that, as consultancies and
enhanced overall performance. In our His obsession with efficiency pretty agencies have grown through acquisition
research we are certainly seeing that much wrote the rule book on how to over the last decade, they too have
brands and agencies have lost a lot of that do things at scale; a rule book we still become overly focused on efficiency and
culture of curiosity. At an intrinsic level, follow today. Unfortunately, he forgot to are losing their natural curiosity?
brands are telling us that their agencies register the next trend which was that
are not being curious enough about their now everyone had a car, they quite liked It’s time for a change in our thinking – in
business, while agencies say that they no the idea of having a different one from brands and agencies alike. We need to
longer have the headroom, which has to their neighbour. General Motors spotted be brave enough to engender a greater
be a worrying trend. this and developed a range of cars which culture of curiosity, to help find the stimuli
captured the main share of the market to spark ideas and deliver the creative
Brands, both new and old, are looking at and almost did for Mr Ford. solutions our futures depend on. ■
19AAR PULSE 2020 ■ INSIGHTS AND PERSPECTIVES
Let’s talk about
the ‘m’ word
by Paul Phillips
Trust is the most important element of any relationship. It’s the firm belief reasons for this are understandable:
that the other party can and will do the things they’ve said; everything else
flows from there. ■ Marketing must pitch for budget
alongside every other area of the business.
A recent survey - you know, one of those on the strategic and creative opportunities
surveys that’s perfect fodder for talk show to be addressed, I can understand why ■ Marketing hasn’t previously undertaken
presenters on LBC - revealed that people the subject of fees, FTE’s, bonus schemes, the type of comms activity being
in the UK find it easier to discuss mental contracts, commercial arrangements pitched and is looking to the agency for
health and their sex lives than they do and all else relating to money can be recommendations.
money. somewhat less appealing.
■ The business is a start-up and engaging
The report suggests that despite wider In my experience, there are three reasons the services of an external agency for
societal breakthroughs in more openly why marketers don’t want to talk about the first time; they don’t know what to
discussing personal subjects, it appears money, be it for marketing, comms, budget.
that money is still seen as off-limits as a production, media or agency fees: this
conversation topic in the UK. last one generally being of most interest WHAT CAN AN AGENCY
to an agency. DO TO HELP IN SUCH
This appears to be no less the case when CIRCUMSTANCES?
it comes to brands pitching their business They are unable to give you a Always talk to them about this - and talk
and, perhaps, understandably so.
1 budget. early in the pitch. Share your experience
of how other businesses in similar
Faced with the prospect of pitching It might seem unusual to not know what circumstances have approached the issue
agencies focusing their collective attention budget you have, but sometimes the of budgets. Reference advertising to
20INSIGHTS AND PERSPECTIVES ■ AAR PULSE 2020
sales norms or benchmarks, ideally for I also think there’s a more qualitative, but
the category. Share your agency’s PBC no less insightful approach you can take: Despite wider societal
(Proprietary Budget Calculator) created for trust your gut instinct.
breakthroughs in more
such circumstances. This may sound like
a daft idea, but I suspect it would be well What do you feel when you eyeball the openly discussing
received. decision-maker? This should tell you personal subjects, it
everything you need to know. appears that money is
In such circumstances the client will still seen as off-limits as
welcome some help from agencies If it were me in these circumstances,
and is more than likely to be open to I’d like to think that I’d walk away.
a conversation topic in
the suggestions you make, and in the Every time. Because I wouldn’t want to the UK.
agency’s quest to win the pitch, this will work with a business that didn’t respect
add to a sense of being ‘an agency I want my agency sufficiently to share some basic
to work with’ amongst the client team. information about the opportunity for
which my team is prepared to bust a gut
They are unwilling to give you a to try and win in a pitch.
2 budget. You can also apply the same thinking
Easy for me to say. I don’t have the as in the first scenario – where they are
I’ve never understood this attitude, but growth targets or reporting lines that unable to give you a budget - and such an
from time to time we still come across it. you do. But I suspect that there are approach will probably be welcomed by
Marketing or procurement have clarity too many occasions when an agency the client.
about the overall budget, what they are pitched without knowing the budget and
looking to pay in agency fees, production regretted it after the event, win or lose. TO SUMMARISE
and media, but do not want to share any When it comes to pitches, I’ve distilled
of this information. Why? They haven’t thought about the everything that an agency wants to know
3 budget. from a prospective client down to two
I think the answer lies in a misguided questions:
(in my opinion) belief that this will both To be fair, I should probably add the
reduce their ability to negotiate effectively word yet or sufficiently to the end of the What is it you want us to do for
and only encourage agencies to make statement.
1 you?
recommendations that spend all the
available budget for the maximum fee. In these circumstances there’s a How much are you prepared to
recognition and understanding that,
2 pay us for our services?
SO, WHAT’S TO BE DONE? when pitching, budgets are important for
You can still apply proxy assumptions agencies to know about and understand Of course, there’s lots of detail behind
to how you approach the pitch, again as this information will help inform and each of these, but I think fundamentally
sharing them with the client team so craft the response. it boils down to these two questions and,
they have an opportunity to comment or in preparing for pitches, brands can often
correct should they choose to do so. So, although next year’s budget may not focus much more on the first question,
be locked down, you can probably get and less so on the second.
But if this is not forthcoming you access to what the client has invested
should apply the criteria that any this year across the different elements of If that’s the case, hopefully there’s some
agency should have in mind in such marketing activity. useful guidance here depending on the
circumstances: financial stability, circumstances, ignorance, unwillingness,
predisposition to marketing and And the reality is that year on year, most or omission.
advertising, reputation (company and brands’ marketing looks more similar
individuals), previous knowledge or than different to the previous year. By And if ever AAR comes to you with a new
working relationship, the appeal of the taking the current year as a proxy, you’re business opportunity where we haven’t
business, brand or sector upon which not going to go too far wrong in your asked the money question, you should
to base your decision. assumptions. call us out on this! ■
21AAR PULSE 2020 ■ INSIGHTS AND PERSPECTIVES
Ten
observations
on the
creative pitch
by Victoria Fox
There are many reasons why I took you are, indeed, sitting on the other side
I’ve always loved new the role of CEO at AAR but the of the pitch table.
business. The focus is attraction of seeing inside the pitch
on a challenge that was certainly a big draw. So, I’m sharing my initial ten observations
on creative pitches so far. Most of them
doesn’t have client I’ve always loved new business. The apply to any type of pitch.
boundaries in the same focus is on a challenge that doesn’t have
way a day-to-day client boundaries in the same way a
1
Competitive context is everything
brief does. day-to-day brief does. This is where we in new business. The talent across
stretch ourselves strategically, creatively this industry is immense. I’ve been blown
and commercially. It’s where an agency away by the meetings I’ve had. What
pushes its boundaries and evolves. There makes an agency unique are its people
is nothing like that feeling when you win, and its culture, as these cannot be
and nothing like that feeling when you cloned. Capabilities are important, for
don’t. sure, but your competitors are equally
capable in most cases. Don’t waste too
If you work in an agency I can’t believe much time on table stakes. Really think
you haven’t had a moment where you’ve about who you might be up against and
thought “I’d love to sit on the other side how and what they will present, so you
of the table in a pitch”. Or is that just me? are setting your stall up in a competitive
context.
After my first couple of months here, I
sat down and thought about my initial Go early with an opinion. Given how
observations and it dawned on me that
2 competitive the new business
with, my agency hat on, I’d have liked to landscape is, what will set you apart very
hear about the things that jump out when early on is a strong point of view.
22INSIGHTS AND PERSPECTIVES ■ AAR PULSE 2020
Benefit, Benefit, Benefit. It is so Be waiting in reception, don’t let them to stretch into so many areas. In addition,
3 tempting to tell a client everything feel like they are just another client holding groups offer all specialisms under
you are proud of. But less is more, so signing in. one roof. This is exciting and good for
keep asking yourself ‘why am I including organic growth. But from a new business
this part?’, ‘what benefit is this to the Make yourself memorable. Another perspective, it can be a negative. If a
client sitting opposite me?’. Be brutal.
7 way to remind clients how special client isn’t specifically asking for all these
Strip it out. they are is the effort taken with the skills from you, then focus on their ask
catering. I know it sounds trite but the and lead them through this specialist front
Capturing the essence of your biscuits, cakes or sugar fixes when it’s late door. As tempting as it is to show them
4 agency is hard, but dynamite in the afternoon do get noticed. The everything you can offer, it is distracting
when you get it right. Authenticity is reason they set you apart is not because and can put them off. Once they are a
everything. Distil who you are as an clients are shallow, they set you apart client you can take them on a journey and
agency and culture, not what you think because, in a highly competitive introduce new specialisms.
you should be. landscape, there might be little to
separate you strategically and at this point Respect. In the current marketing
Honesty and directness helps. in the race little touches really matter.
10 landscape where clients are looking
5 Constructive criticism is your best to fuse traditional and digital marketing
friend. Hard to give, hard to hear but the Don’t go into transmit mode, techniques, there is a genuine need to
most valuable thing we can offer as an
8 especially in a chemistry meeting. change hierarchies across disciplines. The
intermediary. Always aim for a dialogue. It can be hard ‘lead agency’ role is changing and true
to create but it is a delicate balancing act collaboration and respect across disciplines
The welcome is everything. Whether between telling, listening and chatting. can drive competitive advantage. Choose
6 you are a small independent or a language carefully and demonstrate
large network agency you can still make Choose the right front door. Across genuine interest and respect for other
the client feel like the most important
9 the industry there is so much partners you will be collaborating with
person walking into the building that day. convergence, and agencies are also able should you win the pitch. ■
23AAR PULSE 2020 ■ INSIGHTS AND PERSPECTIVES
Cross-functional
teams call
for focus
on relationships
by Vicky Gillan
Is there any business that isn’t discussing how to keep ahead of their customer’s
expectations? Or indeed working out how to build customer experiences that
are satisfying from end to end, and still deliver on the brand promise?
Making this work means the end of but its success is determined by how
silos. It fundamentally shifts how a it is implemented in the day-to-day
business needs to work both internally reality. Are the smart – but possibly
and with its external marketing less experienced – marketing teams
partners (including agencies). within brands and their agencies
empowered to make change happen?
External marketing partners
increasingly need to be fully Are agencies joining up with each
embedded with internal teams other across the client’s ecosystem to
(Insight, Analytics, Proposition collaborate and help the client break
Development, Project Management, down silos? Are agencies working
Brand etc.) and with each other, hand-in-glove with the internal
in order to create programs that marketing teams to drive the right
genuinely engage customers and change? How are repeated blocks and
join up all the channels through barriers such as budget ownership,
which they choose to interact with briefing and sign-off being removed
the brand. This landscape requires to accelerate success?
a different team set-up, different
processes and a radical change in ways New cross-functional client and
of working. The answer has to be agency teams must include a wide How teams come together,
cross-functional teams. range of capabilities and personality
1 physically and remotely;
types to create the alchemy that
All brands are on this journey to unblocks new thinking and unleashes How teams behave and
build cross-functionality and true game-changing new ideas. But we’re
2 interact;
collaboration. It’s complex and idealistic if we think they won’t need
challenging, and our view is that some help in coming together and How easily ideas and thoughts
change that is occurring is too painful, forging respectful and productive
3 are built on;
too slow and is delivering varying teams. Any new cross-functional team
degrees of success and efficiency. needs nurturing, whatever their remit. How quickly information is
The reason is that in all this change The effectiveness and success of any
4 shared;
management, we are not focusing team is evident in the detail, and in
enough on relationships and people. our view the signs of success can be The quality of the information
seen when the following aspects are
5 that’s shared;
A change is decided at a senior level considered:
24INSIGHTS AND PERSPECTIVES ■ AAR PULSE 2020
This landscape requires
a different team set-up,
different processes and
a radical change in ways
of working. The answer
has to be cross-functional
teams.
you work with, what will come
naturally and what needs your
helping hand to nurture.
To help focus where your assistance
will have most effect, our advice is:
■ Ask what the blocks are to making
this cross-functional approach really
work? Ask both your team and the
client to get the complete story,
and then collectively prioritise what
matters most.
■ Take the “what will make
the biggest difference” list and
differentiate between the factors
the client team controls, and
those that you can influence. Act
accordingly.
■ Lean into what you have no
control over and be honest in how
How constructively disagreements Much as we all want collaboration you handle that conversation. Adam
6 are handled; and cross-team functionality to just Morgan’s “Beautiful Constraint”
work, it is by making subtle changes in approach to turning limitations into
How blocks and barriers are all these aspects that enormous leaps advantages always helps to soften
7 overcome; can be made, and genuine pain points the blow and can produce surprising
taken away from both the client and results.
How the relationships work agency teams.
8 under pressure; A healthy dose of agency objectivity
SO HOW DO YOU DRIVE can bring new perspectives,
How consistently success is THOSE SUBTLE CHANGES? reframing a client’s view of the
9 articulated across the team; Within some marketing cultures the root causes of any problems, and
team will need to ask permission to offering new ideas and solutions
Who wants in? Who cites this change first, and at others you can can transform ways of working and
10 team – unprompted – as being get away with asking for forgiveness have a huge impact on marketing
the game changers? afterwards. You’ll know which culture effectiveness. ■
25The AAR team understood our needs from the beginning and shaped a pitch process to ensure we would find the perfect agency partner for us. AAR’s industry expertise was invaluable. It gave us confidence that we were shortlisting agencies that were right for us and, coupled with their logistics and project management, allowed us to run the pitch process within demanding timelines. AAR was able to guide us through the process, ensuring we were engaging the right stakeholders at the right time. They didn’t influence our decision but kept us honest throughout and ensured we stayed true to our original objectives. The emphasis was not on completing the process within the time but absolutely on finding the right long-term partner for us. Put quite simply, I don’t believe we could have done it without AAR! Thank you! Virgin Media
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